Full steam ahead for Vietnam’s housing sector

Demand for luxury units in Hanoi and suburban homes across the country to lead growth momentum 

With the country ramping up its vaccination efforts, the government introducing strategic policy adjustments, and the consumer sentiment looking more favourable than ever, domestic and foreign developers have accelerated the construction of new developments.  

Among the developers that have resumed their operations is 2021 PropertyGuru Vietnam Property Awards’ Best Sustainable Developer CapitaLand Development, one of the premier Singaporean developers in Vietnam, who launched the Heritage West Lake (Hanoi) and Define (Ho Chi Minh) projects in November. Counting these new assets, the multi-award winner holds more than 7,300 units across 14 housing developments around the country, reported Vietnam Investment Review (VIR).  

The arrival of the new Covid variant in December has put a strain on the market, but major players are optimistic for industry revival in 2022, owing to the Vietnamese mindset of wanting to be homeowners and landowners, further propelling demand. 

In fact, developers have told VIR that they are confident that the investment flows will remain steadfast this year since the market has been showing positive signs for growth and recovery. 

Chief Executive Officer of Colliers International (Vietnam) David Jackson uncovered that homebuyers have now become more interested in properties in the suburbs, with the pandemic changing their habits and pushing them to look for open spaces where they can enjoy the outdoors. 

“We have attractive destinations such as Bao Loc, Dalat, and Ho Tram. From Ho Chi Minh City, it is easy to drive to these locations and homebuyers can find second homes here to get away from the city and enjoy the open space. This trend is expected to continue to grow post-pandemic,” said Jackson. 

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Yet, on the latest data published by Cushman and Wakefield Vietnam, Hanoi has made an unexpected comeback in 2022, recording the launch of 26,000 apartment units.

The Grand Hanoi by Masterise Homes, winner of Best Ultra Luxury Condo Development (Hanoi) at the recent PropertyGuru Vietnam Property Awards, revealed that all their units sold out in the first offering, setting a new standard for the segment’s prices in Hanoi. 

The addition of this new developer in the south, along with fellow award winners Hung Thinh Land Joint Stock Company and Phu Long Real Estate Corporation, will lay the foundation for higher-quality developments and will increase the median price in the area. 

The Gross Regional Domestic Product of Hanoi surged by 2.92 percent in 2021, less than the 4.18 percent growth in 2020, but the foreign direct investment flows rose by 10.6 percent to USD1.5 billion. 

Together with the completion of crucial transport projects in the city, the firm believes that these factors will drive further growth momentum in 2022 and beyond. 

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