Construction, property expected to thrive on economic development hinh anh 1Illustrative image (Source: VNA)

Hanoi (VNA) – Strong economic growth, rapid urbanization and huge demand for housing are expected to create favourable conditions for the property and construction sectors to thrive in the time to come.

Vietnam’s gross domestic product (GDP) is estimated at 6.81 percent in 2017, placing great demand on industrial construction. Alongside, infrastructure investments have scaled up to serve urban development.

Vietnam currently has 772 urban areas, including two special urban areas, 15 first-grade urban areas, 47 third-grade urban areas, 64 fourth-grade urban areas and 630 fifth-grade urban areas.

Red carpet has been rolled out for the construction and real estate sectors as the robust development of tourism, education and culture in the last two years has pushed demand for office space in big cities, according to Jones Lang LaSalle Incorporated, an American investment management company specialising in real estate.

The construction sector has grown by an average of 12 percent per year in the past 10 years and the value of the sector is forecast to hit 14 billion USD by 2021. Stable macro-economic policies also create help real estate companies develop.

The Vietnam Report Company said the property market will experience strong growth and merger and acquisitions are like to boom from now until 2020. 

Statistics from the Ministry of Planning and Investment showed that as of November, the number of property businesses surged 60.5 percent to 4,534 while that of construction firms rose 9.1 percent to 14,695, up 9.1 percent year on year.

According to the Housing and Real Estate Market Management Agency under the Ministry of Construction, property transactions increased 5 percent per month, resulting in a substantial hike in revenue of property businesses like Phat Dat Real Estate Development Corporation (252 percent), Dat Xanh Group (219.1 percent) and Thu Duc Development Corporation (87 percent).-VNA