Domestic real estate to see ’hot’ development
The domestic property market this year would see “hot” development as Vietnam would be one of five best prospective markets in the Asian region, experts said.
Buildings and property projects around My Dinh - Cau Dien in Hanoi (Photo: enternews.vn)Hanoi (VNA) - The domestic property market this year would see “hot” development as Vietnam would be one of five best prospective markets in the Asian region, experts said.
Marc Townsend, CBRE Vietnam Director told the “Real Estate Conference 2016: New Hopes, New Challenges” held in Hanoi on May 17 that the country’s real estate market had gradually recovered from the global financial crisis in 2008.
He said that selling prices of high end apartments in Hanoi and HCM City would see strong growth amid increasing land prices.
CBRE forecast that the two big cities would see development in urban areas. The middle housing segment would dominate the market with average price of 1 billion VND (44,984 USD).
In the year 2016, the office segment would be the main target. Hanoi and HCM City would still draw attention and attract foreign direct investment when Trans-Pacific Partnership (TPP) comes into effect.
He also added that the resort segment would be crowded as Vietnam had emerged as one of the new destinations for resort development while industrial real estate was also expected to strongly develop when multinational groups expand their operations in Vietnam to take advantage of the TPP.
Vietnam should increase transparency in approving projects and tighten management to attract more investors, he added.
Sharing the ideas, Nguyen Duc Thanh, director of the Vietnam Institute for Economic and Policy Research, said that the property market had been promoted by several positive macroeconomics factors. The Law on Housing 2014 and Real Estate Trading Law 2014 had provided loose policies to spur the market’s development.
“In addition, effect of the TPP would ensure higher FDI inflows into Vietnam, of which a major part would enter the estate market. The stable economic growth and increasing savings among residents would be an opportunity for the market to receive a big investment from home buyers and investors,” Thanh said.
He said the housing prices in Hanoi and HCM City would be cheaper than countries such as China and Singapore. The estate market therefore would still have potential for further development.
“Bubbles in the property market will not be seen at the moment,” he said.
Vu Van Phan, head of the Ministry of Construction’s Housing and Real Estate Market Management Department, said the market would maintain its stable development and slight growth rate.
Phan said Decree 36 would reduce shortcomings for more healthy development but not tighten credit in the market.
“Moreover, the Law on Real Estate Trading is already in effect for the year. We have to welcome opinions to better support property developers,” he added.-VNA
You should also see
Airports to offer 9,000 domestic flights during upcoming holidays
Vietnamese airlines are expected to operate 9,000 flights on domestic routes to meet the travel demand during the upcoming National Reunification Day (April 30) and May Day (May 1) holidays, according to the Airports Corporation of Vietnam (ACV).
See more
Business
Vietnam’s rice exports may exceed 2024 target
With positive results recorded so far, Vietnam can exceed its target of 7.6 million tonnes in rice export volume set for 2024, Nguyen Ngoc Nam, Chairman of the Vietnam Food Association, said at a conference in the Mekong Delta city of Can Tho on April 26.
Business
Ample room for Quang Ninh to attract FDI
The northeastern province of Quang Ninh has ample room to attract foreign direct investment (FDI) and realise the goal of attracting 3 billion USD in FDI this year and 10 billion USD in the 2020-2025 period.
Business
Long An, Dong Nai introduce strengths in RoK
The southern province of Long An and Dong Nai introduced their investment climate as well as socio-economic development orientations at an investment promotion conference held in the Republic of Korea (RoK) on April 26.
Business
Vietnam makes initial efforts to approach creative industries: CIEM
Vietnam has made initial efforts to approach creative industries and services, particularly a policy framework related to creative economy development, according to a new report released by the Central Institute for Economic Management (CIEM).
Business
HCM City wants to become major partner, customer of NVIDIA: Official
Chairman of the People’s Committee of Ho Chi Minh City Phan Van Mai has told the Vice President of Worldwide AI Initiative at NVIDIA, Keith Strier that the city wants to become a major and good partner and customer of the firm in Vietnam.
