Experts predict the growth of economies and life quality in Vietnam in late 2020

Experts predict the growth of economies and life quality in Vietnam in late 2020

According to information provided by JLL Vietnam, in 2019 the value of real estate in Ho Chi Minh City increased compared to the average prices of the previous year:

by 27.5% in the second quarter of 2019

by 25% in the third quarter of 2019

On average, the price of an apartment reaches $ 2 582 per sq.m.

Meanwhile, in the capital of Vietnam – Hanoi, the rate per square meter also rapidly increased. The cost of housing increased by 4.9%. According to Global Property Guide magazine, the average price reaches $ 1,493.

In general, housing in Vietnam is becoming more expensive, and this trend will continue.

According to Savills Vietnam, due to the large-scale spread of the Covid-19 virus and the precautionary measures taken in the country, in the second quarter of this year, purchase and sale of residencies decreased.

In Ho Chi Minh City, the real estate market suffered especially – residence sales fell by 74%, the situation in Hanoi is slightly better – demand fell by 43%.

However, the supply in the housing market also decreased: by only 6% in Hanoi and 64% in Ho Chi Minh City. The coronavirus has caused a significant market crash in the country.

But recently the situation has been stabilized. After the quarantine measures were weakened, and consequently completely removed, the residents of Vietnam began to think again about purchasing housing, and the owners – about the profitable sale of property.

The profit on renting apartments in the country as a whole is about 5% per annum.

You can buy living space up to 120 square meters in the central districts of Hanoi for $ 1,500, and rent it out to tenants for $ 1,315 per month.

Accordingly, a similar apartment in Ho Chi Minh City will cost $ 2,100 per square meter, and the monthly rent will be $ 1,214.

According to Vietnam’s main state statistics service, the country’s economic growth has slowed sharply. In the second quarter of 2020, GDP increased by only 0.36% over last year. In 2019, the growth was 6.73%. The economic activity of the state was undermined by the coronavirus pandemic, which broke out at the end of 2019.

Recently, the International Monetary Fund predicted that in 2020 the growth of the Vietnamese economy will fall to 2.7%. Note that in 2019 a steady rise was 7%.

Meanwhile, Prime Minister Nguyen Xuan Phuc is optimistic and plans to make a jump this year and lift the economy by more than 5%.

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