To shape a stable, transparent, non-speculative and non-bubble real estate market, the Ministry of Construction is completing the project on “Assessing the market, forecasting medium-term trends, proposing solutions and mechanisms to promote stable and healthy market development” to submit to the Prime Minister in late 2017.
Since the beginning of 2017, the real estate market of Vietnam has recovered its strength and become increasingly attractive to foreign investors with many large corporations accelerating their investment in Vietnam. According to many experts, in the last months of the year, cash flow into the sector will continue to increase sharply through the merger and acquisition (M & A).
Despite having fallen to the fourth position in terms of foreign direct investment in the first eight months of 2017, the real estate sector remains the second-biggest recipient of this type of investment to date.
The occupancy rate at operational industrial parks (IPs) nationwide has hit 73 per cent, according to the Economic Zone Management Department under the Ministry of Planning and Investment.
The real estate market will see an abundant supply of mid-end apartments toward the end of the year, according to the Vietnam National Real Estate Association. A number of renowned investors, such as Vingroup and Eurowindow, will launch a large number of mid-end apartments, which are of high demand.
The Vietnamese property market must improve market information transparency to attract investment and develop sustainability, experts said. Although there are currently many sources for market information--real estate associations, property services firms such Savills, CBRE, JLL and Cushman Wakefield as well as the Ministry of Construction--the information is rarely consistent among market research firms.
Authorities of HCM City plan to build apartments with prices at under VND1 billion (US$43,898) per unit for employees located in the city.
The total value of real estate inventories in the country decreased sharply to about VND27,894 billion by the end of May 2017, according to the statistics of the Bureau of Housing and Real Estate Market Management under the Ministry of Construction. Although inventories tend to go down, forecasted rising supply is fuelling up market concerns.