Property

New trends seen in Hanoi’s real estate market include expansions to the capital’s outer reaches and the development of branded houses of high quality in its downtown area. Real estate will remain an attractive investment channel in the time to come despite the difficulties.

Apartments have been receiving the most attention in Vietnam’s real estate market in recent times, despite the impact of the pandemic, with high absorption rates coming from high demand for housing and investment. Apartment prices, however, are facing rising pressure as supply has been falling.

The prices of houses and certain types of real estate in most localities are on an upwards trajectory. Projects with central locations in major cities have very high prices, at up to VND650-800 million ($28,550-$35,145) per sq m. Despite the prices, however, transaction numbers continue to increase.

VnDirect has identified four factors that will drive demand in Vietnam’s residential real estate market in the second half of 2021 and into 2022.

If Vietnam can control Covid-19 this month, the country’s real estate market will improve to the end of the year and there may be a new wave of investment, as existing investors are waiting to launch products.

With Covid-19 stalling real estate transactions, buying and selling have shifted from offline to online and property technology (proptech) has become a major trend and increasingly popular.