Backed by strong efforts by government and authorities, the Vietnam housing sector has witnessed a sharp growth in investment patterns. The property sector has been ranked third in attracting foreign direct investment. Foreign investors disbursed more than US$ 8 Billion in real-estate projects in Vietnam during the first 10 Months of 2010. In the past few years, the real-estate sector has been one of the major contributors in the economic growth of the country. Thus, rising investments will further add to the growth of households in the country according to a new research report by RNCOS, “Vietnam Housing Forecast to 2013”.
Vietnam housing sector has been growing at a rapid pace over the past few years owing to increasing rate of urbanization, strong demand, rising number of households, and high investment. Despite the after-impacts of recession, the country has effectively witnessed a significant growth in its housing sector. The demand and supply of housing units has met the expectation of large population, especially in cities like Hanoi and Ho Chi Minh City as these two regions have recorded high GDP growth.
However, despite having good amount of supply and demand, the housing sector is still witnessing the significant presence of semi-permanent or temporary wooden houses without proper housing facilities. Additionally, the number of households is rising, which correspondingly raises the housing requirements in the country. As per our estimates, the potential demand for housing ranges between 1.6-1.7 Million Units (for the period 2010-2013) that is further likely to augment in future.
Besides, the report offers an in-depth analysis of the Vietnam housing sector and focuses on all the key aspects to interpret market structure and demand potential. The report investigates the key factors responsible for the market growth and further illustrates their impact on future demand. It also provides an effective insight into the macroeconomic condition of the country and discusses about the key topics, such as urbanization and population growth.
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