Real estate accounts for 7.6% of Vietnam economy
Local experts list real estate the most important sector in many countries, including Vietnam.
Prices of shophouses in Hanoi in 2020 set up a new level thanks to investment appetite and thin supply of this real estate segment.
The prices in some projects with well-invested infrastructure were reported 5% up from the previous year, according to the Vietnam National Real Estate Association (VNREA).
“Landed property remains thin in supply and favorite segment for investors in Hanoi,” VNREA Deputy Chairman Nguyen Van Dinh said at a meeting earlier this week.
Some projects with good infrastructure like Kien Hung and Him Lam in Ha Dong District have been offered at VND200 (US$8,695)-250 million/square meter (sq.m) and VND300 million (US$13,000)/sq.m, respectively, Mr. Dinh said.
In 2020, Hanoi’s real estate market witnessed few licensed projects while the new launches came mainly from low-rise houses and shophouses mostly in projects invested by Vingroup, Ha Do Group, An Lac Investment JSC, and Him Lam Corporation.
Other supply was from mid- and high-end apartments which caught little attention and posted low occupancy, Mr. Dinh explained, adding that inventories are mainly apartments priced from VND35 million/sq.m and landed property marketed more than VND100 million/sq.m.
Many transactions are aimed to serve short-term investment and gain profits.
Economic slowdown and falling income have driven down demand for housing and long-term investment in real estate, drawing investment from other economic sectors to short-term plans, mainly in property projects in outskirt, Mr. Dinh emphasized.
