Mr. Matthew Powell, Director of the Hanoi office of Savills Vietnam, spoke with VET about the development of the market over the last 20 years.
Savills is marking 20 years in Vietnam’s real estate at the moment. What contributions has it made to the market over the two decades?
During the past 20 years Savills has participated in most of the development cycles of the real estate industry in Vietnam, experiencing the ups and downs of the market. As a real estate consulting firm we have accompanied investors, providing them with information on the market to help them determine the direction their investment should take and how to grow. We also advise them when policies and laws change, so they remain up-to-date and can adopt an appropriate investment direction. Savills has also made a series of recommendations to lawmakers on policies suitable with the volatility of the market.
For 20 years, although the real estate market has gone through many ups and downs, Savills has bolstered its reputation. There are many people who work at Savills and we believe that they have gained valuable experience while being here.
What has impressed you the most about Vietnam’s real estate market in the last 20 years?
After 20 years in Vietnam what I remember the most is that although the market is constantly fluctuating investors are more dynamic and active and have the experience to overcome the difficulties quickly and develop further. 2010 was a difficult period for the real estate market, but many investors overcame the problems. The government has also accompanied investors and introduced a lot of policies to encourage them and support the property market’s development.
How would you compare Vietnam’s real estate market with other regional markets?
It’s not easy to compare Vietnam’s real estate market with others over such a long period. But I see that Vietnam’s potential remains and it is no less vibrant than Hong Kong or Singapore. Despite being a latecomer, Vietnam’s property sector has learned a lot and developed. Those involved in the sector understand the importance of research and surveys. It’s true to say that the market has gone “from zero to hero”.
And how is the market today?
The real estate market will certainly be more stable this year, with fewer fluctuations than in previous years. Although many have said the warming market may create a bubble, I believe that the government will adopt measures to avoid such a scenario.
- Matthew Powell