Vietnamese investors are shifting their interest from land to apartments

The country’s upcoming mass vaccination rollout leads experts to agree on a positive outlook for the real estate market in the next half-year 

As reported by Batdongsan.com.vn, the pageview and volume of Vietnam’s property listing have dropped in Q2 from the peak in Q1, but experts see bright prospects in the demand for real estate for the next half-year.  

Batdongsan.com.vn’s data showed a sharp decline in the interest in lands and projects within a 50-100 kilometre radius from Hanoi. Thai Nguyen, Ba Vi, Bac Giang, Bac Ninh, and Hanoi’s Quoc Oai district experienced drops of six, two, 35, 38, and 17 percent respectively.  

Despite the decrease in interest level and volume of property listings, numbers are still higher than those during the same period in 2020, indicating the market’s adaptability to the waves of outbreak. Comparing to 2020, interest jumped by 54 percent, 66 new projects emerged, and the volume of property listings increased by eight percent.  

Meanwhile, investors are shifting their interest from land to apartments, as Nguyen Quoc Anh, Deputy CEO of Batdongsan.com.vn, revealed at the Real Estate Market Report.  

Hanoi’s apartment market saw impressive growth, as interest level rose by 21 percent, the number of property listings jumped 22 percent, selling prices increased by 23 percent, and rental profit ranged from 4.3-4.5 percent.  

In May, searches for land lots in the northern provinces of Bac Giang, Bac Ninh, Ha Nam, Vinh Phuc and Quang Ninh fell 35-49 percent, while Da Nang City saw a 36 percent fall. Concurrently, searches for apartments grew in Hanoi by 12 percent and in Ho Chi Minh City by 8 percent. 

More: Vietnam’s 4th wave of Covid-19 takes a toll on the real estate market

Looking at the last six months of 2021, experts agree that the market will be heavily impacted by the upcoming mass vaccination campaign. Their assessment is based on the results of many countries, in which national vaccination rollouts led to growth in the economy and real estate.  

Moreover, the government is striving to push out the mass vaccination programme, with around eight million doses expected to arrive in July. The number of vaccinated people is likely to increase rapidly, and the government aims to have 50 percent of workers in big cities fully vaccinated in Q3.  

If such a scenario carries out according to schedule, real estate transactions are expected to grow at full speed in the coming months.