Vietnam’s growing economy is having a knock on effect to the country’s property market.
Not a day goes by without Vietnam being in the news. Why? Well its economy is propelling ahead. In 2016 is led the ASEAN pack being the fastest growing at 6.2 percent. Accounting firm PricewaterhouseCoopers does not anticipate for this to slowdown anytime soon predicting that this South East Asian powerhouse will grow yearly by 5.1 percent. This would make Vietnam one of the fastest growing in the world.
PwC also rank Vietnam as the 32nd largest economy in their report, ‘The World in 2050 – The long view, How will the global economic order change by 2050?’. Looking ahead, PwC expect this ranking to rise to 20 by 2050.
So how do these figures influence the property market? Well Ho Chi Minh City has one of the best office markets. Performing at an impressive 97 percent occupancy for the final quarter of 2016 according to real estate firm Savills. The demand is from companies within the finance, insurance and, not surprising, real estate industries. All wanting modern facilities in contemporary buildings.
Vietnam’s growing middle class is also influencing a multitude of areas of the economy and property market from industrial to residential. Including being a catalyst for increased car ownership as well as more disposable income to enjoy. Business subsequently blooms. A growing number of online retailers are emerging responding to demand. Posing a threats to the traditional retail industry, there is an increase in the need for warehouses and logistics for the supply chain of this new way of shopping.
Plus the extra income is driving the thirst to upgrade accommodation and own investment properties that both help to boast the residential market. On top of this, the middle classes are striving for more education. Another service that will need housing. With all of these advances it is no wonder that Vietnam’s property market is receiving global attention.
