Two golden factors will create momentum for the real estate market as soon as the pandemic ends

The wave of big companies shifting their production from China to Vietnam and the repatriation trend of Vietnamese expatriates due to the pandemic are considered as two important driving forces to create strong power for Vietnam's real estate market in the coming time.

  Millions of Vietnamese expatiates repatriated to due to the pandemic bringing the trend of remittances into real estate 

While other countries, including those with developed economies, are in highly tensive condition or even "broken" in the war against Covid-19, in recent days, tens of thousands of expatriates returned to Vietnam as a safe destination, which shows the absolute belief of expatriates in their motherland.

Many real estate experts expect that the repatriation trend of Vietnamese expatriates will drive a wave of remittances flowing into the real estate market when the epidemic is over. Statistics show that at least 25% of remittances flow into real estate every year among of the total remittances of USD 16.7 billion in 2019, USD 15.9 billion in 2018 and USD13.8 billion in 2017. The amount of remittances into real estate is expected to increase sharply in 2020.

According to experts' assessment, for expatriates, the Covid-19 pandemic can be considered as a test for the economy and living environment in Vietnam, which apparently impacts on investment decisions. With 5 million expatriates and remittances amount in the top 10 largest in the world, after the pandemic ends, it is expected that a new wave of investment from Vietnamese expatriates will pour into real estate.

On discussion regarding of real estate segment that benefited most from the capital flow of remittance, Mr. Nguyen Van Dinh - Chairman of Vietnam Real Estate Brokers Association said that the housing and land lot segment will be the stable, attractive and constant ones, which attract lots of remittances. According to Mr. Dinh, real estate has always been valuable hoarding assets, especially in crisis period, so land lot is always a potential investment channel, along with the segment of apartments under completion will gain much attention with the current pretty good rental rate at about 7%.

Wave of foreign direct investment pours into Vietnam

Along with remittances, capital flows from foreign companies are also considered as an important channel to boost the real estate market after the Covid-19 pandemic. This capital flow will come from the big-scale manufacturing enterprises gradually moving their production factories from China to Vietnam.

It is remembered that in the end of 2019, Samsung closed the last phone factory in China to move to Southeast Asia including Vietnam, which has opened a bright prospect for the real estate market as Vietnam is increasingly become more attractive to leading major manufacturing enterprises.

In early 2020, when the Covid-19 pandemic appeared, the Nikkei Asian Review reported that Google and Microsoft had been urgently moving the production of phones, personal computers and other devices from China to Southeast Asian countries ( including Vietnam) in the context of the worsening corona virus pandemic, once again proving Vietnam's attractiveness to foreign enterprises.

According to Le Hoang Chau - Chairman of Ho Chi Minh City Real Estate Association: "Day by day, Vietnam has been proving to be a safe destination with its well controlling the spread of Covid-19. If in the coming time, we successfully control the pandemic to become a safe epidemiological destination which will strongly attract a wave of foreign investors to Vietnam.

Mr. Chau also affirmed that the real estate industry will benefit and first one will be the industrial and housing real estate segment, then followed by the offices, retail and commercial center segments.

Sharing the same point of view with Mr. Chau, Savills and CBRE experts also said that if Vietnam continues to control well the current and overcome the pandemic, it will be a safe bright spot on epidemiology, economy and politic attracting foreign investors as well as foreigners come to live and work.

Apparently, the real estate market is having many important driving forces and only waiting for "opportunities" to bounce back strongly. Therefore, despite the impact of the pandemic, many real estate enterprises determine this is the time to explode.

Source: CafeF (Credit to Tri thuc tre)