Property market to thrive in 2022 and coming years: Vietnam Report
Vietnam’s real estate industry has developed along with the recovery of the economy after the COVID-19 pandemic, and is forecast to see brighter and more positive colours compared to 2021 and gradually return to the pre-pandemic trajectory (in 2019), according to the Vietnam Report Joint Stock Company.
Hanoi (VNA) - Vietnam’s real estate industry has developed along withthe recovery of the economy after the COVID-19 pandemic, and is forecast to seebrighter and more positive colours compared to 2021 and gradually return to thepre-pandemic trajectory (in 2019), according to the Vietnam Report Joint StockCompany.
The growth of this industry in the near future is mainlythanks to companies’ restructuring of their operations and their recovery fromthe negative impact of the pandemic, along with the support of stimuluspackages.
Under the Government's economic incentives, interestrates remain low, the disbursement of public investment is accelerated, foreign investmentcontinue to flow strongly into Vietnam, and remittances stay stable (except for those from Russia and Ukraine).
In the short term, the Government's economic stimuluspackage, no matter which area would benefit, will bring positive effects tothe real estate market, thanks to the improvement of people's purchasing powerin general as well as their future income expectations, according to the VietnamReport.
Experts said that the 350 trillion VND (15.3 billion USD) economic support package, which is about to be implemented with nearly 114 trillionVND allocated for the infrastructure sector, will not only have a direct impact on thereal estate market in the short term but also work as a driving force forthe development of the market in the coming years.
The growth engine for the real estate industry in general,not just in the post-pandemic period, is also affected by the trend of urbanisation and the rise of the middle class. The increasein the number of privately-owned cars also greatly impacts the demand for somesegments of high-end apartments, resort real estate and land plots.
Vietnam Report quoted Knight Frank's latest Prosperityreport as saying that in the next 5 years, the growth of the super-rich inVietnam is forecast to reach 26 percent, on par with China’s Hong Kong andTaiwan. This is the basis for many investors to continue pursuing the high-endand luxury segment in the coming time.
In addition to the supportive push, the real estate industryin 2022 also faces many challenges and obstacles due to outstanding problems in pandemic control work ofcountries in the world and Vietnam as well as in economic recovery, such as increasing number of new COVID-19 cases, the pressure from inflation and the general instability ingeopolitics./.
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Illustrative image (Photo: VNA) 
