A view of Da Nang. The real estate market has been least affected by the pandemic. (Photo: tapchitachinh.vn) Hanoi (VNS/VNA) - While COVID-19 continues to impact the wholeeconomy, most millionaires in Vietnam have been investing in the real estatemarket.
Experts who took part in a recent seminar themed "Vietnam Real Estate2020-2021: Ready for a new cycle" in Thanh Hoa city, said that among thecountry's more than 12,000 millionaires, 90 percent of them had invested inrealty. At the same time, among the 100 richest people in the country withfortunes of more than 30 million USD each, investment in the real estate sectordirectly and indirectly had reached 99.1 percent.
Dang Van Quang, director of Jones Lang Lasalle Vietnam Co, Ltd (JLL), told theseminar: “Even though there is a trend of factories relocating around the worldwhich is helping Vietnam benefit from foreign businesses that want to enter thecountry, the pandemic is making it harder for investors to visit and survey thelocal market.”
Quang added that even if they were able to, the process for investment couldtake some years, saying: “Vietnam does not have to wait for the leadingenterprises in the world to come. Instead, it can welcome the right businesses, maybe smaller but morecompatible among domestic investors.”
Sharing the same idea, Nguyen Van Dinh, vice chairman of the VietnamAssociation of Realtors (VARS), said: “There is always an effort to attractforeign investment to boost businesses in Vietnam, but over the past 20 yearslocal real estate development has mainly been contributed by domesticinvestors.”
Dinh said: “Most of the development of new areas in Vietnam such as the currentcity of Ha Long in the coastal province of Quang Ninh has been done by localinvestors, not foreign investors."
“It clearly shows that domestic investors are investing in real estate withvery strong growth,” he said, while recommending that in the current context,the Government should adopt appropriate investment policies to attract domesticresources to develop real estate projects.
Finance and banking expert Can Van Luc said that at the present time while Vietnamis dealing with the second wave of COVID-19 and local GDP growth was likely tofall to 1.5-2 percent this year, the realty market was one of the leastaffected sectors.
Luc said normally when the economy was in trouble, securities and real estatewere among the worst affected. However, in Vietnam he said: “Our assessment ofthe 15 main sectors, contributing 80 percent to GDP, shows that real estate wasone of the eight least impacted areas by COVID-19.“
Luc also proposed strong support for the real estate market.
He considered three bright spots of the sector: industrial real estate, realestate and logistics.
“The Government is promoting public investment, and real estate will be one ofthe industries that will benefit the most. During the COVID-19 pandemic, thebehaviour of investors has also changed dramatically. Therefore, real estatestructure will also change a lot to adapt,” added the expert.
Dinh from VARS said: “Despite being affected by the COVID-19 pandemic, realestate is the fastest recovering market in Vietnam.”
Sharing that after the first wave of the pandemic, the market quicklyrecovered, Đính said: “Real estate will be one of the first areas to berestored when the second wave is under control.”
More positively, Nguyen Duc Huong Nguyễn Đức Hưởng, former chairman ofLienVietPostBank, said: COVID-19 was "a revolution" that changed thelocal realty market and made it more valuable for foreign investors.
Huong also suggested a better mechanism for foreigners to buy real estate inthe country, mentioning Singapore and Australia where foreigners can easily buyreal estate if they meet the tax requirements as two examples.
In the current situation, the VARS leader advised local people to invest inreal estate even during the pandemic if they have the money, saying: “Realestate is the most profitable and safest investment channel. Over the years,there has been no crisis where real estate prices have decreased. On thecontrary, they have steadily increased on average by between 5 and 7 percentper year.
According to the "Wealth Report 2019" compiled by London-based estateagent Knight Frank with detailed statistics covering property, investment,geopolitics and everything in between, Vietnam had 12,327 dollar millionairesin 2018, up 23 percent compared to the previous five years. It is forecast thatby 2023, the number of millionaires in Vietnam will increase to 15,776 people./.
VNA
