Illustrative image. (Photo: VNA) Hanoi (VNA) – With an average gross domestic product (GDP) growth rate of 6-7 percent, Vietnam is being evaluated as an ideal destination for investment, compared to other countries in the region, particularly in the field of the real estate market.
According to experts from property consultant Savills Vietnam, there are many investment opportunities for individual investors when participating in this market in 2022.
A survey conducted by Savills Vietnam revealed that real estate value has increased by 30-40 percent in most residential real estate segments this year. In Vietnam, residential real estate still tends to increase in many areas, especially big cities and provinces despite the complicated pandemic situation.
Investors tend to expand their investment into land funds in satellite cities around Hanoi, Da Nang, and Ho Chi Minh City and Nha Trang cities. The large land fund is the factor that they are interested in with a view to expanding the urban areas later, especially those along the long sea coast.
For foreign investors, with a population of 100 million, the demand for housing in the country is very great, said Dr Su Ngoc Khuong, senior director of Savills Vietnam. The average GDP growth of between 6 and 7 percent for many years is also a good opportunity.
Despite difficulties in legal issues and land funds, Vietnam is still considered a hot spot in the real estate market, he said.
Currently, the production, business and service sectors are facing difficulty due to the COVID-19 pandemic. Therefore, the cash flow will flow into the stock market.
However, not everyone knows how to invest in stocks, giving opportunity for the real estate sector, Khuong said, adding that it is not easy to succeed in any investment.
According to the expert, investing in the real estate and stock markets continues to be the choice of many investors in the next two years because Vietnam and other countries in the world are still struggling with pandemic control. But investors should be careful when pouring capital into the real estate market.
The demand for housing in the real estate market is unlikely to decrease due to a lack of supply in different segments. Thus, it was necessary for investors to consider their business plan because the benefit could not offset the interest rate if they borrow loans from the banks, he said./.
