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Why does real estate remain an attractive investment channel?

Illustration.

Real estate – a market attracting significant cash flow

Brokers’ Association Vietnam real estate (VARS) has just reported on real estate market Quarter I. Accordingly, this unit assessed that while the business and service industries in general face many risks, especially after geopolitical events, Vietnam’s real estate is still an attractive market for inflows. substantial money.

Real estate also rose to No. 2 position (in 2021, real estate ranked 3rd) attracting foreign direct investment, reaching nearly 600 million USD. The market value of real estate mergers and acquisitions (M&A) in the first quarter was the highest in 5 years, according to the first quarter investment capital market report of Cushman & Wakefield.

Recorded in the first 3 months of the year, real estate businesses have spent nearly 1 billion USD to acquire projects, nearly equal to the number recorded throughout 2017, 2018.

The first quarter also witnessed a local land fever in some localities with information on infrastructure planning such as airports, industrial parks, roads and bridges… This phenomenon is being rectified by the authorities. , in order to ensure a healthy and efficient market development.

The real estate market is “supported” by many factors

According to the Vietnam Real Estate Brokers Association, there are a number of main reasons that make real estate an attractive investment channel. Accordingly, Vietnam’s infrastructure is being improved day by day, especially in big cities such as Ho Chi Minh City, Hanoi and neighboring provinces and cities.

“Highways as well as connecting roads, airports … are creating a new face for the country. In the structure of real estate value, infrastructure plays a significant role, besides intrinsic value. of that real estate”, the Vietnam Real Estate Brokers Association said.

Besides, public investment is expected to be the driving force to boost the economy in general and the real estate market in particular. According to the report, the Ministry of Transport alone in the first quarter of 2022 disbursed nearly 7,500 billion VND for important infrastructure projects across the country.

It is expected that the ministry will disburse about VND 50,300 billion in 2022, focus resources, drastically direct to accelerate the progress of key infrastructure projects, strengthen regional, inter-regional, regional connectivity, international, especially important traffic infrastructure works such as the project to build a number of expressway sections on the North-South East route in the period 2017-2020; My Thuan – Can Tho expressway project; Long Thanh international airport; soon put into operation a number of urban railway lines in Hanoi and Ho Chi Minh City.

Why does real estate remain an attractive investment channel?  - Photo 1.

Real estate is still a market attracting significant cash flow. Illustration – Photo: Dan Tri.

In addition, the Vietnam Real Estate Brokers Association also evaluated the support package of nearly 350,000 billion VND, of which nearly 114,000 billion VND is for infrastructure projects, 110,000 billion VND is for preferential policies that businesses will create. All efforts to help the economy recover soon, improve the purchasing power of consumers, thereby promoting the sustainable development of the real estate market.

“Besides, Vietnam is considered a country that maintains a good growth rate, has a stable political and social situation for a long time, creating a remarkable competitiveness of the Vietnamese economy. Foreign direct investment, in which the real estate segment has grown steadily in recent years, is a clear proof,” the Vietnam Real Estate Brokers Association pointed out.

Market trend

Forecasting the real estate market in 2022, VARS expects new supply to increase compared to 2021.

“The overall growth of the market will be more tightly controlled by the mechanisms and policies of the high-end segment and land plots will still have good absorption, because it is more suitable for the demand for shelter assets. price in this area will continue to increase, although it may not be as strong as in the previous period”, the Vietnam Real Estate Brokers Association forecast.

Also according to the Vietnam Real Estate Brokers Association, the price of affordable and possibly even mid-end apartments will increase more slowly, to maintain absorption.

“Resort real estate and tourism real estate will be an attractive investment attraction in 2022, with a pioneering role in promoting urbanization,” said the Vietnam Real Estate Brokers Association.

Real estate prices continue to rise Real estate prices continue to rise

VTV.vn – The report of the Ministry of Construction on the real estate market shows that, in the first quarter of 2022, the average real estate transaction price of the whole market is always in an uptrend.

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