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Sunday, February 25, 2024

Real estate market forecast to turn vibrant in next two years

The Saigon Times

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HCMC – Savills Vietnam has forecast the domestic real estate market will be able to get back to its high-growth path in the next two years despite current economic challenges.

Speaking on November 23 at a press conference on the real estate investment landscape in 2023 and beyond, Neil MacGregor, CEO of the real estate management and consultancy company, said, “Despite economic headwinds, the robust demand for housing remains strong due to nationwide urbanization efforts, a growing population, and essential housing needs in major cities.”

He added the Government had made efforts in the past two years to cope with these issues, instilling confidence in a better future.

Vietnam’s real estate market has shown resilience, particularly in the face of delays in project approvals and a shortage of new housing supply. While the sluggish pace of project approvals has dampened market sentiment, strong demand persists due to continued urbanization, said MacGregor.

Savills Vietnam’s report also shed light on HCMC’s thriving office market, which boasts a recovery in occupancy and rent growth, making it a standout performer in the Asia-Pacific region.

The report highlighted a surge in foreign investors directing capital into Vietnamese real estate through share acquisitions. Investors from Asian countries like Singapore, South Korea, Thailand, Malaysia and Japan are actively participating, with expectations of increased investments in the coming years.

Middle Eastern investors are also seen as potential contributors to the real estate sector.

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