Vietnam reaches 10-year high in real estate interest

Demand for real estate has been growing strongly, with land prices spiking, particularly in areas with infrastructure planning news 

In the first quarter of 2021, Vietnam’s wealth of infrastructure planning news spread pushed interest in real estate to reach the highest rate the decade has seen, nearly its peak in 2006, reported Batdongsan.com.vn.  

Vietnam’s leading real estate website, Batdongsan.com.vn’s pageview experienced the highest rate over the last 10 years in the first three months of 2021. This tremendous amount of interest grew 37 percent higher than the same period last year.  

The website also made a new record in March 2021 with five million users, a 60 percent increase, along with 12.5 million visits. Such statistics indicate that real estate demand is strengthening and the market is attracting various investors.  

Ever since the arrival of COVID-19, the real estate market has been impacted but interest always bounced back after every wave. Batdongsan.com.vn’s website increased by 306 percent, 62 percent, and 378 percent, respectively, after the three COVID-19 waves in Vietnam.  

Moreover, transactions have spiked immediately after the Lunar New Year with real estate prices in new markets rising rapidly. The real estate was stimulated by various beneficial factors, including cheap money from low deposit interest rates, many F0 investors, infrastructure planning news, and an increase in the land price bracket.  

More: Sales of luxury properties revive Bali’s real estate market

In new markets where infrastructure planning has been announced, land prices jumped by 10-30 percent. In Central Vietnam, Da Nang land prices rose by seven percent, Tam Ky (Hoi An) increased by 30 percent, and Hue increased by 19 percent. Around the center of Hanoi, particularly, Ba Vi land prices increased by 76 percent, Hoa Binh by 102 percent, Hung Yen by 26 percent, and Quoc Oai by 20 percent in the first quarter 2021.  

Infrastructure planning news has been massively released, from the Western expressway system to the planning of satellite cities, airports, and coastal roads. This paves the way for liquidity and real estate prices.  

However, Mr. Nguyen Quoc Anh, Deputy CEO of Batdongsan.com.vn, said that there are places where land prices have jumped based on actual demand and potential, but some are blown up by rumors and can negatively affect the market.