Do you believe the outlook is brighter for Vietnam’s property in 2022?

[ASEAN NOW News]

In the past, experts say investing in property has proven a reliable return against other types of speculation, including stocks and shares or even gold.

 

Perhaps only buying paintings or taking a few bitcoins could come close to real estate but they are quite speculative.

 

Analysts believe the outlook for Vietnam's own real estate industry in 2022 is expected to be positive as the market is receiving many impulses. ... Firstly, analysts state that Vietnam's economy is forecasted to recover at a positive level, growing at 6 - 6.5% or even 6.5 - 7% if the recovery program is well implemented.

 

They expect that demands will then bounce back strongly.

 

In the last days of 2021, Ho Chi Minh City People’s Committee issued a decision approving the adjustment of the 1/500 detailed planning of the eco-smart city project invested by Lotte Group in Thu Thiem New Urban Area of Thu Duc city.

 

This is a significant turning point after the project has been stalling for 10 years due to the government’s review and inspection of all projects in Thu Thiem New Urban Area.

 

In March 2021, the government issued a decision to permit Lotte Group to continue this project after being reviewed by competent bodies.

 

Covid concerns

 

Information of the Omicron variant of COVID-19 appearing in Vietnam from a UK arrival in December has been a cause for worry in the real estate market.

 

However, now this variant seems to be under control, many market players still have their hopes up for a recovery in 2022 due to the Vietnamese mentality of wanting to own houses and residential land, continuously driving demand.

 

Along with Lotte Group and CLD, many other developers are also implementing projects with optimism. Sharing with VIR, many said that investment flows would remain strong in 2022 as there are many positive signals for recovery and growth.

 

According to economist Can Van Luc, nearly $2 billion of newly registered foreign investment had been poured into real estate in the first 11 months of 2021.

 

He highlighted positive moves in the legal environment, with the National Assembly set to discuss amendments to the Law on Land and other statutes.

 

Additionally, in the socio-economic recovery and development programme for the next two years, the government and the National Assembly are discussing a package of about up to $2.83 billion) for affordable housing development.

 

Foreign optimism as well

 

Philippine President Rodrigo Duterte will end his term with the best housing production and financing average of 195,687 per year which is the highest since 1975, according to data from the Department of Human Settlements and Urban Development (DHSUD).

 

Over in the States, last year was great for selling a home but not a great year if you were trying to buy one. Home prices rose sharply and the number of homes for sale declined.

 

Although the 2022 housing market will still tilt toward sellers, it offers a slightly better chance for buyers to snag their dream homes.

 

Low mortgage rates and limited supply helped push prices higher. There were just 1.38 million homes for sale nationally in June, down 23 percent year-over-year, according to Redfin.

 

Daryl Fairweather, Redfin’s chief economist said, “Remote work, low mortgage rates, a shortage of building materials and wealth inequality that has allowed an influx of affluent Americans to buy vacation homes, to name just a few factors, have come together to create a historic year for real estate.

 

Buyers paid more for homes, bought sooner than they planned, searched outside their hometowns or all the above. [2021’s] frenzied housing market has been one for the books — but it may become more balanced in 2022.”

 

Hype and interest rates

 

Eventually, it is all down to several factors.

 

The industry themselves talking up the market in the media grabs people’s attention.

 

Secondly, the lowering of local interest rates will help a lot.

 

And finally buying the best property in the best location will always pay dividends.

 

Buying for investment is trickier especially in younger markets such as Vietnam or Cambodia.

 

However, if you are considering buying for somewhere to live, then you are buying for choice and profit is not the main concern.

 

Still, if you think prices have bottomed out, maybe now is the time to head to the realtor’s office, or just keep on renting.

 

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