09:36 (GMT +7) - Monday 17/06/2019

Property

Real Estate Forum 2019 held in Hanoi

Released at: 13:40, 17/05/2019

Real Estate Forum 2019 held in Hanoi

Photo: Ngoc Lan

Forum hears of prospects for the real estate market into the future.

by Ngoc Lan

In 2019, in the context of abundant capital, rising numbers of domestic and foreign investors, and good growth prospects in the residential market, only reputable investors deploying quality projects will gain market share, the Real Estate Forum 2019 with the theme “Real Estate Investment Trends in 2019” held on May 16 in Hanoi heard.

Mr. Hoang Quang Phong, Deputy Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said that investment opportunities in the real estate sector are booming, so in 2020 investors and real estate developers also need to be careful of the risks that may be encountered, especially the risk of climate change, rapid behavioral change, and political risk. “In the context of fierce competition, developers need to know more about segments and have a more global perspective to determine the direction of investment,” he added.

Mr. Matthew Powell, Director of Savills Hanoi, said that real estate is generally the biggest asset reserve channel with a value 3.5-times the total global GDP.

According to Savills’ figures, the total real estate value worldwide as at the end of 2017 stood at $280.6 trillion, with about 78 per cent of value coming from residential real estate. Meanwhile, the total value of all the gold in the world was only about $7.7 trillion and total global GDP was about $78.3 trillion, or 30 per cent of the value of real estate.

“Stocks and gold increased faster than real estate, but the development of emerging economies was synonymous with increased capital value, and real estate was considered a safe capital investment channel,” Mr. Powell noted.

Mr. Nguyen Tran Nam, Chairman of the Vietnam Real Estate Association (VnREA), believes that the greatest advantage for Vietnam’s real estate market is the huge demand and liquidity. “Our market will be very healthy, as urbanization will remain commonplace in the medium and long terms,” he added. “According to calculations, an average of 1 million people a year move from rural areas to urban areas and people like to save money to buy houses. This is a huge opportunity for the market.”

From a State management perspective, Mr. Nguyen Manh Khoi, Deputy Director of the Housing and Real Estate Market Management Agency at the Ministry of Construction (MoC), said that mechanisms relating to real estate all stem from the practical situation, including forecasts. “State agencies have been more aggressive in managing real estate investments, so businesses have worked effectively,” he said. “Supply is also more diverse compared to 2017 and 2018, when only high-end real estate was the focus of investment, leading to fears of a real estate bubble emerging.”

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