The flourishing middle class and a gradual transition from the communist economy to entrepreneurship and foreign investment have positively impacted the real estate sector in Vietnam. The overall change in the financial profile has created a need for more residential, retail, commercial and office spaces in the country. Real estate market research reports consulting brings about the fact that investment in real estate in Vietnam grew by 13% in 2016 in comparison to 2015.
Recent real estate business review in the Asia-Pacific region showed that Vietnam is an emerging player in the real estate sector. Technology has greatly augmented modern infrastructure. Use of technology became inevitable when foreign investment in real estate started increasing as real estate websites, and online portals reached out to buyers and investors across the border. Ho Chi Minh City is at the center of economic activities in Vietnam. Investors report that office rentals in Ho Chi Minh City are higher than in Bangkok. Typical real estate in Vietnam consists of cramped apartments and decent shopping complexes. However, with developed cities like Ho Chi Minh City and Hanoi many new projects are commencing which will bring about modern infrastructure. As the recent global popularity of smart cities increases Vietnam too is investing in sustainable development.
Smart cities require efficient public transportation like metro that connects major locations at an affordable cost. This will lead to commercialization of surrounding areas thereby developing modern infrastructure.
Energy conservation is on the rise now and so is its importance. Many famous cities globally have incorporated this in their core beliefs and have built on it. Vietnam is also catching up with intelligent building management systems from Siemens that aim to reduce energy consumption almost by 30% as tests in Taipei show. So far hundreds of buildings have been fitted with this system such as the German House in Ho Chi Minh City, in residential buildings and resorts. Also, Buro Ole Scheeren has unveiled Skyscraper Complex in Ho Chi Minh City featuring Sky Forests.
Management systems that are universal to all cities are being developed. This is being done because the needs of Hanoi are different from that of Ho Chi Minh City and cities need to prioritize them. Technologies offer solutions to execution of master plans but until there is a proper structure of demands they cannot be fulfilled.
Many public recreation attractions are also being set up such as Hanoi Lotus Centre built by DeciBel. Samsung and Choon Soo Ryu have developed a community center in Thuyhoa as part of the social development project ‘the Nanum Village’.
Seimens has emerged at the forefront of real estate developments in Vietnam. It is working with the Ministry of Transport and different city governments. Other property developers are also extensively adopting technology. Dat Xanh Group, headquartered in Ho Chi Minh City, has consistently been ranked among the best in Vietnam and has carried its excellence to its real estate subsidiary. FLC, headquartered in Hanoi, is among the biggest real estate companies in Vietnam and has won considerable number of accolades for its services. Vingroup, based in Hanoi and owned by the richest person in Vietnam, is among the biggest Vietnamese business houses and has real estate subsidiaries like VinHomes and VinPearl.
The country has a bright future in terms of real estate evident by the fact that foreign countries are investing in its real estate. The top 5 countries that invest in Vietnamese properties are Japan, Singapore, South Korea, US and Hong Kong. These international partnerships are beneficial not only for the real estate sector but also for the country in general. Vietnam’s growth is similar to that of China’s and it is emerging as a competition to China because of its comparatively cheaper output products and services. However, observing the rate of commercialization experts believe that the Vietnamese real estate sector has a lot of potential for growth.
Key Topics Covered in the Report
Real Estate Market Research Reports
Real Estate Industry Analysis
Market Research Reports for Real Estate
Real Estate Industry Research Report
Real Estate Market Research Reports Consulting
Real Estate Business Review
Real Estate Industry Research and Market Reports
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Ankur Gupta, Head Marketing & Communications