Property

The Mekong Delta’s Long An province currently has 28 industrial parks and 32 industrial clusters. With a strategic location as a gateway connecting the Delta and the southern region, a shared border with three districts in Ho Chi Minh City, and synchronized investment infrastructure and attractive investment policies, Long An ranks second in attracting large FDI capital sources and is expected to top the list this year. It has increasingly proven its position as an attractive destination for domestic and foreign investors, with industrial real estate to benefit.

To implement the provisions of the Law on Housing, the Ministry of Construction is urging localities to urgently build and approve the housing development program for the 2021-2030 period. There are currently a number of localities that have reversed the process by not approving the housing development plan before the housing development program.

According to a plan to adjust the general planning for Hai Duong city in northern Hai Duong province by 2040, the city will be developed with a focus on riverside urban areas, while two more goals have been added: becoming a green, smart city, and a city ready to respond to climate change. Its transport network will be developed towards increasing inter-regional connectivity, so that it becomes an important traffic hub in the Red River Delta.

According to the Vietnam Real Estate Association, although the real estate market is improving around the country it will face many problems in the long-term, such as inflation pushing up prices and the appearance of legal issues. Mr. Nguyen Quang Tuyen from the University of Law said there are 82 laws and decrees relating to real estate, such as the Law on Real Estate Business, the Law on Housing, and the Law on Investment, but they are inconsistent and out of synch with a changing market, making it difficult to implement the National Housing Development Strategy.

Housing prices in Hanoi and Ho Chi Minh City increased sharply in 2021, from 10-20 per cent, causing difficulties for people with demand to buy housing. According to analysts, the low supply of apartments, upgraded infrastructure, and recent upward trends in material prices are the main reasons behind rising prices.

Data on real estate price increases and decreases over the past ten years shows that prices are always the opposite of inflation. According to analysts, increases to real estate prices mainly depend on monetary policy, bank credit and interest rates, people’s incomes, and improvements to infrastructure.