JLL report to mark Reunification Day notes that property is now considered a primary industry and plays an important role in socioeconomic development.
Vietnam’s real estate sector has boomed in the 30 years since “doi moi” (renovation) was introduced in 1986 and played an important role in the country’s socioeconomic development, according to a report released on April 30 by Jones Lang LaSalle (JLL) to mark the 41st anniversary of Reunification Day.
JLL experts said that over the last four decades the country has gone from a backwater to a major Asian investment hotspot.
The real estate market, most notably in Ho Chi Minh City, the country’s economic hub, and Hanoi, the political capital, developed rapidly soon after the Law on Real Estate was introduced in 2003. Strong economic growth, rising foreign investment and a booming middle class over recent years have led to healthy demand for real estate.
Vietnam’s economy went through many difficulties after reunification in 1975, with almost two years taken to restore service to the backbone north-south railway line and associated infrastructure, under a five-year plan to kick-start modernization adopted in 1976.
Doi moi was then launched in 1986 to push economic growth, helping the country usher in a new era of development.
Since then the country’s real estate sector has seen a great many changes for the better. Ten years after the introduction of doi moi the first building complex opened in Ho Chi Minh City together with the first shopping and entertainment complex, the Saigon Superbowl.
Two years later, in 1998, the Phu My Hung New Urban Area was introduced to the Ho Chi Minh City market, including the first modern township in Vietnam, My An My Canh. In 2003 the first high-end apartment building for sale, The Manor, opened in Ho Chi Minh City. 2010 then saw the opening of Bitexco Financial Tower, which remains the tallest building in the city, at 263 meters.
Vinhome Central Park was recently launched as the largest mixed-used development in Ho Chi Minh City and confirming the boom in real estate.
After years of development, property is now considered a primary industry. Thanks to relaxed property ownership legislation that came into effect on July 1, 2015, more than 1,000 apartments had been sold to foreigners as at the end of last year. This year some 25,000 new apartments are expected to be launched in Ho Chi Minh City, with the high-end segment accounting for 30 per cent.
In the future Ho Chi Minh city’s real estate market will continue to experience many changes, with the building of the city’s first urban railway line, the North-South Expressway connecting it with Hanoi, and Vincom Landmark 81, the tallest building in the city, at 462 meters.