Two thrust factors for real estate market 2022

In a recently published strategic report, experts of Rong Viet Securities JSC (VDSC) said that the real estate industry will be relatively active in 2022 and contribute to the recovery of the industry base on two main factors. 

Firstly, the real estate supply is gradually improving with the expectation to satisfy investors to launch and sell projects to the market. Currently, legal issues are being removed. In order to shorten the time for approval issuing construction permits. Besides that, a high vaccination rate also helps investors to be more confident in launching sales events and contributes to the growth of the overall supply for the whole market. 
"The launch of the project creates a double effect in a positive direction. It helps bring cash flow from homebuyers to investors in the context that the demand to buy a house/property is still very strong in the background of low-interest rates and expectations of a fast growth rate of Vietnam in a long term". - VDSC 
CBRE Vietnam forecasting based on data shows that the supply in 2022 is estimated at 22,000 units (up 69% over the same period). Thu Duc city and Binh Chanh district are predicted to be the two localities for the majority of supply with 18,659 and 7,675 products. VDSC believes that delaying the sale of projects by investors from 2021 to 2022 will also contribute to next year's supply. For example, Khang Dien Housing Investment and Trading Joint Stock Company (KDH) has moved its plan to open and sell a project of 1,000 apartments in Binh Tan district from the last two quarters of 2021 to 2022. 

Second, the strong wave of public investment through infrastructure development in the 2021-2025 period is a significant force for the real estate market to develop in the coming time. 
The total estimate of the medium-term public investment plan for 2021-2025 is 2,870 trillion VND (120 billion USD), increasing 43% compared to 87 billion USD in the 2016-2020 period. 

According to VDSC, "The government will accelerate the disbursement of infrastructure from 2022 to recover the economy after the COVID-19 shock in the period 2020 - 2021. In that situation, real estate businesses with plain land will benefit mainly from the price increase in areas with many nearby infrastructure projects such as in Ho Chi Minh City, Hanoi, and satellite cities."

By Vietnambiz.com