Trends leading the real estate market in 2021

Assessing the prospect of the real estate market in 2021, Dr. Su Ngoc Khuong, Senior Director of Savills Vietnam, said that the real estate market in general and in Hanoi in particular is expected to explode.

Vietnam's real estate market has witnessed difficulties in the first half of 2020. However, in the last period, there has been a "speedy" recovery, not only standing impressively but also developing quite well. in some segments. Many experts believe that the real estate market will continue to recover and be vibrant in 2021.

Looking back at the real estate market in 2020, Mr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Brokers Association, assessed that the real estate market fell into a quiet state in the first half of the year and regained a quick recovery momentum. rapidly from the third quarter of 2020. In the second half of 2020, there were 74,500 successful trading products, equivalent to 50% of the successful transactions of 2019.

Regarding the market movement, Ms. Hoang Nguyet Minh, Deputy Director of Savills Hanoi Investment Consulting said, 2020 has witnessed a lot of changes in the real estate market. The retail, resort, and hotel real estate segments have been heavily damaged by the COVID-19 epidemic; Offices, land plots and apartments are less affected. Meanwhile, industrial real estate is the "bright spot" of the market in attracting capital from foreign investors thanks to free trade agreements and the trend of shifting production chains in the world.

Notably, despite the impact of the epidemic, real estate prices in 2020 continued to increase. According to Mr. Ha Quang Hung, Deputy Director of the Department of Housing and Real Estate Market Management (Ministry of Construction), the price of luxury apartments increased by about 0.5%; mid-end apartments increase about 2-3%; ground land increased by 3-5%, in some cases it increased by 10%. In addition, the market also witnessed an imbalance in real estate supply and demand when the housing demand for low, middle and middle income people was quite large but the supply was limited.

Real estate market in 2021 will be more sustainable

Assessing the prospect of the real estate market in 2021, Dr. Su Ngoc Khuong, Senior Director of Savills Vietnam, said that the real estate market in general and in Hanoi in particular is expected to explode when many new projects will be launched and housing is still an essential need. . As for the real estate market in general, the housing market has always attracted the attention of investors and customers and will probably be a segment that will continue to grow more than in 2020. Meanwhile, the real estate market. rooms, commercial centers, serviced apartments, hotels will be more difficult.

According to Mr. Khuong, industrial real estate continues to be the "bright spot" of the market, however, this is only the time to prepare resources including land fund, infrastructure... to attract investors. investors when the epidemic is under control.

Agree with Dr. Khuong, Mr. Nguyen Van Dinh said that the real estate market in 2021 will be more sustainable than in 2020, because the economy grows at a good rate, the demand is still strong. Real estate prices in 2021 may increase by over 10% compared to 2020.

Meanwhile, Dr. Can Van Luc, a financial expert, said that there are a number of "plus points" to promote the development of the real estate market in 2021. Typically, the market has adjusted quickly to the epidemic situation as well as applying pressure. Use technology to sell. In addition, the amended and supplemented laws such as: Law on Enterprises with many significant reduction points; The Law on Securities will come into effect from the beginning of 2021 with regulations on raising capital from funds that will be the driving force for businesses.

In addition, the shift of supply chains and production abroad in the context of international businesses looking to new safe and cheaper lands has created opportunities for industrial real estate in Vietnam. Another "plus" is the rapid disbursement of public investment, contributing to the overall growth of the country's economy. Besides the interest rate issue, this is the lowest interest rate in the past 15 years, so households and young people will be favorable to buy houses or invest.

Forecasting the trends that will lead real estate in 2021, experts from Jones Lang LaSalle Group (JLL) believe that this year's trends will maintain development or change to match the needs of real estate. current demand. According to experts from JLL, there are 5 trends leading the real estate market in 2021.

The first trend is “urban within city” or “integrated real estate” which is often used for large-scale projects. The real estate market is gradually maturing, home buyers are more and more interested in a healthy and sustainable living environment to settle in rather than a mere living space. Therefore, developers began to find ways to attract buyers by creating well-planned residential areas with many amenities, in order to help future residents avoid the annoyance of rapid urbanization and public infrastructure lags behind.

The second trend noted is the experimentation of working remotely at the office. This change was implemented in many businesses and "accelerated" due to the COVID-19 epidemic.

Another trend is that e-commerce drives logistics and warehousing, becoming a big driver for the market. Vietnam is currently one of the fastest growing e-commerce markets in Southeast Asia. In recent years, the supply chain has become increasingly focused on serving consumers, and speed of delivery is one of the main factors in purchasing decisions.

Compared to traditional logistics operations, e-commerce is more labor intensive and requires three times more warehouse space. That is part of the factor driving the increase in investor demand for industrial real estate around the world.

Notably, the fact that businesses still keep the "green" and sustainable direction is the 4th trend leading the real estate market in 2021. According to the analysis, when financial funds become tight, protection initiatives The environment is one of the first parts to be crossed out of many companies' growth plans. But despite the difficult times ahead, companies and investors are expected to still make “green” choices, for a better and more sustainable future lies ahead.

The fifth trend identified is the fact that investors are turning to the medical and healthcare industry. In 2021, increased investor interest in key sectors during the health crisis. Both local and international investors have targeted health and medical logistics and they are in need of cold storage locations closer to customers to serve the growing demand for sensitive products. with temperature such as vaccines, cosmetics, food, pharmaceuticals...

In order for the real estate market to develop stably and overcome the supply-demand mismatch, Deputy Minister of Construction Le Quang Hung said that in 2021, the ministry will continue to study and develop mechanisms, policies and solutions. encourage and attract foreign investment into the real estate market; focus on encouraging the development of real estate products to meet the great needs of society such as social housing, low-priced commercial housing. At the same time, regularly follow the market situation, promptly adjust and remove difficulties, limitations and inadequacies of mechanisms and policies, especially the impact of the COVID-19 epidemic to ensure the real estate market. Stable and healthy real estate development.

"The real estate market in 2021 is expected to have many 'bright spots' thanks to the Government's promulgation of many policies to support the business community. Decree No. 25 was issued in February 2020 regulating land allocation to investors. The winning bidder will be deployed immediately after completing the compensation; Decree No. 41 extends the deadline for paying taxes and money; Circular 21 of the Ministry of Construction stipulates that the minimum area of ​​​​apartment apartment is not less than 25 m2 comes into effect; Resolution 164 removes the legal framework for real estate projects, especially when Decree 148 amends and supplements a number of decrees detailing the implementation of the Land Law to take effect. from February 8, 2021 with the important content of rescuing thousands of projects with interlaced land, which is expected to remove the supply shortage bottleneck, "breathing a new wind" into the real estate market.

According to Chinh phu