Future of real estate in the post-COVID-19 world

The year 2021 is ending with bright colours as real estate investment has become buzzing again. Reports from well-known worldwide organisations have also delivered a bright picture in the late months of the year, creating momentum for 2022.

Despite the impact of the pandemic, real estate markets across the world such as the US, Australia, Canada, and South Korea are still experiencing a “fever”, with skyrocketing real estate prices.

In the US, new houses are being “hunted”, causing house prices to jump 20-30 per cent compared to pre-pandemic levels. Surging house sales and prices were attributed to a combination of low-interest rates, government stimulus packages, and a rush of homebuyers looking to expand their living space while staying at home during the pandemic.

Data from the Australian Bureau of Statistics (ABS) has also revealed that Australian residential property prices increased by 6.7 per cent in the second quarter of 2021. House prices are higher than they were in pre-COVID-19, with a staggering 19 per cent jump.

In China, a series of post-COVID-19 government regulations and the impact of Evergrande have limited real estate investment opportunities, causing investors to redirect their cash flows to Southeast Asia. Many Chinese and Taiwanese investors have been paying greater attention to the industrial and residential real estate market in Vietnam.

Future of real estate in the post-COVID-19 world

Albeit Vietnam was affected by the fourth wave of COVID-19 from late April, the country’s real estate market has always been the centre of attraction for world investors. Projects located in satellite cities, which have space to develop infrastructure and utilities, always draw the attention of investors from China, Taiwan, Japan, South Korea, Singapore, and more as this is a potential market for foreign investors wanting to diversify their investment portfolios and looking for profit potential.

Especially after Vietnam’s southern localities have eased social distancing measures, the real estate market began to show signs of growth and strong recovery. One highlight, in this case, was the auction event for “golden” land areas in Ho Chi Minh City on December 10. The winning bid was nearly $105,000 per square metre, far exceeding the world’s most expensive real estate areas in the US and Hong Kong (China).

That means that despite the impacts of the fourth wave of COVID-19, real estate investors still see opportunities.

Source: VIR.