The property sector will continue to be a fertile ground for foreign investors, largely due to the country’s rising demands for housing as well as deeper global integration with a line-up of bilateral and multi-lateral new-generation trade pacts.
The low- and middle-end segments will continue to dominate the property market this year while the upscale segment will face tough challenges.(Photo: VNA)
Hanoi (VNA) – The property sector will continue to be a fertile groundfor foreign investors, largely due to the country’s rising demands for housingas well as deeper global integration with a line-up of bilateral andmulti-lateral new-generation trade pacts.
According to report from the Ministry of Planning and Investment’s ForeignInvestment Agency, real estate was the second most attractive sector to foreigninvestors in the first quarter of this year, absorbing 778.2 million USD or 7.2percent of the total FDI inflow in the period.
Chairman of the Vietnam RealEstate Association Nguyen Tran Nam said that more than 70 million square metresof floor space have been developed each year since 1999, and the figure will increaseto 100 million in the following years under the national housing developmentstrategy, not to mention service and office space, and industrial, transportand urban infrastructure.
Meanwhile,a survey by real estate services firm JLL showed that as rapid urbanisationwill put pressure on housing needs, Vietnam will need up to 5.1 millionapartments in the low and middle-end segments in the next ten years.
Experts have said that the low- and middle-end segments will continue todominate the market this year while the upscale segment will face toughchallenges.
In Ho Chi Minh City, demand in the high-end segment has dropped remarkably as the astronomical priceshave made them less attractive to the investors.Meanwhile, low-cost products enjoy good sale in Hanoi, with the absorption rateof 76 percent.
Nam suggested the investors have careful plans for their realty products. Projectswith excellent amenity and services will have an advantage on the market.Besides, both budget and high-end users attach much importance toenvironmentally-friendly projects, and those with good security andfire-fighting and prevention system.-VNA
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The low- and middle-end segments will continue to dominate the property market this year while the upscale segment will face tough challenges.(Photo: VNA) 
