Vietnam’s real estate market are benefited by China–United States trade war. Manufacturing industry is so prosperous that the real estate demand is meeting a great demand in both residential and commercial. Part of Vietnam’s success in combatting Covid-19 can be attributed to a pandemic playbook developed in 2014 by the United States’ Center for Disease Control and Prevention and other leading organizations. As the virus quickly seeped out of China in early 2020, Vietnam’s swift actions to close its borders, schools, and businesses saved it from a serious outbreak. With the country essentially operating a fully functioning internal economy while the rest of the world remained in various forms of lockdown. As factories reopened and construction projects resumed, Vietnam’s real estate market recommenced its record run. Vietnam property | Hanoi Property | Ho Chi Minh City Property Industrial The star of the local real estate market is the industrial sector, which has been the beneficiary of a manufacturing boom. In recent years, companies such as Nike, Adidas, and Samsung have moved operations out of China and into Vietnam due to China’s increasing production costs and trade war with the US. Trade data backs up this shift, with Vietnam’s total exports to the US rising by 435% from 2010 to 2020. The market has also responded to the increased manufacturing demand, as Ho Chi Minh City (“HCMC”) industrial rents grew by 9.0% in 2019 and then by another 10.6% in the pandemic year of 2020 according to Cushman & Wakefield (this article will predominantly focus on the HCMC market, as the city’s GDP accounts for 20-25% of the country’s total economic output). Residential Construction of apartment buildings in Ho Chi Minh City, Vietnam.Construction of apartment buildings in Ho Chi Minh City, Vietnam. AFP VIA GETTY IMAGESOn to Vietnam’s housing market, which has also seen unprecedented growth in recent years. As local Vietnamese have limited investment options outside of the housing market, rampant demand for apartments has exceeded the supply of units, with many new developments selling out shortly after sales launch. According to Cushman & Wakefield, apartment prices in HCMC have risen in response and grew by a staggering 90% in three years from 2017 to 2020, including by 12.8% in 2020 alone. While demand from foreign investors is one of the factors pushing the market, majority of the growth comes from Vietnamese citizens (in any new apartment development, foreigners are only allowed to own up to 30% of the total units). As such, the country’s economic progress coupled with a rapidly expanding middle class are the primary demand drivers for the expanding housing market, with few signs pointing to a slowdown anytime soon. Prospect of Vietnam property Many investment seminars are held in overseas markets and welcoming investors worldwide to make their favorable investment there. It is estimate that the real estate industry in Vietnam will continue booming in the further few years.
