Real Estate Remains An Attractive Investment Channel

The data and assessment reports of state management agencies, as well as independent research organizations, show that real estate has been going to be an attractive investment channel in 2017.

Additionally, in order to create favorable conditions attracting the investment in this area, the Government needs to continue to stabilize the macroeconomy and further improve the infrastructure.

Attracting investment in real estate increased sharply

According to the prestigious corporate rating in 2017 has been announced by Vietnam Report Corporation (Vietnam Report), revenue and net profit after tax of real estate investors in 2015 reached 29,250 million USD and 3,5 million USD, much higher than the average of construction material companies, construction and real estate consultants and brokers. It is proved that the investors have been doing businesses quite effectively during the past.

Attracting investment in real estate increased sharply

By the end of February 2017, the total value of real estate inventories remained at 1,330 million USD, fell 65,250,000 USD compared with December 2016, equivalent to a decrease of 4.67%. In addition, according to the Foreign Investment Agency under the Ministry of Planning and Investment, FDI inflows into real estate in the first two months of 2017 reached $ 52.4 billion USD, accounting for 17, 6% of total investment. These figures show that real estate still maintains an attractive investment channel not only for domestic investors but also for foreign investors.

New figures released by the General Statistics Office show that real estate business is the sector where new businesses are established and registered capital in the first two months increased the highest compared to the same period of the previous year (an increase of 43, 4% in enterprises and 63.8% of registered capital)

It is necessary to continue improving the infrastructure and stabilize the macroeconomy

According to a survey by Vietnam Report, “competitors in the industry” is the factor that strongly influences the growth target of real estate companies in 2017 (54.5% of businesses surveyed). The next are factors such as labor costs, property prices increase, access to capital, etc.

According to the survey, enterprises recommended that the Government prioritize “macroeconomic stability” (68.7%) and “infrastructure improvement” (61.5%). If the infrastructure and transportation are improved, these will be “golden” projects in the context of increasing housing demand. In addition to the basic policy surveyed, some businesses said that providing continuous, regular and accurate market information will assist businesses with an overview of market trends for construction.

It is necessary to continue improving the infrastructure and stabilize the macroeconomy

The real estate market is expected to rise in 2017. However, Vietnam Report also noted that real estate investment risk is very high, the risk of “real estate bubble” although it is very difficult always exists along with growth and speculation. Therefore, businesses need to be cautious in the direction of operation and have the appropriate policies which are favorable to the trend of the market, thereby building brand reputation, become the reliable choice of Every time customers think of buying / building their dream home.

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