HANOI, VIETNAM - Media OutReach Newswire - 11 September 2024 - The real estate market in Vietnam, despite facing numerous challenges in recent years, is showing signs of robust recovery. This resurgence has made the market increasingly attractive to both local and international investors. Amidst this revival, Vinhomes has emerged as a key player, driving growth and setting new benchmarks in the industry with its innovative and well-planned developments.
A Promised Land for Global Investors
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. This surge in interest not only highlights the attractiveness of these developments but also signals a broader trend of increasing foreign participation in Vietnam’s real estate market, particularly in strategically located and well-planned urban areas like Vinhomes Ocean City.
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. Most of Vinhomes’ new projects are strategically located in areas with high potential, rapid urbanization, and easy access to key regions, catering to both residential and commercial investment needs.
“All-in-one” Civilized Living Spaces: Ensuring Residents’ Well-being
Globally, there is growing demand for buildings, homes, and communities that promote a healthier lifestyle and protect residents’ well-being, creating vast potential for the wellness real estate sector. Traditionally, wellness real estate was associated with resort properties and retirement communities. However, there is now a broader understanding of wellness real estate that incorporates features such as enhanced air filtration, better soundproofing, facilities for outdoor exercise, ample community spaces, and access to nature.
This growing demand for homes that blend natural elements with modern amenities has led to the emergence of all-inclusive urban areas, a model that is highly popular in developed countries like Japan, Singapore, and China. In Vietnam, this model has gained traction with the introduction of projects such as Vinhomes Smart City, Vinhomes Grand Park, and Vinhomes Ocean Park.
A key objective in Vinhomes’ sustainable development strategy is to create people-centered urban areas that provide the most suitable, convenient, safe, sustainable, and happy living environments for residents. In these communities, essential amenities and services such as hospitals, schools, shopping centers, parks, plazas, playgrounds, sports facilities, and entertainment areas are all within easy reach, ensuring a high quality of life for residents. Additionally, community activities are continually promoted to encourage a green, civilized, and modern lifestyle, contributing to the creation of some of the most sustainable and livable urban areas in the world.
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.
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