Data from Global Property Guide shows that Vietnam's real estate prices are growing rapidly compared to the world. Specifically, Vietnam's 5-year real estate price growth reached 59%, much higher than other countries such as the US (54%), Australia (49%), Japan (41%), Singapore (37%)...

This is the information shared by Mr. Nguyen Quoc Anh - Deputy General Director of Batdongsan.com.vn at the Vietnam Real Estate Summit - VRES 2024 with the theme "Viewpoint". Experts focused on analyzing the 30-year journey of the Vietnamese real estate market and the overall real estate market - looking to the world.

Analyzing the market, Mr. Quoc Anh said that economy, management and society are the 3 main factors affecting real estate prices. Vietnam is a country with a strong economic growth rate per capita and inflation. At the same time, the interest rate environment and investment efficiency of domestic channels have both strengthened consumers' demand for real estate.

Specifically, Vietnam's GDP per capita is currently at 34.8%, higher than the world average (20.8%) and developing countries (22%). On the other hand, inflation in Vietnam is also higher than the average of other countries. Currently, the interest rate environment in Vietnam is gradually returning to a more favorable level and the proportion of accumulated assets in Vietnam's GDP is quite high (32.8%), ranking 27th in the world (average 27.1%).

With the amount of money saved, Vietnamese people have a number of main investment channels such as financial markets, real estate, gold, foreign currency and savings. While the gold investment channel is volatile, risky and has a large difference between domestic and world gold prices, the foreign currency and savings channels have quite low yields, in the range of 9 - 13%/2 years - Mr. Quoc Anh cited.

Notably, real estate is considered the investment channel with the best yield in Vietnam in the past 10 years with the profit margin of the apartment type reaching 197% and land reaching 137% in the fourth quarter of 2024 compared to the first quarter of 2015.

Considering the second factor of management with tax as both a source of revenue and a market management tool, data from the Organization for Economic Cooperation and Development (OECD) shows that the proportion of real estate tax in GDP by country in Vietnam is at (0.03%) much lower than other countries such as China, Singapore (1.5%), Japan (2.6%), Korea (4%).

According to Mr. Quoc Anh, referring to some prominent countries in the world, it can be seen that real estate tax is used as a policy to manage the market and optimize revenue. However, before applying, many theoretical and operational challenges need to be considered appropriately. The perspective for Vietnam lies in the existence of many challenges from theory to the appropriate application of real estate tax.

Social factors show that Vietnam's population and urbanization rate create many opportunities for growth in real estate demand. The trend of smaller families also promotes the demand for real estate for the next generation to inherit and the journey of home ownership for young people.

In addition, culturally, Vietnamese people have a great desire to own real estate in their lifetime. Vietnam is among the countries with the highest real estate ownership rate in the world at 90%, higher than some countries in Southeast Asia such as Singapore (88%), Indonesia (84%) and higher than the US (66%), Australia (66%)...

Looking back at the real estate market over the past 30 years, Mr. Bach Duong - General Director of Batdongsan.com.vn said that the Vietnamese real estate market over the past 30 years can be divided into 5 main stages: beginning (before 2009), shaping (2009 - 2012), growth (2013 - 2019), fluctuations (2020 - 2021) and challenges (2022 - 2024).

Mr. Bach Duong analyzed that the Vietnamese real estate market started (before 2009) with a legal corridor from the law and a favorable macro environment. After joining the WTO in 2007, Vietnam's FDI in the real estate sector grew strongly, from 8.5 billion USD in 2007 to 23.6 billion USD in 2008 and 21.5 billion USD in 2009. Many large real estate enterprises were launched and new projects attracted attention.

In the forming phase (2009 - 2012), the decrease in credit and increase in interest rates caused the real estate market to lose liquidity and prices to fall continuously. The amount of real estate inventory increased from 108.4 trillion VND in 2009 to 192.7 trillion VND in 2011. At this time, enterprises went through a rigorous screening process. When consumers lost confidence, many online real estate information channels were born to improve transparency.

During the growth period (2013 - 2019), three new laws, including the Land Law, Housing Law and Real Estate Business Law, continued to guide the market, recording positive improvements. However, the market soon went through a period of volatility (2020 - 2021) when the COVID-19 pandemic affected all sectors. However, real estate trading activities at this time continued with increased supply and premiumization.

From 2022 to present, the market has gone through a challenging period with a difficult macro situation, many businesses have revealed financial and legal weaknesses. Consumers' requirements for investors, real estate trading floors/brokers are therefore also higher.

Currently, real estate consumers still face many difficulties in the process of researching and choosing. Therefore, investors and brokers also face challenges in finding customers and building reputation - Mr. Bach Duong recommended.

2024 marks the 10-year milestone of organizing VRES. On this occasion, Batdongsan.com.vn organized and awarded the Vietnam Real Estate Brokerage Awards - VREAA for the first time with 7 categories awarded to 130 excellent brokers nationwide. The award aims to affirm the prestige and dedication to the profession of brokers in Vietnam, while contributing to promoting the market to develop more healthily, transparently and sustainably.