Property

According to Nguyen Chi Thanh, General Secretary of the Vietnam Association of Realtors (VARS), land fever is unlikely this year and land prices will be adjusted more reasonably thanks to sound control policies and the implementation of the social housing development program.

The Vietnam Association of Realtors (VARS) has warned that the policy of “closing the valve” on credit and corporate bonds will negatively affect real estate supply. It therefore recommends opening up capital to all industries, including real estate, and to have more regulations on businesses attracting foreign capital, investment products such as real estate investment trusts (REIT), real estate securitization, and saving funds for housing.

Investing in apartments in industrial areas is becoming a popular trend in Vietnam, as demand for renting and apartment prices are both on the rise. This is especially true in key provinces in terms of investment attraction, such as Bac Ninh, Bac Giang, Vinh Phuc, and Thai Nguyen in Vietnam’s north, which have many industrial parks and tens of thousands of foreign experts.

According to data from Batdongsan.com.vn, interest in land plots fell 18 per cent during April compared to March and 8 per cent year-on-year. Analysts believe that real estate credit policies and tightened planning for land plots are behind the decline in the trade of plots.

Two social housing projects are set to be implemented in northern Nghe An province with total investment of VND6.88 trillion ($295.89 million). They have nearly 6,500 apartments, providing accommodation for some 20,000 workers at the Nam Cam Industrial Park. Nghe An has identified these as key projects in synchronizing services and social infrastructure at the industrial park.

Vinhomes has set a goal of completing 500,000 social housing units over the next five years, with projects to be implemented on the periphery of major cities and provinces, including Hanoi, Ho Chi Minh City, Hai Phong, Quang Ninh, and Da Nang, among others. Each project will range from 50 to 60 ha or more and build what Vinhomes calls “Happy Homes”. This is the first “full utility” social housing model in Vietnam.