Land for investment on high-rise building

Land for investment on high-rise building

On December 31, 2020, Vice Chairman of HCMC People's Committee Le Hoa Binh signed Decision No. 4834/QD-UBND approving the Project "Building a housing development program in HCMC for the period of 2021 - 2030". According to this scheme, the target of commercial housing development in the period of 2021 – 2030, is expected to develop 45.2 million m2 of the floor; in which, from 2021 to 2025, it is expected to develop 19.7 million m2 of floor space and from 2026 to 2030 is 25.5 million m2 of floor space.

One of the key perspectives in the housing development of HCMC is to transform the housing model from low-rise to modern high-rise housing, mainly for efficient land use, creating a land fund for traffic development, parks, parking spaces, etc., provided that technical and social infrastructure is ensured; increase the proportion of apartment houses in new housing construction investment projects.

HCMC will give priority to the development of investment projects to build new houses, high-rise apartments along major public transport axes (such as metro line No. 1 in Thu Duc City), or areas with the planned implementation of the corresponding technical infrastructure system in 6 developed urban districts including District 7, 12, Binh Tan and Thu Duc City.

 

Despite the epidemic, experts assess residential real estate as a profitable investment channel. House and land prices are moving sideways at the moment but are expected to increase rapidly when the epidemic is under control. The housing market will grow well when the demand for housing and real estate investment is still very high, less affected by Covid-19. The most interesting segment will be land plots, mid-end and high-end apartments.

Forecasting the market until the end of this year, Mr. Do Viet Chien, General Secretary of the Vietnam Real Estate Association, said that people's demand for housing, especially in big cities, is still very high. Mr. Chien emphasized that the mid-end and even high-end apartment segment will still prevail and be interested. "Vietnamese people still want to own a house", Mr. Chien said. Mr. Nguyen Van Dinh, Vice Chairman of Vietnam Real Estate Brokers Association, forecast that the market will start to recover around the fourth quarter after the epidemic can be controlled in the third quarter. Price forecast, Mr. Dinh said that house prices, land prices not only will not decrease but tend to increase. Especially, even in the context of the epidemic, there are still projects that increase prices when there is enough legal basis, despite not being able to sell right now. This reflects the psychology of many investors who are considering real estate as a safe "shelter" channel, even further for post-epidemic opportunities.

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Vietnam has young and abundant human resources, cheap labor costs, and increasingly improved human resources are the factors that attract many large companies and corporations to set up factories here. The number of young Vietnamese workers who know Chinese, Japanese and Korean is increasing, meeting the job demands of companies. Thus, compared to investment in countries such as Thailand and Indonesia, investing in Vietnam will help the business save a large number of costs for personnel.

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