Real estate market expected to be 'supported' by remittances

In 2021, Vietnam became one of the 10 largest remittance recipients in the world with 12.5 billion USD. This year, the amount of capital flowing into the country is expected to be higher than last year.

Remittances will "pour" into markets of potential provinces

Many experts believe that the real estate business situation will likely improve thanks to the increase in cash flow from remittances, FDI capital and the desire to own a house at the end of the year. “In the fourth quarter of 2022, liquidity in the market is still slow, but by the end of the quarter, the indicators will be better. The reason is that in the last quarter of the year, profit flows from production and business often flow into real estate, in addition, public investment and FDI capital are often boosted at this time. Remittances to the country are expected to attract 14-16 billion USD this year, which will help the market have better liquidity at the end of the year,” said Mr. Le Dinh Hao, Director of Business Division Batdongsan.com.vn.

Remittances are one of the major sources of foreign currency each year for Vietnam. Photo. Photo: Ngoc Thang

Sharing the same view, Mr. Nguyen Quoc Khanh, Vice President of the Real Estate Brokerage Association analyzed: “At the end of the year, there is always a flow of remittances and dividends from the business results of the year, they will think about where to put that money. This year, due to limited supply and high real estate prices in large cities, it is expected that this source of money will tend to flow into provincial markets with potential for economic and tourism development... There will not be a massive wave of loss cutting across the market as many people say, any project that cuts losses will still be cut, any project that increases prices will still increase. Because the taste of consumers for projects with standard legal documents, quality, well-planned, and unique designs is always present... With such projects, people buy, besides the purpose of serving the investment and use needs, also to affirm their own class as well as to make a priceless gift when they want to show their gratitude, repay the favor of previous generations or make an asset for future generations. after…”

In fact, many overseas Vietnamese with available funds are looking to buy real estate in their homeland. Among them, Nghe An, one of the localities with a large number of overseas Vietnamese as well as receiving a large flow of remittances. In the field of labor export alone, in 2021, Nghe An sent 11,210 people to work abroad under contracts, in 2022, this number is estimated at about 13,550 people. The average remittance sent home is from 15-30 million/person/month (according to the Department of Labor, Invalids and Social Affairs of Nghe An province). That does not include those who are settling abroad or studying abroad and then staying to work... With the spirit of loving their homeland, loving their family, always looking back to their roots, wanting to own for themselves or their family a spacious, unique property as a support when returning, Nghe An people living abroad often spend money to buy real estate in their hometown.

Real estate investment focus welcomes remittance flow

According to bank leaders, in recent years, the amount of remittances sent home during Tet usually increases by about 20-25% compared to other months of the year. This year, because Tet comes early, close to Christmas and New Year, overseas Vietnamese will focus on sending money home for relatives to celebrate Tet, give lucky money and lucky money. Therefore, the amount of remittances sent home promises to be very positive. This will encourage the real estate market to have many improvements.

Bustling Vinh City attracts a wave of investment at the end of the year. Photo: TL

Typically, in an emerging market like Vinh, in addition to direct transactions, many overseas Vietnamese also ask their relatives to buy land in their hometown for investment. The reason is that the Vinh real estate market still has many good growth opportunities when real estate prices are not yet commensurate with the current potential and expectations in the near future.

However, the investment “taste” of Vinh people has shifted. Instead of investing in central land, people tend to choose green ecological projects, which not only meet the standards of good quality of life but also possess good profit opportunities. As Ms. Thu Nguyen, a Vietnamese expatriate from Canada, shared about her home buying perspective: “Since moving to Ottawa, looking at the scenery here with mountains, rivers and large and small parks… I always think of my parents. When they were young, my grandparents worked hard to raise us in the harsh climate of the Central region, and when they are old, they just want to stay close to their homeland. My siblings and I are now all living abroad, so we really hope to find a house for our parents in a green project with synchronous infrastructure in our hometown, so that they can live close to their relatives and every time we bring our family back to visit, there will be enough places to play, eat… for the whole family without having to go far”.

The green color of nature was brought into the nearly 200-hectare mega-project by the Founder of Ecopark.

Responding to the actual needs of the market, recently, the Founder of Ecopark has developed the Eco Central Park project with a scale of nearly 200 hectares. on Nguyen Sy Sach extended street in Hung Hoa ward - one of the main roads of the city, only 10 minutes drive from the city center, 14 minutes drive from Vinh University, ... Through the main traffic routes such as Vinh - Cua Lo boulevard, Eco Central Park becomes the center of trade connection between Vinh city and Cua Lo town.

Residents can relax right in their own home at Eco Central Park

With the largest scale in Vinh City so far and developed according to the model of “city within a city”, this place will converge all the utilities such as commercial centers, bustling shopping and entertainment streets… creating the premise for business potential, worthy of being the place to return to for Nghe An people living far away from home.