Viet Nam's social and economic factors are supporting the growth of its real estate market, which has bottomed out, an executive at property consulting firm Savills Vietnam has said.

A corner of a low income housing and apartments project (Photo: vietq.vn)

Over the past 20 years that 17 – 20% of remittances flowing into the country went into direct property investment.

Recently outward flow of capital had accelerated, noticeably from Singapore, the Republic of Korea, and Japan.

The amended Law on Housing effective from July 1, 2015, which will enable overseas Vietnamese and foreigners to own houses in the country, is expected to attract a new wave of investment.

Viet Nam's coastline could quickly draw foreign investors, with residential products of international standards and oriented towards foreign purchasers already being available.

According to Savills Vietnam, the lowering lending rate is helping revive the market.

The country's urbanisation rate, from less than 20% in 1995 to 34% last year and its rapidly growing middle class — expected to reach 33 million by 2020 from 12 million in 2012 — are other positive factors for the property market.

(Source: VNA)