While the rest of the world is still in the battle against coronavirus and each countries respective economies are falling, Vietnam is enjoying incredible positive GDP growth and an overall real estate boom.
In most parts of the world, people are losing jobs because of the global health crisis's restrictions. Rents are also at their highest despite the last of demand. But while other countries are at the edge of collapsing, Vietnam proves that a country can still prosper despite a worldwide pandemic.
Vietnam Covid Response
Vietnam is one of the countries with incredible pandemic responses. When the COVID-19 started spreading around the globe last year, the so-called "Land of the Ascending Dragon" is quick to close its borders, schools, and businesses, basically putting the country on early lockdown to prevent the coronavirus from spreading from its people.
As of writing, Vietnam has only registered a total of 2,631 cases, and only 35 of which are the death toll caused by COVID-19. Although there are still some active cases in the country, their average recorded cases per day are only seven, and everything is under control by their health department.
As a result, the country has lifted quarantine restrictions in May 2020 - roughly three months since the pandemic shocked the world. Vietnam is quick to get back to its normal life with all sectors and businesses fully functioning.
Growth Amidst Pandemic
At the height of the pandemic, Vietnam outshined other Asian countries by posting a GDP growth of 2.9%.
One of the main factors that played a massive role in this economic growth is how the country's real estate industry has flourished even after the pandemic. Despite the virus's threats, Vietnam's real estate remained strong, with both the industrial and residential sectors leading the victory.
Vietnam Industrial Real Estate
The industrial sector is now considered the star of Vietnam's real estate industry. Even before the pandemic, big companies such as Nike, Adidas, and Samsung decided to migrate from China to Vietnam due to the former's increasing production cost and trade war against the United States.
According to data by Cushman & Wakefield, in 2019, Ho Chi Minh City's industrial rents grew by 9.0%. During the pandemic, the Vietnam market responded to increased manufacturing demand and gained another 10.6% in 2020.
Vietnam Residential Real Estate
In terms of the housing market, this Asian country has been consistent in posing unprecedented growth before the pandemic. The limited investment option outside the housing market resulted in increased demand for apartments, which exceeded the units' current supply as many developers sold out shortly after launching.
In three years, between 2017 to 2020, apartment prices in Ho Chi Min City grew by a whopping 90%, with a recorded 12.8% increase in 2020 alone.
Vietnam Commercial Real Estate
In other countries, the commercial spaces suffered after most employees shifted to remote work. But in Vietnam, office rents even rose by 1.7% in 2020, as per Cushman & Wakefield report.
Meanwhile, hotels experienced a wreaked havoc with only 20-30 percent occupancy. But Vietnam is hopeful to see gradual recovery, considering how the travel industry performed before the pandemic.
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