Vietnam Properties is rising during the Pandemic, take more attention on Da Nang

[Ming Pao News] After countries have closed their borders for more than a year, many countries have begun to clear customs. Vietnam cleared customs earlier and plans to coexist with the virus. The market predicts that Vietnam’s GDP may reach US$500 billion by the end of 2021. Against the background of world economic recovery, Vietnam’s economic growth will be boosted. When major economies sign various free trade agreements with Vietnam, as a highly open economy, Vietnam will definitely receive positive reviews in terms of investment capital flows, market expansion opportunities, and property prices by the end of 2021 and in the following years. Residential property prices in the country’s two major cities, Ho Chi Minh City and Hanoi, have peaked due to the epidemic, and investors have begun to pay attention to opportunities in other cities with cheaper property prices, such as Da Nang.

In the first half of 2021, Vietnam’s total import and export volume reached US$316.73 billion, a year-on-year increase of 32.2%, of which exports were US$157.63 billion, a year-on-year increase of 28.4%, and imports were US$159.1 billion, a year-on-year increase of 36.1%. The World Bank predicts that Vietnam’s GDP growth rate will be 6.6% in 2021, the highest level among ASEAN countries. Vietnam strives to achieve the goal of GDP growth of 6% for the whole year of 2021 and more than 7% in the next few months of 2021. .

The latest assessment results from the General Bureau of Statistics of Vietnam show that Vietnam’s economic size will reach approximately US$343 billion in 2020, with per capita GDP of US$3,521. The International Monetary Fund (IMF) believes that in terms of purchasing power, Vietnam’s economic size will reach US$1.05 trillion in 2020, with per capita GDP reaching more than US$10,000.

Ren Yihang, executive director and partner of Golden Emperor, said that amid the epidemic, the Vietnamese stock market and property market performed well, and a lot of funds remained in circulation, causing property prices in District 1 of Ho Chi Minh City to increase by nearly 6.8% year-on-year. Vietnam’s real estate market has benefited from the Sino-US trade war earlier. In addition, many of the world’s top companies have moved their production lines from China to Vietnam to diversify risks. This has led to the country’s economy still recording decent growth despite the epidemic, and the middle-class population The steady rise has stimulated the demand for high-quality housing, and property prices in Hanoi and Ho Chi Minh City have bucked the trend and “topped”.

Yam Yihang said: “This year, like Hong Kong, Vietnam’s property market has not been affected by the epidemic. On the contrary, it has bucked the trend and is improving. In the two most popular cities, Hanoi and Ho Chi Minh City, property prices in the city centers have successively exceeded their peaks, and developers have also been very aggressive in asking prices. Taking Ho Chi Minh City as an example, the current price of new luxury homes in the Financial District of District 1 and the new core business district of District 2 has reached as high as HK$10,000 per square foot, but they are still being sold out quickly.”

In addition to the two major cities mentioned above, more and more people are paying attention to Da Nang, the fourth largest city in central Vietnam. The city has maintained a high economic growth rate in the past five years and is expected to continue to grow at an average rate of 5% by 2030. increase. Tourist visits to Da Nang are growing at an average of 20% per year, and demand for hotels, resorts and facilities continues to grow. In addition, Da Nang has approved a smart city development plan from 2018 to 2025, and it is expected that the city will reach the status of a smart city by 2030. It is optimistic that Da Nang will have a high demand for hotels, apartments and other housing, according to Deputy Director of the Da Nang City Construction Bureau The director said that the city’s real estate industry is developing rapidly, with more than 50 real estate projects under construction in Da Nang, with more than 50,000 apartments, penthouses and villas, as well as various projects such as aparthotels, housing, office buildings and shops. .

Savills Vietnam issued a report stating that the current foreign demand for Vietnamese real estate is mainly concentrated in large cities, such as Hanoi and Ho Chi Minh City. Recently, the sales of many local off-the-plan properties have been good. In some cases, the quota for foreigners has been sold out in the early stages of launch. Not only that, recently foreign buyers have also turned to provinces and cities such as Da Nang, Nha Trang, or Quang Ninh.

Jones Lang LaSalle (JLL) issued a report stating that due to the rise of the middle class, housing demand in Vietnam has shown steady growth, and the housing market in Vietnam is expected to maintain steady growth. Many of these powerful investors prefer existing buildings. In the next few years, the demand for mid-priced apartments in the Vietnamese market will still be high because of limited supply.

Da Nang is located in the most central coastal area of ​​Vietnam. It only takes about 1 hour and 10 minutes to fly to the two major cities of Hanoi or Ho Chi Minh City, and it takes about 2 hours to fly to Hong Kong. Da Nang’s three major industries include tourism, Manufacturing and shipping industries. Danny Nguyen, chairman of the developer Filmore Group, said: “The three major industries in Da Nang not only promote the economy, but also drive the increase in per capita income, causing the middle-class population to continue to rise in recent years. In addition, many foreign investors have set up factories there, such as LG and Fujikin. R&D bases or production lines have also been established in Da Nang, and the number of foreign employees has increased significantly, stimulating demand for high-quality housing in the center of Da Nang.”

Golden Emperor CEO Lai Yuanfang said: “Da Nang will have many large-scale infrastructure projects in the future. The most eye-catching one is the planned Da Nang to Hoi An railway, which costs US$2 billion. It is currently in the project bidding stage and will be completed after it is opened to traffic. It will consolidate Da Nang’s important position as a transportation hub in central China and attract more tourists and foreign investment.”

Filmore is now launching a new property in Da Nang, The Filmore Da Nang, which is jointly represented by Golden Emperor, Asia Bankers Club and Ashton Hawks. Pricing starts from HK$2.2 million and unit area starts from 484 square feet.

Global property market. Ming Pao reporter Long Caixia

[Long Caixia Overseas Real Estate Tips]