4 reasons why real estate is still a promising investment opportunity in the second half of 2022

DNHN - Increasing governmental investment, economic growth stimulus packages, and inflation risk,... are some of the reasons why Hanoi real estate remains a promising investment opportunity by the end of 2022.

In the timeframe 2021-2025, Hanoi can develop 2-5 new industrial parks.

To satisfy the requirements of investment and industrial product development, contributing to the city's industrialization and modernization in the future, Hanoi has selected and worked to accomplish the aim of 5 industrial parks between 2021 and 2025.

Specifically, Hanoi will undertake several projects, including Soc Son Clean Industrial Park (302.8ha in Soc Son district), Dong Anh Industrial Park (300ha in Dong Anh district), and Industrial Park in Ho Chi Minh City, and Dong Anh Industrial Park. Bac Thuong Tin Industrial Park (an area of 112ha in Thuong Tin District), Phu Nghia Expanded Industrial Park (an area of 389ha in Chuong My District), and Phung Hiep Industrial Park (an area of 174.88ha in Thuong Tin District).

Hanoi now boasts more than ten industrial zones, with a 100% occupancy rate. By December 2021, Hanoi has received 18,000 billion VND in total investment capital from 399 projects and 303 FDI projects totalling 6.1 billion USD. As can be seen, Hanoi offers a strong allure to investors interested in establishing industrial parks. 

In addition, the establishment of industrial parks will lay the groundwork for increased company investment. Simultaneously, the implementation of the industrial park development strategy will aid in the promotion of economic restructuring, which is a driving force in the growth of Hanoi's real estate market.

Property control is necessary

Many major economies throughout the world are experiencing inflationary pressures, and Vietnam is not among them.

This year's buying power of 1 billion dongs may fluctuate from next year's. This year's house costs 2 billion; a few months later, it may cost 2 billion 200 million. As a result, many people are scrambling to find suitable real estate solutions for financial protection.

According to the DKRA's market report for the first six months of the year, purchasing power in some segments, such as land plots, has decreased, but selling prices have not decreased, except for some special cases of speculation, which cannot continue, and profit has been forced to be cut.

In such a circumstance, items with actual worth, clear legality, and a selling price appropriate for the majority of people's money will still have good liquidity.

Recovering From COVID

Vietnam's economic growth rate improved significantly in the first quarter of 2022, with GDP reaching $92.175 billion, up 5.03 per cent from the same time last year and exceeding China's economic growth rate. Singapore (4.8%), and (3.4 per cent).

Following COVID, business activity resumed, and Vietnam's economy and commerce increased dramatically.

These are positive indicators for the real estate market:

Commercial premises are required for commerce and trade; operating a firm that requires office space; People with a decent salary will require homes. Workers from other nations and regions who return to the city to work after the outbreak create a need for housing.

Use the brief cooling-off phase to your advantage

The real estate market is cooling after a period of rapid development. However, this is just a phase of accumulating momentum before a new growth cycle begins.

Furthermore, supply has not yet recovered owing to legal concerns and high building material prices. Meanwhile, as the proportion of immigrants and the number of young families grows, so does the need for homes.

According to prior precedents, the midst of the local cooling down phase is a perfect time for investors who have cash on hand to "search" for good-priced properties that need to be finalized.

Ciputra Hanoi is the first large-scale international urban development in Hanoi, near West Lake and two big bridges Thang Long and Nhat Tan, linking the international airport, the old town centre, and neighbouring provinces swiftly and easily.

Nhu Thai