The Ministry of Construction (MoC) believes the domestic real estate market has overcome the most difficult period due to positive developments in the market as well as the whole economy in the fourth quarter of 2020.

While the pandemic has affected nearly every business, Vietnam’s real estate sector has seen significant movements throughout the year. 

Many people with money and without investing knowledge have chosen property as a safe haven, helping estate prices still increase despite the pandemic, experts have said.

Between 14,000 and 16,000 foreigners have bought housing in Vietnam since July 2015, mostly from China, the Republic of Korea, Japan, Taiwan (China), and Singapore, the HCMC Real Estate Association (HoREA) estimates.

Ho Chi Minh City’s office market has started to feel the effects of the COVID-19 pandemic, with grade A buildings impacted more than grade B, experts have said.

The real estate market has not recovered well after COVID-19, but property firms are now in a position to buy land plots at reasonable prices.

The domestic real estate market is hoped to have growth in the fourth quarter of this year and before the Lunar New Year 2021 if, by this year-end, the domestic economy is restored to levels from before the COVID-19 pandemic.

The slowdown in 2019 and the arrival of the COVID-19 pandemic in the opening months of 2020 saw Vietnam’s property market hit “double trouble”, but experts have said the possibility of a quick recovery remains.

Experts and businesses in Ho Chi Minh City’s real estate sector have mapped out recovery scenarios after the COVID-19 pandemic passes, with the local property market having experienced a marked slowdown.

Cutting costs and restructuring products are what many real estate firms are doing to deal with difficulties caused by COVID-19.

It takes years for quite a few real estate projects in HCMC to complete the necessary procedures. 

Experts believe the State's issuance of ownership certificates for non-residential real estate projects will solve existing difficulties in Vietnam’s real estate market.

The challenges that property developers face in HCM City were discussed at a meeting between the People’s Committee, relevant departments and developers last week.

Property industry insiders said the State Bank of Vietnam’s decision to tighten credit would mean pain in the short term for developers but help the sector develop sustainably over the long term.

Local property experts have forecast that the domestic real estate market will recover this year.

Real estate remained the second biggest magnet for FDI in 2019, following processing – manufacturing, as it attracted $3.88 billion FDI, equivalent to 10.2 percent of the total registered.

Vietnam's real estate market will not be short of capital next year but will still face many challenges from policies and administrative procedures, experts said at the annual Vietnam Real Estate Forum.

Many localities have raised their land prices by up to 70%, while on the national scale the Government is expected to issue a new price framework, driving up prices by 30%.

The Ministry of Construction (MoC) has released its first quarterly report on the domestic real estate market.