The US – China trade war would generate more opportunities than challenges for Vietnam’s real estate market, experts said at the recently held, Vietnam Real Estate Summit (VRES) in Hanoi. The annual event is organized by Vietnam’s property portal batdongsan.com.vn and saw real estate industry experts express optimistic views about Vietnam’s real estate market.
Economist Can Van Luc said the trade war would trigger a shift in production and Vietnam was among leading destinations. He cited findings of the American Chamber of Commerce that said one third of US companies in China had moved or planned to move parts of their production plants to other countries.
Luc noted that Viet Nam was the only emerging economy that did not see a decline in foreign indirect investment and investors were adjusting their portfolios over worries about risks that might arise from the trade tensions. Luc added that companies looking at Vietnam for their operations might consider increasing investment in real estate companies, property projects and the retail segment in Vietnam through mergers and acquisition deals.
Nguyen Quoc Anh, Deputy General Director of batdongsan.com.vn, said that the property market in the northern region of Vietnam. Industrial zones in Hanoi’s neighboring provinces, such as Bac Giang, Bac Ninh, Ha Nam and Vinh Phuc will see robust development in future years.
Quoc Anh predicted the property market would continue its stable development in 2019, fuelled by macro-economic stability. Despite land price fever in the early months of 2018, the market has moved back to a stable place and the mid-end apartment segment will continue to lead the market in 2019 and 2020.
Anh also said that technology would be a major development trend in the real estate market in coming years as smart homes become more popular and investors increase the use of advanced technologies in developing and marketing their projects.
Thuy Dung, director of real estate services firm CBRE Vietnam, said: “I remain positive about the property market in 2019 ~ 2020. However, the market will be more challenging, as the competition will grow fiercer for developers. This will benefit home seekers and investors as the market will have abundant products while prices will not increase much.”
Duong said the market development in 2018 was robust, beating earlier forecasts as the number of apartments opening for sale and the number of successful transactions did not see any significant decreases over the previous year.
CBRE statistics showed that a total of 65,000 apartments were added into the Hanoi and Ho Chi Minh City markets in 2018, and that around 45,000 units were sold, similar to sales in 2017. Dung anticipated that supply would increase next year and successful transactions would be at around 85%.