The domestic real estate market is hoped to have growth in the fourth quarter of this year and before the Lunar New Year 2021 if, by this year-end, the domestic economy is restored to levels from before the COVID-19 pandemic, according to insiders.
Nearly US$6 billion in foreign direct investment was poured into Viet Nam’s industrial parks (IPs), processing zones and economic zones (Ezs) in the first half of the year, according to the Ministry of Planning and Investment (MPI).
Ministry of Construction data shows that some 80 per cent of developers stopped sales or even temporarily halted operations during the first quarter while the rest had modest operations going.
As Vietnam has emerged as an attractive option for companies seeking to diversify their manufacturing operations, industrial zone developers are planning to expand their land banks to welcome new investments heading to the country.
Property firms are gearing up to tap opportunities from the post-pandemic recovery of the real estate market, which was predicted to soon get back on its feet.
Despite the changes to the Law on Housing and foreign ownership caps five years ago, real estate developers now show an increasing demand to revise regulations and increase the cap even more, to up to 50 per cent. However, revisions will be tough to put into practice, even if the suggestion is recognised by the government.
Industrial park infrastructure development companies continue to do well amid the Covid-19 pandemic, and the industrial property sector is expected to thrive since Việt Nam is considered among the most attractive investment destinations post-pandemic.
Vietnam-Korea Techno Park proposed to the Dong Nai provincial government to build a 300-hectare industrial park. The project will be developed in three stages with $150 million in total investment and is expected to lure $2-3 billion of investment within six-nine years of operation.