Illustrative image (Source: VNA)

Hanoi (VNA) – An economy with relatively high growth, the high proportion of foreign direct investment (FDI) capital and remittances spurred growth for the Vietnamese real estate sector in 2016 and the trend is expected to continue in 2017.

At a press conference on the real estate market held by the CBRE in Hanoi on January 10, the American real estate firm said the proportion of the FDI capital flowing into the real estate market in 2016 was the second highest among economic sectors.

According to CBRE Vietnam General Director Marc Townsend, despite a lack of breakthroughs, resources for the real estate sector remain strong and will prop up the market in 2017.

The HCM City Real Estate Association shared the viewpoint with CBRE, saying that FDI capital and remittances will continue supporting the market.

According to Nguyen Hoai An, Director of research, consultation and appraisal and asset management of CBRE, FDI capital remained a key growth driver in 2016 and seven percent of FDI flowed into real estate, which was modest compared with the level of 25 percent during 2007-2009 but was valuated as more sustainable.

On the development of the real estate market, Savills Vietnam cited the sector’s growth of four percent in 2016, the highest level in the last five years.

The growth of the sector is manifested by more than 3,100 newly-established enterprises and retail revenue of 117 billion USD, up 10 percent from the previous year.

An said the apartment supply in Hanoi fell 10 percent but the number of successful transactions increased month by month.

In the city, a total of 21,188 apartments were sold in 2016.

According to Savills Vietnam, about 77 projects with 55,000 apartments will join the market in 2017, mostly located in districts of Hoang Mai, Thanh Xuan, Ha Dong and South Tu Liem.

Nguyen Tran Nam, Chairman of the Vietnam Real Estate Association, said the demand for small-sized apartments and social housing is large, with concerted efforts from the government needed to develop these markets.-VNA