Weekly Vietnam Property News (5 – 11 June, 2020)
What is the driving force for the real estate market in 2020?
Under the influence of the Covid-19 pandemic, the real estate market in 2020 is forecast to continue to be quiet. However, with good epidemic control as well as stimulus policies, the real estate market in 2020 is expected to have many bright spots.
The real estate market in 2020 has just experienced a “freeze” period due to the impact of the Covid-19 epidemic. Since May, with the order to remove quarantine, the real estate market has been recovering. According to Vietnam Report, the opportunity of the real estate market in 2020 comes from the following factors:
Firstly, the Government’s actions on policies – laws, such as solving outstanding problems in projects from 2019 and earlier, improved procedures and procedures; official regulations on condotel – officetel; the fierceness of the central and local governments against violations. These factors create new momentum for the market to develop healthier and more effectively.
In addition, although the Covid epidemic is unexpected and only impact in the short term, the Government has taken timely measures to support the real estate market to recover well after the epidemic with a series of major Preferential policies are issued including tax reduction, tax payment extension, land rental and credit support package for people and businesses affected by the disease.
Secondly, Vietnamese investors with greater capacity and flexibility when willing to diversify capital structure, invest more on quality.
Thirdly, FDI inflows into the real estate sector continued to increase. According to data of Foreign Investment Agency, FDI disbursement in 2019 in Vietnam reached US $ 38.02 billion, up 7.2% compared to the same period in 2018, the field of real estate business ranked second. with total investment capital of 3.88 billion USD, accounting for 10.2% of total registered investment capital.
Fourthly, the tendency of repatriation to avoid the Covid epidemic of expatriates. Remittances of Vietnam for three consecutive years in the top 10 largest remittance recipients in the world, with US $ 16.7 billion in 2019, US $ 15.9 billion in 2018 and US $ 13.8 billion in 2017 awake. Of which, more than 20% of remittances are for real estate.
According to experts, if Vietnam continues to control the current epidemic well and overcome the disease, it will be a safe bright spot for epidemiology, economy and politics, thereby creating trust and attracting overseas Vietnamese. investment countries as well as foreigners come to live and work when the number of people returning to Vietnam to avoid the epidemic is increasing.
Fifth, the Vietnam – European Union Free Trade Agreement (EVFTA) was adopted in February and is expected to come into effect in July 2020, which will strongly promote industrial sectors and Exports in Vietnam through the removal of 99% of tariffs on goods have resulted in tenants expanding with increasing demand from European manufacturers.
Sixthly, infrastructure is increasingly invested in many provinces and cities, creating a motivation to attract real estate investors. In addition, under the impact of the Covid-19 epidemic, enhanced public investment will create opportunities for the development of the real estate industry. As in 2020, Ho Chi Minh City will start constructing 27 transport projects, many of which are key projects that will create opportunities for real estate value in the area such as the new Eastern bus station and Thu Thiem bridge 2 … is raised.
With Covid-19 settling down, the real estate market started moving
By this time, the Covid-19 epidemic was well controlled. The real estate market has started to move back with a series of new projects offering market exploration nature. Some projects have started to have transactions. This is an optimistic signal for the market. The number of customers interested in real estate has exceeded the expectations of many businesses.
In just over a month after the social separation period, the projects were simultaneously offered for sale in Hanoi, Ho Chi Minh and many other localities. The real estate market picture has seen bright colors.
East Ho Chi Minh City attracts new investors
The recent green light for Ho Chi Minh City People’s Committee to set up an innovation center in the east will bring the so-called Vietnam Silicon Valley to life and attract more investment into the real estate market. city estate.
The proposed innovation city is expected to combine research and development centers, human resource training, and scientific and technological applications.
The creation of this innovative city is based on the idea of building a smart and high-tech urban development zone for Ho Chi Minh City, the southern key economic region of the country and surrounding areas.
The initiative, according to Ho Chi Minh City Party Secretary Nguyen Thien Nhan, will support the region’s economic momentum in the next decade and is expected to contribute 30% of Thanh’s GDP. Ho Chi Minh City, at the same time, become the nucleus of Industry 4.0 in Vietnam and deploy a smart urban center.
According to the design proposed by Sasaki-enCity, this creative center will include districts 2, 9 and Thu Duc.
Compiled from many sources by LOOKOFFICE
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