Metro line and real estate market: what is happening in Vietnam
The economy is an extremely large sector. It would be simplistic to concentrate exclusively on a part of the entire economic system of a company.
Whether it is a particularly developed or growing state, there is no doubt: each sector is closely linked to the others and influences the results. We can therefore say that a correct economic analysis of a sector guarantees an overall picture of the state of well-being of the state itself. A particular phenomenon that is characterizing Vietnam is born from the union between two distinguished economic sectors: that of innovation at the level of buildings and brick.
The recent acceleration operations in the construction of the first subway line in Ho Chi Minh City, a city named in honor of Vietnam's founding father Ho Chi Minh, have had positive effects on the Vietnamese real estate market. After years of stagnation that have obviously hibernated this sector, thanks to the improvement of the infrastructure mentioned above, the prices of the surrounding buildings seem to go up again. What does this mean in strictly economic terms?
The increase in the price of a property, usually derives from an increase in qualitative terms of the value of the property itself or, if the social situation was particularly stringent, would represent a probable solution against a government policy too open to international markets.
A sort of preventive protectionism. But this is not the case ! The planning and architecture department of this city has found that the construction of skyscrapers, shopping centers and residential areas has progressed hand in hand with other infrastructural projects, guaranteeing a general improvement of the metropolitan city itself.
The main provider of Vietnamese real estate services has predicted that the prices of land located within a 10-minute walk of subway stations could increase their prices up to 20% more within a month.
The same population has suffered an exponential increase, considering that the city and in general Vietnam, thanks to these development-oriented policies, have become increasingly adherent and competitive with respect to the needs of foreign investors.
At the same time a chain reaction was triggered, led by the government, aimed at creating new real estate projects, designed to accommodate and contain this demographic boom that is emerging in the last period of this nation.
In percentage terms, the number of real estate products along the Vietnamese metro lines has increased by 10% more than in other areas.
The behavior of investors has also changed: we have moved from the search for lease contracts to the deal deriving from a deed of sale.
What to say, it really seems that this year has begun in a big way for this country that, for years, has been subjected to particularly difficult economic - social situations.
We therefore hope that these data can be confirmed even in the following months!
Whether it is a particularly developed or growing state, there is no doubt: each sector is closely linked to the others and influences the results. We can therefore say that a correct economic analysis of a sector guarantees an overall picture of the state of well-being of the state itself. A particular phenomenon that is characterizing Vietnam is born from the union between two distinguished economic sectors: that of innovation at the level of buildings and brick.
The recent acceleration operations in the construction of the first subway line in Ho Chi Minh City, a city named in honor of Vietnam's founding father Ho Chi Minh, have had positive effects on the Vietnamese real estate market. After years of stagnation that have obviously hibernated this sector, thanks to the improvement of the infrastructure mentioned above, the prices of the surrounding buildings seem to go up again. What does this mean in strictly economic terms?
The increase in the price of a property, usually derives from an increase in qualitative terms of the value of the property itself or, if the social situation was particularly stringent, would represent a probable solution against a government policy too open to international markets.
A sort of preventive protectionism. But this is not the case ! The planning and architecture department of this city has found that the construction of skyscrapers, shopping centers and residential areas has progressed hand in hand with other infrastructural projects, guaranteeing a general improvement of the metropolitan city itself.
The main provider of Vietnamese real estate services has predicted that the prices of land located within a 10-minute walk of subway stations could increase their prices up to 20% more within a month.
The same population has suffered an exponential increase, considering that the city and in general Vietnam, thanks to these development-oriented policies, have become increasingly adherent and competitive with respect to the needs of foreign investors.
At the same time a chain reaction was triggered, led by the government, aimed at creating new real estate projects, designed to accommodate and contain this demographic boom that is emerging in the last period of this nation.
In percentage terms, the number of real estate products along the Vietnamese metro lines has increased by 10% more than in other areas.
The behavior of investors has also changed: we have moved from the search for lease contracts to the deal deriving from a deed of sale.
What to say, it really seems that this year has begun in a big way for this country that, for years, has been subjected to particularly difficult economic - social situations.
We therefore hope that these data can be confirmed even in the following months!
