REAL ESTATE MARKET DEVELOPMENT DRIVEN BY REPUTATION

Top names among the Top 10 Reputable Property Developers recently announced by Vietnam Report include Vingroup and Novaland. Over the past few years, Vingroup has become a leading real estate developer with a wide range of products ranging from home, office, condominium to shophouse, condotel, and office. Meanwhile, Novaland has been standing firm in the south market with financial strength and large land fund.

In the top Top 10 Reputable Property Developers, Building Material Companies and Contractors 2018, Coteccons and Hoa Binh Corp are two big names honoured as responsible, experienced and highly reputed contractors.

Among the most reputable building materials companies in 2018, Hoa Phat Steel or Viglacera Steel are named among the oldest and largest companies in construction materials, associated with hundreds of products and works across the country. These are also the first brands to appear in the minds of more than 50 per cent of customers surveyed.

3 opportunities - 4 challenges - 5 trends

According to the survey of enterprises and experts by Vietnam Report, the real estate market in 2018 basically retains stability in the medium term. Opportunities and alternatives create a trend for the market.

Three opportunities are a good economic growth rate, growing domestic enterprises; newly-signed Comprehensive and Progressive Agreement for Trans-Pacific Partnership trade agreement to attract more foreign investment; and approval for establishment of special economic zones.

Four challenges: macro-economic instability in the region especially in the East Sea; State divestment making capital disputes more severe; virtual money affecting the market; and condotel, officetel and hometel segments with potential risks due to lack of clear management policies.

Five trends include: M&A trend for postponed or unsuccessful projects that will continue to develop; special economic zones that continue to rise and will become a "promising land" and attract real estate developers; condotel, officetel and hometel model that will spread all over and can be extended to Hai Phong and Vung Tau; low cost apartments that will attract more developers; and the shrinking of the traditional market because of emerging markets.

How to maintain reputation?

Real estate, construction, building materials sectors in the next period will be associated with 4.0 Industrial Revolution. According to a survey by Vietnam Report, besides traditional word-of-mouth marketing, customers gradually approach real estate information on the Internet. More than 50 per cent of respondents said they looked for information on Internet homepages and forums on social networks. The "collision" between Vietnamese enterprises and 4.0 Industrial Revolution will gradually change the production and business of these enterprises. Being more versatile and more modern, enterprises make more profits with the support of technology, modern equipment, and high-quality human resources such as the appearance of the D&B model (design and build) in recent years in the country.

Due to increasing demands of customers, market information is more and more transparent and timely; investors and contractors will pay increasing attention to the sustainability and long spans of projects. According to the experts, in 2017, the quality of output products was improved, in line with the improved quality of investors, managers, contractors, technology, construction equipment. Under the pressure of increasing competition domestically and internationally, in the near future, inefficient enterprises will gradually be eliminated. In order to stay on the market, developers are required to demonstrate their true capability; construction contractors also need to continually improve the quality and professionalism of their projects.

From the customer survey of Vietnam Report, prestige in the media is one of the top three reasons that customers choose products and services of enterprises in real estate, construction, and building materials. The decisive factor is that enterprises continuously research and develop new products for a wide range of customers (70 per cent) and positive evaluations on business activities of enterprises (67.5 per cent). Standing on the corporate side, the quality of the work, financial capacity, and long-term brand vision are three important business objectives to maintain its position and enhance its reputation.

Source: VCCI