“SUSTAINABLE DEMAND: SYNCING THE CYCLE”
24/08/2023
Ho Chi Minh City, August 23, 2023 – Arcadia Consulting Vietnam recently hosted a market briefing, “Sustainable Demand: Syncing the Cycle”. The event was conducted by Marc Townsend – Senior Advisor of Arcadia Consulting Vietnam.
The Vietnamese real estate market is beginning to see “green shoots” of a recovery, said Marc Townsend at the event. “This is only the beginning of green shoots. Underpinning the market is sustainable long-term demand, and this morning we talked about the perfect balance of Vietnam’s demographics, urbanization, and housing affordability. The breakthrough pricing policies we are currently seeing from the strongest developers are stoking that affordability,” he continued.
The country’s residential market is now experiencing a thaw, thanks in part to the invaluable support of the government in restoring the confidence in all stakeholders. This support manifests in various forms, including the implementation of mandatory auctions for project development rights and the facilitation of direct negotiations between landowners and developers for land clearance.
As the real estate market continues to recover and evolve, it is crucial for buyers, sellers, and industry professionals to stay informed, adapt to changing conditions, and seize opportunities as they arise while maintaining a long-term perspective. Industry insiders are also closely watching the secondary residential market for signs of a rebound. “These are only new green shoots, we think secondary residential prices will continue rebalancing. But demand is picking up with more affordable payment terms and lower interest rates. As buyers begin to see prices and demand start moving again, it will create urgency, underpinned by sustainable long-term demand,” said Townsend.
The local market is experiencing a notable transition towards smaller households, and developers recognize the constant and enduring demand for this type of property. This helps algin prices with supply to bolster the options available to first-time homebuyers.
Looking forward with better clarity on Vietnam’s policies and an improving economic outlook, investors are seeing the growing opportunities for alternative asset classes such as purpose built student accommodations, data centers and senior living. Townsend remarked, “The primary drivers of residential demand in Vietnam over the next five decades will be demographics, urbanization, and affordability. The strongest developers will survive and have even seen strong demand at recent launches. But all this activity will flow through to other sectors, and we hope to soon see green shoots in some of these alternative sectors like senior living and data centers.”
Marc Towsend is a real estate investment and development veteran holding leading roles for global consulting firms in Singapore, Ho Chi Minh City, Hanoi, Manila, Phnom Penh and Hong Kong. He currently engages as a senior advisor to a Pan-Asian real estate fund, serves as Chairman of CBRE Cambodia and The Creator of Opportunities at Levitate.
Arcadia Consulting is a boutique real estate brokerage firm focusing on luxury residences, marketing of unique overseas and local projects, investment sales brokerage and deal sourcing. Founded in Singapore in 2020, Arcadia Consulting is an affiliate of Leading Real Estate Companies of the World® – International Ltd. and its luxury marketing division, Luxury Portfolio International®.
Looking to capitalize on Vietnam’s growing importance in the global supply chain, fast expanding economy and the rapid rise in the high net worth group of clients, Arcadia Consulting picked Vietnam as its next destination for expansion. Officially launched in July 2022, Arcadia Consulting Vietnam’s approach features in-depth influence and local expertise to ensure portfolio diversification and wealth management, residential and commercial leasing advisory, sustainable masterplan and built environment advisory, real estate agent training and bespoke experiential luxury of services for customers and developers.
