The Real Estate Market in Vietnam: A Surging Interest from Local and Foreign Investors
There has been a significant increase in the number of searches and inquiries about real estate projects in Vietnam. According to Google Trend data from December 31, 2024, interest in real estate has risen by 44% compared to the same period in 2023 and a remarkable 200% increase from 2022. Furthermore, almost all provinces in the country have shown search interest in real estate, indicating a broader market reach beyond the leading markets of previous years.
The doubling of interest in real estate compared to the market’s low point signifies a recovery in consumer confidence, according to Ms. Trinh Thi Kim Lien, Director of Sales and Marketing at Dat Xanh Services (DXS). This shift in sentiment has led to noticeable changes in customer psychology, behavior, and, consequently, capital flow.
A survey by DXS-FERI, involving over 1,400 respondents from Hanoi, Ho Chi Minh City, Binh Duong, Danang, Nha Trang, and Can Tho, revealed a diversification in customer behavior in 2024. While the primary trend remains buying property for personal use, accounting for 44.9% in 2024, there has been a notable shift towards other segments. The proportion of customers buying property for speculation has increased from 1.5% in 2023 to 9.1% in 2024, while those investing in long-term assets and rental properties have also increased to 24% and 22%, respectively.
Source: DXS-FERI
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Additionally, customers are making faster decisions when it comes to real estate transactions. The survey showed that 40.9% of customers took only 1-3 months to make a decision, compared to 18.2% in 2023. Conversely, only 6.1% needed more than a year, a significant decrease from 52.3% in the previous year. This indicates a strengthened confidence in the market, leading to quicker purchase decisions.
Mr. Nguyen Thai Binh, CEO of Dong Tay Land JSC, attributed the positive sentiment to Vietnam’s economic recovery, which has made buyers more open to investment. The government’s focus on infrastructure development, including the metro line 1, the ring road 3, the Long Thanh-Dau Giay highway, and the Long Thanh airport, has also played a crucial role in enhancing customer experience, especially for projects leveraging these new infrastructures.
Recognizing the changing market dynamics, developers are now offering more attractive sales policies, taking into account the financial capabilities and payment preferences of buyers. Some projects only require an initial payment of 30-50% within three years, with the remaining balance due later, a significant improvement from previous requirements of 70-90% upfront payments.
Mr. Huynh Thanh Hai, Vice CEO of ERA Vietnam, from the perspective of serving foreign buyers for many years, believes that the relaxation of conditions for overseas Vietnamese to buy properties has been a significant catalyst for foreign capital inflows into Vietnam’s real estate market. In the post-pandemic phase, Vietnam has received remittances of up to an estimated $20 billion, with approximately 20% directly invested in real estate, a substantial contribution, according to Mr. Hai.
Moreover, the advancement of technology has facilitated greater access to real estate information and opportunities. Instead of relying on traditional methods like flyer distribution, many projects now utilize digital platforms, attracting interest from local and international investors within days of their launch.
Mr. Nguyen Truong Son, CEO of iHouzz, emphasized the impact of digital transformation on the real estate industry. Traditional transaction methods and brokerage processes are being replaced by innovative technological solutions, and real estate businesses and brokers are embracing digital platforms to optimize costs, expedite transactions, and expand their customer reach.
Dong Tay Land’s representative shared that technology-driven sales now account for 70% of their total sales, a significant shift from 30% a year ago. Technology has been instrumental in reaching Vietnamese expatriates in Europe, America, Australia, and beyond, becoming the backbone of their sales strategy. As customers are increasingly present on social media platforms, brokers need to adapt their approaches to engage with them through these channels.
Thu Minh
– 11:21 09/01/2025
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