In the last two months of the year, Ho Chi Minh (HCM) real estate market is expected to accelerate thanks to strong driving forces from the increasing land fund for urban development and the large demand from the middle class.
1. Rise of the urban development land fund
Curently, HCMC has a policy to change the use of about one-third of agricultural land to industrial land and land for developing services and smart urban areas. Once implemented, this policy will be the basis and motivation to help the real estate market develop in the medium and long term.
New real estate trend during the “golden population” period
With a population of more than 93 million people, of which about 60% is under the age of 35, Vietnam is during its “golden population” period. The country currently has 50 million internet users, accounting for 53% of the population (while the world average is 46.64%). Advantages of “golden population” and the high speed of urbanization help diversify real estate business activities in large-sized cities like HCMC. This also opens up the trend of taking advantage of information technology in the digital age as the basis for real estate development.
3. Potential demand from the middle class
The middle class in Vietnam is growing rapidly. It is expected that HCMC's per capita GDP will reach $5,000 by 2020. This factor is a strong push contributing to the increasing demand for housing as well as developing the real estate market in HCMC.
4. Impressive and powerful regional connectivity of HCMC
HCM real estate market has a very large scale that has gone over the administrative boundaries of the city. Districts of provinces bordering HCMC like Dong Nai, Long An and Binh Duong are the first place to see new trends of real estate business. This impressive regional connectivity has helped increase demand, expand and stimulate the size of the real estate market.