Vietnamese Real Estate Market Initiates a New Phase

(SGI) - Renowned as a preeminent authority in real estate, Mr. MARC TOWNSEND boasts over three decades of experience in real estate investment and development. His leadership roles span reputable firms such as Richard Ellis, Regus, and CBRE across Singapore, Vietnam, Manila, and Hong Kong.
Vietnamese Real Estate Market Initiates a New Phase

As a Senior Advisor at Arcadia Consulting Vietnam, Mr. Marc Townsend sat down with Saigon Investment to delve into the emergence of a fresh cycle within Vietnam's real estate market.

JOURNALIST: - Sir, could you provide your current insights on the prevailing real estate market?

Mr. MARC TOWNSEND: - Vietnam's real estate sector is beginning to witness the "green shoots" of revival. This marks the inception of promising prospects that augur well for the future. The market's bedrock rests upon sustainable, long-term demand, harmoniously complemented by the interplay of Vietnam's demographic dynamics, urbanization trends, and housing affordability. The disruptive pricing strategies emanating from robust developers are pivotal in driving this newfound affordability.

Simultaneously, the housing domain continues to exhibit resurgent signs, attributable in part to governmental measures aimed at reinstating confidence among all stakeholders. This support is exhibited through various channels, including the enforced auction of development rights and the facilitation of direct negotiations between landowners and developers to streamline site clearance.

- Is this a propitious time for investors to venture into the housing market? What strategies would yield optimal efficiency, in your perspective?

- As the real estate landscape regains its vigor and advances, it is paramount for buyers, sellers, and industry experts to stay attuned to developments. Furthermore, adaptability to evolving conditions and seizing opportunities as they arise, while nurturing a long-term vision, is crucial. The secondary housing market is a watchword among insiders as it displays indications of recovery.

The equilibrium of secondary housing prices is expected to persistently realign. Yet, a growing demand for more favorable payment terms and reduced interest rates is discernible. As buyers perceive the resurgence of prices and demand, a sense of urgency will take root, underpinned by sustained, enduring demand. Presently, the classic "buy low, sell high" strategy seems fitting for Vietnam. Discerning investors stand to capitalize as market momentum returns.

- Given the extended period of dormancy, how has market demand shifted in your estimation? What counsel can you offer real estate developers in this new milieu?

- Notable transformation characterizes the real estate landscape in major cities, with the focal shift being from upscale residences to affordable housing. Developers are now attuned to a consistent, enduring need for such properties. The intrinsic linkage between price and supply bolsters the outlook for first-time homebuyers in this bracket.

With an enhanced clarity regarding Vietnam's policies and an improved economic landscape, investor confidence is poised for rejuvenation. Diverse avenues are materializing for investors to explore alternative asset classes such as student housing, data centers, and elderly care facilities. The global investment sentiment is favorably tilting toward Vietnam and is projected to remain so. Core drivers fueling housing demand in Vietnam over the upcoming decades encompass demographic dynamics, urbanization trends, and affordability.

Resilient real estate developers will not only weather the storm but also witness robust demand during recent launches. However, this dynamism will extend to other sectors, and we anticipate glimpses of revitalization in some of these alternative sectors in the near future, such as data centers and elderly housing.

- Sir, could you share a forecast for Vietnam's real estate market in the forthcoming years?

- In my estimation, the next two decades will sustain the housing trajectory within Vietnam's real estate market. Developers have come to realize that this constitutes a perpetual need.

Concurrently, the government acknowledges policy gaps and the resultant repercussions, thus striving for better operational efficacy. Presently and in the times ahead, the government will channel its efforts into developing novel urban hubs that are seamlessly integrated with comprehensive amenities for living, learning, entertainment, and holistic work environments. The real estate market abides by cyclical patterns—after periods of downturn, an upturn follows. At present, the market is embarking on a fresh upward trajectory as liquidity gathers momentum.

- Thank you very much.

Các tin khác