Revitalizing Vietnam's Real Estate Market: Vinhomes Leads the Way
Vietnam's real estate market is bouncing back, with Vinhomes at the forefront of innovation and growth, attracting global investors with its well-planned developments.
VinhomesReal Estate MarketVietnamForeign InvestmentSustainabilityReal Estate NewsSep 11, 2024
The Vietnamese have a saying “Where there is good land, the birds will come and settle.” This idiom reflects the country’s rising appeal to global investors in recent years. In the first five months of 2024, foreign direct investment (FDI) in Vietnam’s real estate sector reached nearly USD 1.98 billion – a 70.8% increase compared to the same period last year, making it the second most attractive sector after manufacturing, accounting for nearly 17.9% of total registered investment.
Each segment of Vietnam’s real estate market in 2024 offers unique investment highlights that attract foreign investors. The market’s allure comes from several key advantages, such as a young and growing population, a high urbanization rate, and strong economic growth. Moreover, the positive impact of the new Land Law, which came into effect in August, is expected to create fresh momentum for the real estate market in the coming years.
Under these new laws, foreigners are now allowed to own homes for up to 50 years from the date of issuance of the ownership certificate, with the possibility of extending this term by an additional 50 years. This regulation effectively removes the psychological barrier for foreigners when it comes to owning property in Vietnam, as they can now legally own a home for almost their entire lifetime. Eligible foreigners also can acquire houses directly from other foreigners possessing properties in Vietnam.
Responding to this demand, Vinhomes has rapidly developed a series of high-end residential and commercial projects that have reshaped the urban landscape and introduced international living standards to the country. Vinhomes Ocean Park 2 and 3 are among the first projects to receive approval under the new regulations allowing foreign ownership of residential properties in Vietnam. Market reports indicate that liquidity in these projects has significantly increased recently.
In 2023, Vinhomes recorded nearly VND 104 trillion (approx. USD 4.5 billion) in consolidated net revenue, a 66% increase compared to the previous year. The company also exceeded its annual profit target by 12%, with after-tax profits rising by 15% year-over-year to VND 33.5 trillion (approx. USD 1.44 billion). This remarkable achievement was made possible by Vinhomes’ relentless efforts to launch new products into the market despite a tight supply.
Vinhomes has been actively investing in the development of living areas with a focus on achieving Net Zero carbon emissions. This includes emphasizing natural ecosystems, optimizing the use of renewable energy, and prioritizing recycled construction materials to minimize both direct and indirect environmental impacts.
The company is also committed to developing green transportation infrastructure by coordinating the organization of electric bus routes and planning charging stations within its urban areas. This initiative encourages residents and the broader community to adopt safer and more environmentally friendly modes of transportation.
With its strategically located projects, commitment to international living standards, and focus on sustainability, Vinhomes stands out as a beacon of excellence in the real estate sector, promising long-term value and success for investors.
Frequently Asked Questions
What is the current state of Vietnam's real estate market?
Vietnam's real estate market is showing signs of robust recovery, making it increasingly attractive to both local and international investors.
What are the key advantages of Vietnam's real estate market?
The market’s allure comes from several key advantages, such as a young and growing population, a high urbanization rate, and strong economic growth.
What is Vinhomes' approach to sustainability?
Vinhomes has been actively investing in the development of living areas with a focus on achieving Net Zero carbon emissions, emphasizing natural ecosystems, optimizing the use of renewable energy, and prioritizing recycled construction materials.
What is the significance of the new Land Law in Vietnam?
The new Land Law allows foreigners to own homes for up to 50 years from the date of issuance of the ownership certificate, with the possibility of extending this term by an additional 50 years, effectively removing the psychological barrier for foreigners when it comes to owning property in Vietnam.
What is Vinhomes' commitment to green transportation infrastructure?
Vinhomes is committed to developing green transportation infrastructure by coordinating the organization of electric bus routes and planning charging stations within its urban areas, encouraging residents and the broader community to adopt safer and more environmentally friendly modes of transportation.
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