High-end apartment buildings in Hanoi. Photo: VNA

Although supply has recently surged, there is not likely to be a real estate bubble in Vietnam, said CBRE’s Operational Director Richard Leech at a press conference in Hanoi on September 29.

According to Leech, speculation has been common in recent years but current purchases are being made largely by individuals for their own residential demand and, through support from newly secured legal frameworks, the real estate market is in stable conditions.

Investors have thoroughly studied the market’s demand to determine market segments, leading to faster liquidity, he added.

The macroeconomy has also stabilised in the last two years and actively contributed to the real estate market, helping it develop sustainably.

As per CBRE’s report, Hanoi’s real estate market in the third quarter of 2015 has seen an upward trend in both sales and transactions. About 9,160 apartments were offered on the market, doubling the amount the same period last year from 26 projects.

Apartments in the high-end segment continued to account for high density with 2,900 units offered in the reviewed period, or 30 percent of the total units offered to the market.

CBRE Deputy Director Nguyen Hoai An acknowledged that the real estate market has shown positive signs with 6,800 transactions, a 154 percent surge year-on-year.

CBRE experts said the average secondary price climbed 1.4 percent in USD and 7 percent in VND. New projects have higher prices than completed projects.

The Laws on Housing and Real Estate have been in effect for three months, attracting the attention of foreign buyers.

They, however, lack complete guidance, hindering the foreigners’ ability to take part in Vietnam’s real estate market.-VNA