2020 is a challenging year for the real estate industry when more than 1700 businesses in the real estate, construction and building materials sectors complete bankruptcy procedures, supply to the market decreases and tightens. credit tightening and Covid-19 shifting kick have caused the market to fall into a state of cooling in 2020. As usual, as the number one information channel in the real estate industry. Vietnam Real Estate Conference to summarize the breath of the market in the past 1 year, the conference has the participation of many famous names in the market: Research units (CBRE, Savills), Investor (Danh Khoi Group, Dat Xanh Group), Leading Human Resource Officer (Navigos Search) and Foreign BDS Brokerage (Immica), some key points of the conference :
1 / Vietnam real estate for a decade, looking back to 2010-2020
– The urbanization rate increased rapidly in 10 years from 30% in 2009 to 35% in 2019, although still much lower than other regional countries such as Thailand (51%), Philippines (47%). ), Indonesia (56%). Binh Duong-Dong Nai-Bac Ninh is the locality with the fastest increasing urbanization rate in 10 years, while HCM has a slight decrease of 5%, reflecting the trend of population expansion into neighboring districts and provinces;
– The population expansion towards the southeast-east of Ho Chi Minh City is reflected in the strong growth in population and number of projects, Q2 (149), Q9 (164), Q7 (201) and Thu Duc ( 141)
– Young people increasingly prefer condominiums as the number of urban households increases by 1.6 times compared to 2019, of which some provinces and cities increase rapidly such as Binh Duong, Ba Ria Vung Tau.
– Compared to other investment channels such as Gold-Securities, Real Estate is still the most popular channel when profit after 10 years can increase 5-10 times while other channels fluctuate 1-2 times. .
– Vietnam’s real estate market in the past decade (2010-2020) has witnessed the THINH-SUY phases of a growth cycle [Freezing (2010-2012) – Recovery (2013-2015) – Hot Growth (2016-2018) and Recession (2018-2020)]. This was also the period when the Vietnamese real estate market was closer to the world real estate market when new products appeared, such as Condotel, Officetel-, Farmstay … and many laws / decrees came into being. helps shape and promote real estate development in Vietnam to a new level.
2 / Real Estate Market 2020:
– Almost all types of real estate are affected by the Covid-19 epidemic, the number and demand for search has decreased, and the heavily affected segments are private houses, townhouses and retail.
– Industrial real estate has become a bright spot this year and forecast for the whole year 2021 due to the impact of trade agreements.
– The age of searching online for real estate information increases (35-55 years old), especially people searching for real estate in provinces outside Hanoi and Ho Chi Minh increase (Binh Duong, Dong Nai).
– The highest rate of Vietnamese people buying BDS for investment in the region with more than 32% searching for real estate investment;
– There is a phase difference in supply-demand according to data from when more than 66% of people search for an apartment in the affordable segment (1m2 <30 million, price 2 <2 billion) while from the beginning years until T11-2020 mostly in the luxury segment - luxury.
– Demand for housing has changed – trend of looking for green, environmentally friendly buildings. The legal factor is still one of the important factors as utilities and complexes are appreciated
– Vietnam’s PMI, Industrial Land Lease and Construction Costs have improved and stand above Malaysia, Indonesia and Thailand, expected to have an additional 2,700 hectares of industrial BDS from Q4 / 2021 to Q4 / 2022.
Digital transformation is going strong, big CDTs are launching online platforms (web, app, wap), using technology in sales and marketing;
– Identify the main product lines: Urban areas focus on surrounding facilities, luxury apartments with classy services, and satellite urban areas.
– Covid translation does not affect real estate prices much, as the price indexes in the two markets of Hanoi-HCM continue to grow in the three years of 2018-2020.
3 / Real estate HR market (Navigos data)
– Recruitment demand in BDS HR industry increased rapidly, especially from 2014-2019, recruitment demand in this industry averaged from 14% to 49% annually.
– The age with the most demand for recruitment is about 20-40, has financial experience, ability to communicate, ability to negotiate and at least 1-3 years of experience.
– In addition to the issue of salary and bonus, the three most important factors to keep good personnel: Promotion ability, well-trained training and work-life balance.
– The salary spectrum for the BDS industry is very attractive, the lowest is 500 and the highest is up to 18,000 $ according to the survey of Navigos (experience required> 5 years)
– Difficulty for personnel in the industry: Seniority (seniority), Skill Gap, Commitment and Technology gap (requires personnel in this industry to have more knowledge of technology)
4 / Forecast tReal Estate 2021
– The apartment building is still the type of real estate that maintains the growth in the amount of information posted and the search level, forecasted 2021 apartment prices will continue to increase and is the leading segment leading the market (more than 38% the number of guests who are directors / department heads / CDT agrees with this statement).
– Industrial real estate will continue to be a bright spot in 2021 – especially types of logictics, warehousing….
– Townhouses, private houses, land plots are expected to recover slightly in the mid-end of 2021 when the vaccine is used and the translation is completely controlled, but the land plot will increase locally in a few localities to benefit from the Infrastructure: Bao Loc, Binh Duong, Hai Phong, Bac Ninh ..