The repatriation trend of overseas Vietnamese - the driving force behind Nghe An real estate
(Baonghean.vn) - In Nghe An, the real estate market has many signs of improvement with the appearance of many big names with large-scale projects creating a new vitality, strongly impacting the Nghe An real estate market.
Along with that, the repatriation trend of overseas Vietnamese is leading to a wave of remittances pouring into the real estate market in this province.
According to the World Bank, in 2019, the amount of remittances to Vietnam is estimated at 16.7 billion USD. 2019 is also the 5th time Vietnam has entered the top 10 countries receiving the largest remittances in the world. The flow of remittances to Vietnam has increased significantly from 13.8 billion USD in 2017 and skyrocketed to 16 billion USD in 2018. Statistics also show that at least 25% of remittances are invested in real estate every year. In addition to direct transactions, most overseas Vietnamese ask relatives to buy houses and land or invest in real estate projects. According to the assessment, the number of remittances invested in real estate is expected to increase sharply in 2020.
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| Vietnam continues to receive impressive levels of remittances. Source: World Bank. |
Nghe An real estate market has also seen many clear improvements in recent times. The appearance of many real estate giants with large-scale projects in many localities of the province is creating a new vitality, strongly impacting the Nghe An real estate market. It can be seen that many big names such as TNR Holdings Vietnam (member of TNG Holdings Vietnam Group), Vingroup, T&T Group, Eurowindows, ... all have large projects in this locality. Not only the appearance of "big guys", many local investors are also expanding strongly, creating an unprecedented dynamic atmosphere for the Nghe An real estate market.
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| TNR Stars Dien Chau Urban Area Project |
According to economic experts, the steady growth of remittances in recent years has demonstrated that overseas Vietnamese have always had confidence in domestic investment channels. Compared to the previous period, the real estate market is now more stable and healthy as the legal system is increasingly improved and many investors have restructured products according to actual needs, while focusing more on landscape and amenities. This makes overseas Vietnamese more secure about the domestic real estate market.
Land market "attracts" investors
According to real estate trading floors, the land segment always has the highest transaction rate, this rate is especially higher in districts with advantages in attracting investment. According to real estate brokers, the excitement of the land market in the districts can be explained by the rapid recovery and growth of the economy and the investment of many large investors here.
For example, in Dien Chau district, the appearance of modernly planned real estate projects, focusing on synchronous investment in utilities and landscapes such as the TNR Stasr Dien Chau ecological urban area project with many accompanying utilities such as commercial centers, supermarkets, entertainment areas, parks, etc. is contributing to creating a new urban face for Dien Chau as well as attracting great attention from investors.
Along with that, many investment, construction and development projects of industrial systems and auxiliary services have contributed to changing the infrastructure level here such as: Export Garment Factory Project of Nam Thuan Nghe An Joint Stock Company in Dien My commune with a total investment of 118 billion VND; VietChers Factory Project of Jumbo Deluxe Company Limited in Dien Truong commune with a total investment of more than 1,000 billion VND; Export Seafood Processing Factory Project in Dien Hung commune with a total investment of 154 billion VND; Factory of Foremart Corporation (Korea) in Dien Thinh commune with a total investment of 139 billion VND; Market and trade center system in Dien Thang with a total investment of 75 billion VND...
The influx of production projects has led to a surge in real estate demand to meet the housing needs of experts, managers and workers at the above projects.
Currently, the Nghe An provincial government also has a policy on building and developing connecting traffic infrastructure. The Ninh Binh - Bai Vot expressway is currently clearing land and is expected to open to traffic in 2022, shortening the travel time from Hanoi to Nghe An to more than 3 hours. This is also a significant boost to the Nghe An real estate market.
