Analysis of the Real Estate and Mortgage Market in Vietnam (2016 - 2021)

Analysis of the Real Estate and Mortgage Market in Vietnam (2016 - 2021)

Purchase Report

The total market size of all types of  properties in Vietnam is estimated at USD XXX million as of 2016. We expect this to grow at CAGR X% over the forecast period. This growth is a weighted average of growth rates across segments like residential, commercial, retail, institutional, and others. There is a growth in seaside luxury villas in the residential segment due to a recent change in residential property ownership laws in Vietnam. With the real estate market in Vietnam reviving after a few troubled years, property developers are optimistic, particularly in the largest cities of Vietnam: Ho Chi Minh City and Hanoi. Young professionals are the primary targets for developers, who are offered the housing projects.

Drivers

FDI inflow has increased year-on-year because of the new foreign investment law, which lets foreign nationals and entities own residential units (with some restrictions). These properties can be inherited. In some cases, more than 70% of units were sold to foreigners and foreign firms buying accommodation for their  employees; like the case of Samsung and Intel, whose employees work in the Saigon Hi-Tech Park. With its well-preserved cultural diversity and natural habitats, Vietnam is a popular tourist destination. Vietnam is well connected to two of the world’s biggest tourism markets, China and Russia, which jointly contribute to around 52% of tourism inflow. 

Restraints and Challenges

The years of war have hed the infrastructure of Vietnam. Currently, there are certain infrastructure related challenges faced by the country. These include the railway linking Hanoi and Ho Chi Minh City, which is in need of an upgrade, the hazard of ports reaching maximum capacity with increased trade volume, and the fact that only 20% of national roads are paved. In most countries with sound real estate channels, capital sources for real estate industry typically include REITs, retirement funds, FDI & FII capital and saving funds, among others. However, in Vietnam, contractors and real estate developers rely heavily on credit from the bank to construct new units; given that owner’s equity amounts to no more than 15% to 20%, and about 70% to 80% of the capital is arranged from bank loans. Furthermore, about 65% of the collateral is real estate.

Opportunities

Vietnam’s property market is gaining traction, owing to strong economic growth, and an increase in the number of people who fall under the middle-class category. The market is reviving after nearly five years of housing slump. However, the most important factor driving the market is the new housing law and the law on real estate businesses. These laws came into effect on July, 2015 and under these laws, foreigners and Vietnamese living abroad are allowed to legally own, sell and transfer real estate properties.

Key Developments

  • Foreigners granted a Vietnamese visa, foreign investment funds, banks, firms with branches in Vietnam and representative offices of foreign companies can now purchase residential property in Vietnam. At present, foreigners can own all types of residential properties, including landed property, such as villas & townhouses and condominiums
  • Only 2 top leaders have semi-automated valuation mechanisms in place
  • Controls for valuation, and thus mortgage, now lie with the Ministry of Finance, from the Ministry of Construction as of last year. This process of transition is expected to take 2 years. Valuation is now deliberately called “Price Assessment” in the industry, in accordance with government mandated terminology. 

About the Market

  • PESTLE Analysis (Overview): Macro market factors pertinent to this region
  • Market Definition: Main as well as associated/ancillary components constituting the market
  • Key Findings of the Study: Top headlines about market trends & numbers
  • Market Dynamics:

o Drivers: What are the key factors driving growth in the market?

o Restraints: Most relevant threats and restraints which hinder the growth of the market?

o Opportunities: Sectors of high return or quick turn around on investment?

o Market Concentration: Porter’s 5 Forces Analysis quantified by a comprehensive list of parameters

  • Chain Analysis:
  • Competition:

o Market Share Analysis: Top players in the market (by value and volume)

o Company Profiles: Pertinent details about leading, high growth, and innovation-motivated stakeholders with contact, operations, product/service offerings, financials and strategies & insights

1 Introduction

1.1 Scope of the Report

1.2 Regional Analysis

1.2.1 PESTLE Analysis

1.2.2 Analysis of Ease of Doing Business

2 Market Dynamics

2.1 Drivers

2.2 Restraints

2.3 Opportunities

2.4 Trends

3 Market Demand Analysis

3.1 Socio-Economic Segmentation

3.2 Demographic Strengths & Weaknesses

3.3 Spending Patterns

3.4 Target Market Identification

4 Iran Real Estate Market

            4.1 Market Data

4.1.1 Offices

                                    4.1.1.1 Market Size

                                    4.1.1.2 Market Share Analysis

                        4.1.2 Retail

                                    4.1.2.1 Market Size

                                    4.1.2.2 Market Share Analysis

                        4.1.3 Industrial

                                    4.1.3.1 Market Size

                                    4.1.3.2 Market Share Analysis

                        4.1.4 Residential

                                    4.1.4.1 Mortgage Market Trends

                                    4.1.4.2 Market Size

                                    4.1.4.3 Market Share Analysis

                        4.1.5 Other

                        4.1.6 Mortgage Market in Iran

            4.2 Stakeholders in the Industry

                        4.2.1 Value Chain Analysis (with major stakeholders)

                        4.2.2 Key Vendor Profiles

5 Laws and Regulations Related to Real Estate and Commercial Property Holding

5.1 Overview

5.2 Mortgage Market Laws

5.3 Loan Brokerage Laws

6 How to Register a Company in Iran

6.1 Registration Processes

6.1.1 Ministries Involved

6.1.2 Criteria and Conditions

6.1.3 List of Forms & Documents

7 Sources

8 Disclaimer

Purchase Report

Our Clients Include View All

Looking to Customize Report?

Complete your payment details below

Shipping & Billing Information

Payment Information