The event of visiting shown-house in Pheonic Island in Aqua City project of Novaland

Growth of the economy, strong demand and positive investor sentiment and diversified products from developers are expected to push provide a fillip to the housing market.

The sudden outbreak of Covid-19 last year saw the bottom fall out of many sectors in the economy, but the property market shrugged it off and continued to grow strongly.

There were few factors to change investors' expectations from the market since most market research showed property prices rising across the board.

Not only the investors’ confidence but also the positive outlook of the macro-economy as well as the product development strategies of leading brands in the market are cited as the reasons for the market growth.

The International Monetary Fund said Vietnam’s GDP grew at 2.4 per cent in 2020, one among the highest rates in the world, thanks to its successful containment of the Covid-19 pandemic.

The success in controlling the pandemic is expected to continue this year, boosting the economy further.

In 2021, when most of the country’s population is expected to get vaccinated, Fitch Ratings forecasts economic growth of 7.5 per cent.

In recent years there has been a dramatic shift with buyers moving from HCM City to neighbouring areas.

In the past the most lucrative market in the south was downtown Sai Gon, but now there are rising new markets in provinces such as Dong Nai, Binh Duong and Long An and others with tourism potential such as Binh Thuan, Khanh Hoa and Ba Ria - Vung Tau.

Chances for developers

Last year Covid-19 forced many property companies to change their product development strategies, and the winners were those with good capacity, diversified product portfolios or customers with demand for housing.

Bui Nguyen Huyen Trang, senior director, Vietnam market, at property consultancy JLL, said developers today play a very important role in city planning. In order to create sustainable value for their large-scale projects, they have carefully studied the principles of urban planning.

This year the HCM City market is expected to keep developing eastward, with Thu Duc city’s creation causing a new round of price hikes there.

The infrastructure that has been developed to connect the city with neighbouring provinces will cause the property markets in satellite and tourism areas like Binh Duong, Dong Nai, Ba Ria - Vung Tau, and Binh Thuan to boom.

Besides, developers are focusing on creating living spaces that not only diversify the choices they offer customers but also improve the quality of life and create new trends and life experiences.

Developers who capitalised on the wave of infrastructure development and buying achieved great success despite the severe impacts of Covid-19.

Clubhouse and PGA Ocean golf course in NovaWorld Phan Thiet will be operational from April 2021

Novaland was one of them.

The company recently announced its financial results showing that in 2020 it made a record VND3.9 trillion in profit after tax, 7 per cent higher than the target and 15.3 per cent up from 2019.

Total consolidated revenues including from sales of units and projects and services was VND8.6 trillion.

As of December 31 last year Novaland's total assets were worth VND144.5 trillion, a 60.6 per cent increase in 12 months.

In 2020 its disbursements were for M&A activities and investment in project development. Continuing to receive investment from domestic and international reputable financial institutions in the situation of Covid-19 has shown the trust of partners on the first’s capacity.

Despite the pandemic, Novaland continued to bring new products into the market last year.

Notably, even in the hospitality segment that was experiencing difficulties, it managed to attract huge interest in its projects like NovaWorld Phan Thiet and NovaWorld Ho Tram.

Experts said prices would continue to increase this year due to strong demand, economic growth and good business strategy in real-estate sector.

A report titled ‘Ready for a new cycle from 2021’ released recently by VNDirect Securities Company said the upward trend in prices would continue thanks to the increase in housing demand.

It attributed the price hike to developed infrastructure and lower bank lending rates.