The Vietnam real estate market in 2022 will be led by property in the country’s suburban and resort areas. Preferences are shifting among homebuyers who are now looking for second homes or even primary residences that offer more space and a connection to nature.
“We have attractive destinations such as Bao Loc, Dalat, and Ho Tram. From Ho Chi Minh City, it is easy to drive to these locations and homebuyers can find second homes here to get away from the city and enjoy the open space,” David Jackson, CEO of Colliers International Vietnam, told the Vietnam Investment Review. “This trend is expected to continue to grow post-pandemic.”
Price and limited supply are among the other reasons why suburban and resort areas will lead the Vietnam real estate market in 2022. Research from Savills Vietnam showed supply in the Ho Chi Minh City house and villa market hit its lowest mark in five years while prices in most districts saw increases of 13 percent or greater during the first half of 2021.
“Historically low supply has driven inevitable price increases, that has spilled to neighboring provinces. With the new government formalized then the near-term hope is for more approvals that will answer the supply shortage,” Vincent Nguyen, Director of Residential Sales, Savills HCMC, said. “Future supply is so far evenly dispersed, providing an array of location choice.”
This was supported by a market report published by DKRA Vietnam late last year. The consultancy found that six townhouse and villa projects opened for sale in Ho Chi Minh City and surrounding areas in November. The bulk of these being launched in the suburban Dong Nai province, a key area for the Vietnam real estate market in 2022.
“In 2022, the residential real estate segment and urban areas will thrive. Some key urban areas developed in the past few years are located in Dong Nai, Long An, and Binh Duong provinces. This will continue to be the primary trend as area for residential real estate in Ho Chi Minh City will continue to be limited, driving investors and developers to satellite urban areas with easy connectivity to big cities,” Savills Vietnam Managing Director Neil McGregor told the website.