Property

Vietnam’s real estate market as a whole has seen positive signs in the fourth quarter of the year, with the supply index and demand for land and apartments increasing handily. Demand for residential land in some localities rose nearly 200 per cent, and was even higher in Ho Chi Minh City.

North-central Thanh Hoa province is to build six industrial clusters on a total area of over 357 ha, with main industry groups including garments, bedding, textile carpets, medical equipment, paper, fashion, footwear, and interior design items. Industry has been identified as the number one driving force of the province’s future growth.

In the context of interest rates not keeping pace with inflation, investors are tending to withdraw funds from banks and pour it into investment channels such as real estate, especially suburban real estate. The coastal real estate market in the Mekong Delta also boasts potential from a clean land fund being gradually exploited, and rising prices see it join suburban areas as a “gold mine”.

Hanoi is facing pressure from housing demand due to rapid population growth. The capital is currently implementing 149 housing projects, including 92 in commercial housing, equivalent to nearly 35 million sq m of floor space, and 57 in social housing, or 6.6 million sq m.

Ho Chi Minh City aims to increase its total housing floor space by at least 50 million sq m in the 2021-2025 period, with the area per capita to be at least 23.5 sq m by 2025. It needs nearly VND567 trillion ($24.5 billion) in investment and 974 ha of land to achieve the targets.

The central highlands’ Lam Dong province has decided to develop urban chains, a specialized urban model where the satellite revolves around a central urban area, instead of forming “compressed” cities that are less environmentally friendly. The province will develop four new urban centers in the 2021-2025 period and upgrade a number of existing urban centers, with a focus on Da Lat city.