The Vietnam real estate market was one of the best-kept secrets for many years. Those who saw its potential didn’t brag much about it. Instead, they just kept banking on its growth.
However, in 2019 all eyes were on the Vietnam real estate market, with many wondering how they’ve missed this massive opportunity. At the same time, many asked about the future of Vietnam’s real estate market. What’s going to happen in 2020, now when everyone knows about it?
Well, the short answer is it will keep on growing. Why? Because every indicator points to further growth. Here are the top five reasons why both analysts and real estate experts think that Vietnam’s real estate market in 2020 is poised for growth.
#5 Galloping Economy Fuels the Real Estate Market
Vietnam’s economy is set on a path to grow somewhere between 6.5% and 7%. That’s by any standards quite high. In the past few years, it had the same level of growth. Parallelly, the real estate market expanded as well. That has been a consistent pattern for the past several years.
#4 Massive Infrastructure Investments
The Vietnamese government has invested billions in infrastructural projects and plans to proceed with that tempo in the next few years. Their plans include more than a thousand km of highway, subway systems in HCMC and Hanoi, airport expansions, and other construction projects. Both financial analysts and real estate experts relate that to the real estate market growth.
#3 Local Demand is Strong
The number of Vietnamese people that have net assets worth at least $30 million has grown for a staggering 320% in just ten years. Traditionally, many of them put their money to work by investing in real estate.
Furthermore, Vietnam’s emerging middle-class is also actively investing in affordable houses and apartments. The demand for one and two-bedroom apartments in Vietnam has never been greater.
#2 The Output Matches The Demand
The biggest nightmare of all real estate investors is a real estate bubble. However, that cannot be the case for Vietnam’s real estate market. All indicators point to a strong real estate market in which the output is in harmony with the demand. That’s the case in all segments of the real estate market, starting from the low-end projects to the most luxurious ones.
#1 New and Improved Legislative
The Vietnamese government is going at great lengths to support foreign real estate investments. The Law on Real Estate Business and the Housing Law were enhanced with new clauses that offer additional protection to real estate investors. Decree No 99 and Circular 19 were also received with great enthusiasm from the business community.
Moreover, Vietnam’s inclusion in The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) was saluted as a great step towards attracting foreign investments.
Every piece of data, every information, everything points to a strong year for Vietnam’s real estate market. What’s a sure thing is that the real estate market will grow. The only real question is which segment will grow most?