Vietnam has received high marks for its response to COVID-19 and the country’s economy has begun to reopen. While real estate transactions were down in the first quarter of this year, several experts believe a Vietnam property market recovery is now on the horizon.
Su Ngoc Khuong, Senior Director of Savills Vietnam, told the Vietnam News Agency (VNA) that there are several positive signs in place pointing to a quick property market recovery. These include policies recently announced by the government that will assist firms impacted by COVID-19 and allow for investment to be quickly disbursed.
Demand for real estate in Vietnam continues to be strong and this will be important for the sector’s recovery as well, Le Hoang Chau, President of the Ho Chi Minh City Real Estate Association, noted.
The first quarter of 2020 saw real estate market supply and transaction volume at their lowest levels since 2016. According to the Ministry of Construction, the amount of property transactions fell 60 percent year-on-year. Despite this, CBRE Vietnam found that average housing prices rose during the first quarter of this year by nearly four percent.
Ministry of Construction Housing and Real Estate Market Management Department Spokesperson Nguyen Trong Ninh explained to VNA that the housing price increase could be a good sign for the market since it shows things are stable and demand hasn’t been negatively affected.
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Developers scale up for Vietnam property market recovery
Many Vietnamese property developers are starting to ramp up operations in their belief a property market recovery is imminent. Dot Property Southeast Asia Awards 2019 Developer of the Year winner Novaland Group revealed that it intends to hire a significant number of employees, Viet Nam News reported.
The media outlet also noted that Nam Group intends to create 500 new positions as it looks to sell 10,000 units at its award-winning Thanh Long Bay project. The development was named Best Innovative Complex Development at the Dot Property Southeast Asia Awards 2019. Nam Group also won Breakthrough Developer last year.