Real estate channel continues to be an attractive investment segment in 2022

February 20, 2022 | NEWS

The Global City – Real estate investment figures in the fourth quarter of 2021 and right in the first month of 2022 have signaled that this field is growing strongly.

Real estate continues to be an attractive investment channel in 2022-compressed

Talking numbers

Real estate has risen to the second position among 15 industries receiving foreign direct investment (FDI) in January 2022. From 3rd place, real estate increased by 1 place thanks to attracting FDI inflows of more than USD 472 million in January, 2.6 times higher than the same period last year and accounting for nearly 22.5% of total foreign investment capital. out of registration. This result helps real estate to be second only to the processing and manufacturing industry in attracting FDI.

In fact, the result of attracting more than 472 million USD of real estate was fueled by foreign investors' capital contribution to buy shares with a cash flow of more than 347 million USD, accounting for 73% of the total registered FDI in real estate. produce. In which, the capital contribution and share purchase of over 334 million USD by Singaporean investors in MV2 Vietnam Real Estate Trading Joint Stock Company is the main driving force and this is also a factor to help foreign investment capital. to Hanoi increased sharply in January, according to the Foreign Investment Department (Ministry of Planning and Investment).

Previously, the fourth quarter of 2021 recorded a warm real estate market with an increase in the number of newly licensed projects. According to the assessment of the Ministry of Construction, in the fourth quarter of 2021, when localities gradually lift restrictive measures against the epidemic, at the same time reactivate production activities and economic development in the context of a new normal. , investment activities, business and real estate market had more prosperity and development compared to the previous quarter.

In the context of difficult epidemics, residential real estate still tends to increase, especially in big provinces and cities.

Notably, the apartment segment has 49 new licensed projects, with an expected supply of 15,169 apartments, an increase of about 125.6% compared to the third quarter of 2021. In which, the North has 24 projects with 3,657 licensed apartments, the Central has 6 projects with 1,814 apartments and the South has 19 projects and 9,698 apartments. The social housing segment also has 3 new licensed projects in Binh Duong, Hanoi, and Lang Son, with a total supply of 3,361 apartments.

The good news is that after a long period of silence, the tourism real estate segment also received good news with 6 new resort projects, promising to supply the market with 3,545 tourist apartments and 168 tourist villas. The projects are concentrated in Hoa Binh (3 projects), Binh Dinh, Ninh Thuan and Ha Tinh.

Real estate is still an attractive investment channel

According to Mr. Su Ngoc Khuong, Senior Director of Savills Vietnam, in the context of difficult epidemics, residential real estate still tends to increase, especially in big provinces and cities. Over the past year, real estate prices increased by 30-40% in most segments.

Investors are tending to expand investment assets as land funds in satellite cities around Hanoi, Da Nang, Ho Chi Minh City and Nha Trang. Large land bank is a factor that they are very interested in to expand the urban area later, especially along the roads of cities with long coastlines.

“Vietnam has a population of nearly 100 million, the average GDP growth rate for many years has been approximately 6-7%. This is an opportunity that domestic and foreign investors cannot ignore to meet the housing needs of the people," said Mr. Khuong.

Khuong also noted that for the Vietnamese real estate market, after the financial, economic and epidemic crises, it seems that the investment pressure will be released. In the year 2022 - 2023, securities and residential real estate will continue to grow strongly.

In order for the market to develop healthily,

Mr. David Jackson, General Director of Colliers Vietnam recommended: “The authorities need to continue to maintain the reform of the domestic investment environment appropriately to become more attractive in the eyes of international investors. . Accurately identifying major market problems and finding solutions will help to unclog the bottlenecks. Efforts to reform administrative procedures in the direction of shortening the processing time of documents and costs in investment and construction of real estate projects will also bring good effects to investment attraction.

In addition, the infrastructure system also needs to be invested synchronously, creating conditions for the real estate market to develop more vibrantly. On the other hand, real estate businesses themselves must innovate their operating methods, apply new technologies, etc. These efforts will help the market continue to develop steadily, creating momentum to attract more FDI in 2022. .

Regarding the above issue, the Ministry of Construction has asked localities to implement the Government's policy and direction on strengthening decentralization and decentralization of powers for localities. In particular, focusing on removing legal obstacles, procedures for preparing investment in real estate projects, housing projects to increase supply, create conditions for the development of low-cost commercial housing projects for customers. middle-income model, adjusting the structure of the housing and real estate market to suit the needs of the market.

Expeditiously develop and approve local housing development programs and plans for the period 2022 - 2025 and period 2022 - 2030 to have a basis for approving investment policies and selecting investors to implement projects housing development in the area.

In addition, implementing policies and legal documents on investment, construction, housing and real estate business newly issued. Publicly announce and organize joint implementation, shortening the process of reviewing and settling administrative procedures in the new level, adjusting, checking and reviewing real estate business projects.