Property

The impact of Covid-19, inflation, and the Russia-Ukraine conflict are among the key factors behind investor cash flows seeking shelter in real estate. Many localities have also begun to focus on developing industrial parks to attract FDI and at the same time invest in tourism development to quickly recover their real estate industries post-pandemic. Such expectations have led investors to focus on acquiring land funds.

The Bac Giang Provincial People’s Committee has approved planning for a series of new urban areas and residential areas, including many large-scale projects on as much as 125 ha. Under the approved planning, the northern province’s urbanization rate will stand at 55-60 per cent by 2030, with 29 urban centers, while 23 urban areas are planned, featuring services associated with industrial parks, amusement parks, resorts, and sports centers.

There have been many M&A deals in Vietnam’s real estate sector in the opening months of 2022, but foreign businesses continue to face barriers to involvement in regard to laws or differences in business practices.

Investors are paying greater attention to the real estate market in north-central Nghe An province as it has the potential to develop resort tourism. With fast growth in the past few years, along with mechanisms and policies to attract investment, the province’s real estate market is expected to be remain attractive for investors in the time to come.

The condotel market was severely affected by the Covid-19 pandemic after exploding in 2016-2018, which led to supply exceeding demand. Many localities have ended the licensing of new condotel projects. According to Mr. Nguyen Van Dinh, General Secretary of the Vietnam Association of Real Estate Brokers (VAREB), the suspension or tightening of control over condotel projects is necessary for the market.

South-central Binh Dinh province is to have 61 industrial clusters under its industrial cluster development plan to 2025 and vision to 2035. In 2022 and subsequent years, the province will build 20 new industrial clusters on a total area of more than 620 ha.