Vietnam sees steady economic growth, housing market gains momentum

It is steadily recovering after growing only 2.6 percent last year, which was the slowest climb in decades

Vietnam previously set its economic growth target to six to 6.5 percent, but according to Nguyen Chi Dung, the country’s planning and investment minister, the nation is now aiming for a seven-percent expansion.

It has reportedly experienced a GDP growth of 7.7 percent in Q2, backed by strong export growth. It is steadily recovering after growing only 2.6 percent last year, which was the slowest climb in decades.

For this to be possible, the YoY economic growth for Q3 has to reach nine percent, and 6.3 percent in Q4, according to CNA. 

More: Vietnam sees 7.7% economic growth in Q2 2022, the fastest expansion in 11 years

A steady improvement in market confidence and demand is helping the country’s real estate sector to gain momentum. This is in the wake of the COVID-19 pandemic, when house prices and rent have fallen by double digits. 

Moreover, Vietnam has seen a significant increase in foreign homebuyers since 2015, reported Global Property Guide.

The cost of apartments in Ho Chi Minh City went up 15.5 percent YoY in Q1 2022, in inflation-adjusted terms, compared to a 0.2 percent YoY decline in Q1 2021. House prices increased 5.2 percent QoQ in Q1 2022.

On 14 July, Prime Minister Pham Minh Chinh emphasised the importance of removing “bottlenecks” in the real estate sector to make sure the property market is safe.

VietnamPlus reported that outlined the deficiencies, constraints, and inadequacies of the market and urged ministries, industries, and localities to foster a favourable environment for the real estate market, giving special consideration to the market segment that serves social security. 

According to him, market regulations must be upheld, but the State must uphold its managerial responsibilities to stop market manipulation.

He also emphasised the need to support strategic infrastructure development to create new development opportunities and boost the real estate market’s motivation.

He tasked the Ministry of Construction with examining and improving the real estate-related legal system to remove bottlenecks and promote the steady and healthy expansion of the industry.

The Property Report editors wrote this article. For more information, email: [email protected].