Vietnam's Mid and High-End Real Estate: The Preferred Choice for Individual Investors

Vietnam's Mid and High-End Real Estate: The Preferred Choice for Individual Investors

In the rapidly evolving Vietnamese real estate market, individual investors are increasingly gravitating towards mid and high-end segments, according to Duong Thuy Dung, Executive Director of CBRE Vietnam. These segments are currently the market's bright spots, attracting considerable interest due to their promising prospects for the current year and beyond.

During the "Identifying Business and Investment Highlights in 2024" seminar, Dung pointed out that industrial real estate is the brightest spot in the market. This sector's potential for success is high, with a success rate of up to 50%. In contrast, the commercial real estate market, despite being of interest to investors, has a lower success rate of only 5-10%. For instance, in Ho Chi Minh City, office spaces boast a 95% occupancy rate, and the robust business outcomes make them a sought-after investment.

Dung further explained that the failure of certain products in the real estate market stems from valuation discrepancies, legal issues, and ownership structures.

When asked which segment is the best investment in 2024, Dung emphasized that it depends on the total investment amount, as the real estate sector encompasses a wide range of products and segments. Institutional investors continue to favor commercial and industrial real estate.

"For individual investors, the residential sector, particularly mid and high-end segments, are attracting the most interest and are considered the market's bright spots for this year and the years to come," Dung stressed.

Dung also mentioned that investors have the opportunity to secure properties at reasonable prices. Comparatively, mid-range properties of similar quality in Ho Chi Minh City are about 30% higher in price than those in Hanoi. During 2018-2019, traditional investors from the North investing in the South are now returning to the Northern market, finding more opportunities there.

According to CBRE, primary apartment prices in Hanoi are gradually catching up to those in Ho Chi Minh City. The primary real estate prices in both Hanoi and Ho Chi Minh City remain high due to limited supply. Secondary apartments in Hanoi continue to see significant price increases, while prices in Ho Chi Minh City have risen slightly.

CBRE predicts that the apartment supply in Hanoi is expected to recover in 2024, with vibrant sales activities. The absorption rate is anticipated to remain strong. Primary apartment prices in Hanoi and Ho Chi Minh City are expected to continue rising due to the introduction of more high-end supply to the market.

Meanwhile, Bui Quang Anh Vu, CEO of Phat Dat Real Estate Development Corporation, noted that before the COVID-19 pandemic, most real estate investors, who were professionals, bought properties for leasing. During that period, with bank loan support and profitable real estate investments, many people rushed into the market, causing prices to skyrocket from the mountains to the islands.

"The onset of COVID-19 and tightened real estate lending led to a market downturn. Investors began losing confidence, and real estate values declined," Vu shared.

However, Vu believes that with the new economic cycle, the real estate market remains a viable investment channel. Proper management and direction are crucial to ensure sustainability and benefit a broader audience.

According to BIDV's Chief Economist, Dr. Can Van Luc, the real estate market needs time to recover, but Vietnam is expected to bounce back faster and better than other countries due to its strong demand.

To revitalize the real estate market, Dr. Luc suggests aggressively improving the business environment concerning capital and land issues, revising laws, enhancing the banking system's restructuring, and promoting corporate bond issuance.

Notably, Dr. Luc advises real estate companies to consider lowering prices instead of the recent trend of price increases, aligning with the broader interest of making housing more accessible to the general population.

For more information about real estate projects in Ho Chi Minh City and neighboring provinces, please contact FTT LAND!

------------------------------------------
FTT REAL ESTATE COMPANY

Headquarters in Vietnam: EA4-01.01 Eratown Duc Khai, Nguyen Luong Bang, Phu My Ward, District 7

Receive consignments for buying, selling and renting apartments, updating the best prices in the market

HOTILINE: +(84) 81.299.1003

┃For inquiries: 黎娟娟/Winnie - FTT Land Real Estate

┃Vietnam Hotline: (+84) 902.823.622 (viber/zalo/Whatsapp)

┃Taiwan Hotline: (+886) 906.975.509

┃ID (Line/IG/Tiktok): winniele88888

┃Wechat ID ：Winniele88888888

┃Watch more on YOUTUBE: FTT REAL ESTATE

┃Website: www.fttland.com