Logo of Phnom Penh Post newspaper Phnom Penh Post - Vietnam real estate market expected to recover post-Covid



Vietnam real estate market expected to recover post-Covid

Content image - Phnom Penh Post
The Covid-19 pandemic has significantly affected the Vietnamese real estate market but many expect a recovery when the virus is brought under control. VIETNAM NEWS AGENCY

Vietnam real estate market expected to recover post-Covid

The Covid-19 pandemic has caused a slowdown in the Vietnamese property market but many experts believe this is only temporary and are pinning their hopes on a rebound once the virus is under control.

Su Ngoc Khuong, senior manager at real estate consultancy firm Savills Vietnam, said the outbreak of the Covid-19 pandemic in the second quarter of this year significantly affected socio-economic development. The real estate market saw declines in purchasing power and investors were more cautious.

Statistics from Vietnam’s largest property portal batdongsan.com.vn showed that after reaching a peak in March, the level of interest in the real estate market showed signs of decreasing.

Real estate searches on the portal in April dropped by nearly 18 per cent against March with searches for land down by nearly 21 per cent and apartments by 17 per cent. Interest continued to decline in May with searches for residential land decreasing by 19 per cent.

Notably, prices of apartments saw an increase of about three per cent against the same period last year.

Vietnam Association of Realtors deputy director Nguyen Van Dinh said the shortage of supply was a major reason for the increase in the apartment prices in the first half of this year.

According to Savills Hanoi director Matthew Powell, the Covid-19 pandemic would continue to impact the real estate market, causing uneven development between different localities, different market segments and different projects.

It was important that the virus be put under control together with the vaccination programme, he said, adding that when the virus was successfully contained, investment would flow into the economy.

He, however, urged individual investors to study the information of property projects, planning and infrastructure development carefully before making decisions.

Mai Duc Toan from the Construction and Material Trading Group said not only the real estate market but other sectors were holding their breath for the updates on the pandemic.

“The market is still difficult to predict. Local land fever might occur. If the pandemic is successfully put under control, the market would bounce back in the second half of this year,” Toan said.

He added the real estate market development largely depended on the pandemic and pointed out that in the three previous outbreaks, prices were seen to increase in a number of segments, even forming large-scale land price fever at the beginning months of this year.

Phu Dong Group director-general Ngo Quang Phuc said the real estate market had large potential for development and the outbreak would only have a short-term impact.

Phuc said the market was expected to see robust development, providing the legal problems of real estate projects were tackled properly.

Dai Phuc Land director Nguyen Thi Thanh Huong said that from the beginning of 2020 to date, despite virus outbreaks, the real estate market basically kept a solid foundation. There were not significant price drops or sell-offs but the market often saw stronger transactions and increases in prices.

According to Khuong, the property market would not see any breakthrough development because the Vietnamese economy was still struggling with the impacts of the Covid-19 pandemic.

Most transactions recently were from long-term investors who had idle money to pour into the real estate market, he said.

In the scenario of market recovery, the housing segment would be the most robust, driven by high demand, Khuong said, adding that while the pandemic affected incomes, housing demand would focus more on affordable homes.

He added that the resort and tourism property market would continue to suffer and retail property would struggle to compete with rising online platforms. The interest of investors in industrial property remained high but investment in this segment would not be as good as expected because of travel restrictions.

VIET NAM NEWS/ASIA NEWS NETWORK

MOST VIEWED

  • WHO: Covid in Cambodia goes into new phase

    The World Health Organisation (WHO) in Cambodia said that Cambodia has reached a new phase of the pandemic with “decreasing case numbers, high vaccination coverage and a more transmissible circulating variant threatening a hidden surge”. In a press release on September 6, the WHO said that

  • 'Pursue your goals, reach out to me': Young diplomat tapped as envoy to South Korea

    Chring Botum Rangsay was a secretary of state at the Ministry of Foreign Affairs and International Cooperation before being designated as the new Cambodian ambassador to South Korea. According to her official CV published on the foreign ministry’s website, she started her first government

  • International air visitor arrivals dip 93%

    The number of foreign tourists entering Cambodia through the Kingdom’s three international airports witnessed a sharp 92.5 per cent year-on-year decline in the first seven months of this year, according to the Ministry of Tourism. The airports handled 51,729 international tourists in the January-July period versus

  • School reopening ‘offers model for other sectors’

    World Health Organisation (WHO) representative to Cambodia Li Ailan said school reopening process should be used as a role model for reopening other sectors currently mothballed by the Covid-19 pandemic. Li strongly supports the government’s decision to reopen schools, saying it is a decision

  • Covid jab drive for 6-11 age group to begin Sept 17

    Prime Minister Hun Sen has permitted Covid-19 vaccinations for over 1.8 million children aged 6-11 across the country from September 17 in order for them to return to school after a long hiatus. Hun Sen also hinted that vaccinations for the 3-6 age group will follow in

  • Is Cambodia’s microfinance sector running its course?

    Economic growth and the strength of the banking system might have prompted a slow decline of the microfinance segment that has been raising a population ‘The MFI business model is over,” opined David Van, a Cambodian investment expert, recently. He felt that in a couple