The property market will bounce back soon and develop strongly in 2021 and 2022 (Illustrative photo: VNA) Hanoi (VNA) - Though the COVID-19pandemic may linger into the end of 2020, the property market will bounce backsoon and develop strongly in 2021 and 2022 thanks to the Government’s resolveand timely action, according to Savills Vietnam Managing Director NeilMacGregor.
He noted that over the last 25 years, even amideconomic crises, Vietnam has remained among the few countries sustainingrelatively fast growth.
Since Savills Vietnam arrivedin the country, he said he has long been impressed with the local propertymarket’s development.
Explaining its history, he cited data from theGeneral Statistics Office showing that Vietnam’s economy grew more than 9percent in 1995 (9.54 percent) and 1996 (9.34 percent). Inflation, meanwhile,was curbed from 12.7 percent in 1995 to 4.5 percent in 1996 and 3.6 percent in1997.
The strong GDP growth made people confident abouta bright economic future, which fuelled real estate prices.
The market has experienced many ups and downs, beginningan upward trend in 2000 and booming in 2001 and 2002, when GDP rose 6.79percent and 6.89 percent year-on-year, respectively.
This strong development continued in 2004-2007,when foreign capital was being continually channelled into real estate andState policies boosted the market.
Both prices and transactions surged in thoseyears, making real estate an attractive investment channel for many. During thecountry’s two real estate “fevers” in 2001-2003 and 2007-2008, land and housingprices rocketed to levels beyond the reach of low- and middle-income earners inmajor cities like Hanoi and HCM City.
The market suffered a setback from mid-2008, however,with property prices falling 30-40 percent in just a short period of time, withinventory in 2012 surpassing 100 trillion VND (4.3 billion USD at currentexchange rates). Many real estate businesses faced bankruptcy, while gallopinginflation prompted the central bank to tighten monetary policy.
Since 2012, State agencies have issued multiplepolicies and stimulus packages to attract investment and tackle difficulties inthe property sector, facilitating improvements in the market.
In particular, he went on, developers of socialhousing and low-cost commercial apartments benefited from reduced financialobligations, while a credit package of 30 trillion VND that provided loan to low-incomeearners to buy houses helped the local market rebound.
The market has also witnessed a boom in the high-endand resort segments, which has helped give a facelift to localities withgeographical and natural advantages, like Ba Ria-Vung Tau, Da Nang, Thanh Hoa,Quang Ninh, and Hai Phong.
Vietnam has been one of the fastest growingcountries in the region since 2018. The World Bank recently predicted GDPgrowth of 3 percent and that the economy will recover relatively quickly in2021, at 6.8 percent.
He said that the country’s real estate markethas been “tested” over the course of 25 years and will easily weather the tryingtimes caused by COVID-19 and move faster forward./.
He noted that over the last 25 years, even amideconomic crises, Vietnam has remained among the few countries sustainingrelatively fast growth.
Since Savills Vietnam arrivedin the country, he said he has long been impressed with the local propertymarket’s development.
Explaining its history, he cited data from theGeneral Statistics Office showing that Vietnam’s economy grew more than 9percent in 1995 (9.54 percent) and 1996 (9.34 percent). Inflation, meanwhile,was curbed from 12.7 percent in 1995 to 4.5 percent in 1996 and 3.6 percent in1997.
The strong GDP growth made people confident abouta bright economic future, which fuelled real estate prices.
The market has experienced many ups and downs, beginningan upward trend in 2000 and booming in 2001 and 2002, when GDP rose 6.79percent and 6.89 percent year-on-year, respectively.
This strong development continued in 2004-2007,when foreign capital was being continually channelled into real estate andState policies boosted the market.
Both prices and transactions surged in thoseyears, making real estate an attractive investment channel for many. During thecountry’s two real estate “fevers” in 2001-2003 and 2007-2008, land and housingprices rocketed to levels beyond the reach of low- and middle-income earners inmajor cities like Hanoi and HCM City.
The market suffered a setback from mid-2008, however,with property prices falling 30-40 percent in just a short period of time, withinventory in 2012 surpassing 100 trillion VND (4.3 billion USD at currentexchange rates). Many real estate businesses faced bankruptcy, while gallopinginflation prompted the central bank to tighten monetary policy.
Since 2012, State agencies have issued multiplepolicies and stimulus packages to attract investment and tackle difficulties inthe property sector, facilitating improvements in the market.
In particular, he went on, developers of socialhousing and low-cost commercial apartments benefited from reduced financialobligations, while a credit package of 30 trillion VND that provided loan to low-incomeearners to buy houses helped the local market rebound.
The market has also witnessed a boom in the high-endand resort segments, which has helped give a facelift to localities withgeographical and natural advantages, like Ba Ria-Vung Tau, Da Nang, Thanh Hoa,Quang Ninh, and Hai Phong.
Vietnam has been one of the fastest growingcountries in the region since 2018. The World Bank recently predicted GDPgrowth of 3 percent and that the economy will recover relatively quickly in2021, at 6.8 percent.
He said that the country’s real estate markethas been “tested” over the course of 25 years and will easily weather the tryingtimes caused by COVID-19 and move faster forward./.
VNA
