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 idealdestination for investment, compared to other countries in the region, particularlyin the field of the real estate market.
According to experts from property consultant SavillsVietnam, there are many investment opportunities for individual investors whenparticipating in this market in 2022.
A survey conducted by Savills Vietnam revealed that realestate value has increased by 30-40 percent in most residential real estatesegments this year. In Vietnam, residential real estate still tends to increasein many areas, especially big cities and provinces despite the complicated pandemicsituation.
Investors tend to expand their investment into land funds insatellite cities around Hanoi, Da Nang, and Ho Chi Minh City and Nha Trangcities. The large land fund is the factor that they are interested in with a view toexpanding the urban areas later, especially those along the long sea coast.
For foreign investors, with a population of 100 million, thedemand for housing in the country is very great, said Dr Su Ngoc Khuong, seniordirector of Savills Vietnam. The average GDP growth of between 6 and 7 percent formany years is also a good opportunity.
Despite difficulties in legal issues and land funds, Vietnam isstill considered a hot spot in the real estate market, he said.
Currently, the production, business and service sectors arefacing difficulty due to the COVID-19 pandemic. Therefore, the cash flow willflow 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 easyto succeed in any investment.
According to the expert, investingin the real estate and stock markets continues to be the choice of manyinvestors in the next two years because Vietnam and other countries in the worldare still struggling with pandemic control. But investorsshould be careful when pouring capital into the real estate market.
The demand for housing in the real estate market isunlikely to decrease due to a lack of supply in different segments. Thus, itwas necessary for investors to consider their business plan because the benefitcould not offset the interest rate if they borrow loans from the banks, he said./.
