Vietnam homes sales, rents and supply all fell in first half, but its property sector remains attractive thanks to successful coronavirus response
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Home sales in Vietnam’s major cities fell by between 40 per cent and 60 per cent in the first half of this year, while rents retreated by 40 per cent, according to Cushman & Wakefield Vietnam.
“Launches of new projects were naturally lower than at the same point last year, down 30 per cent and 60 per cent in Hanoi and Ho Chi Minh City, respectively … as buyers became more cautious,” Alex Crane, Cushman & Wakefield Vietnam’s managing director, said. “This is despite developers offering attractive financial incentives, such as interest-free loans from banking partners and longer payment schedules,” he said, adding that home prices were likely to plateau in the short term.
The outlook for Vietnam’s property market, however, remains positive despite the drops in home sales, rents and the supply of new homes, because of its success in controlling the spread of the coronavirus pandemic.
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“With effective containment of the pandemic, arguably the best in Southeast Asia, Vietnam has gained even more attention among international investors,” Cushman’s Crane said. “Many investors were attracted before the pandemic, and we expect even more new entrants in 2021.”
