Property services firm CB Richard Ellis Viet Nam predicts that moreinvestors will be able to capitalise on opportunities in Hanoi 'sreal estate market this year, as last year's tough market conditionsease.
"For some people, companies and individuals, 2012 will be a year whenVietnam finally becomes a reality," said CBRE Vietnam managing directorMarc Townsend at the firm's fifth annual "Fearless Forecast"presentation in Hanoi on Feb. 16.
"If you've beenlistening to me and CBRE's research, you know that certain sectors haveseen prices declining," Townsend said. "Some sectors have seen pricesdeclining for over three years. There has been pain in the market, withcash flows being challenged as restrictions on capital flows came intoplace and buyer appetite faded."
But he noted that rising auto sales suggested that Vietnamese consumers have money to spend.
"Mirroring the growth in sales of entry-level cars, we expect moreaffordably-priced residential sectors, targeted at the growing middleclass, to perform strongest," he said. "While the rate of home sales inHanoi has been significantly lower than in previous years due tolarge new supply, the actual number of units sold was not below thehistorical average, suggesting demand potential."
Meanwhile, Townsend said, Hanoi 's infrastructure is on its way tothe next level. In the next four years, different areas of the city willbe conveniently connected by new elevated highways, metro lines, andadditional bridges. By then, the psychological barrier of traveling tothe other bank of the river, or to certain suburban districts, will belifted, bringing people and buildings closer.
Hepredicted that price levels in the Ha Noi residential sector would startleveling off, following the trend in HCM City over the last fewyears.
"In regards to the property market, people aresimply sitting on the sidelines. The price of gold is at an all-timehigh, and when that starts to fall, people will move out of gold andcapitalise on their profit by going into real estate," he said.
As for the commercial property sector, Townsend noted that shoppingcentres outside of the central business district face fiercecompetition. Further new supply in 2012 will mean more competition andmore vacant retail space.
He also predicted that localhoteliers will continue to be active in the mergers and aquisationsmarket, while international hoteliers maintain a long-term interest inthe Hanoi market.
"The past 12 months have seen thegrowth of the institutional investment deal in Vietnam , with notabletransactions occurring for foreign investors. We believe that thesedeals will pave the way for further activity in the years ahead, with2012 being no exception."
With developers facing cashflow problems and many properties already viewed as distressed, he saidthe current market offers an opportunity for foreign investors./.
"For some people, companies and individuals, 2012 will be a year whenVietnam finally becomes a reality," said CBRE Vietnam managing directorMarc Townsend at the firm's fifth annual "Fearless Forecast"presentation in Hanoi on Feb. 16.
"If you've beenlistening to me and CBRE's research, you know that certain sectors haveseen prices declining," Townsend said. "Some sectors have seen pricesdeclining for over three years. There has been pain in the market, withcash flows being challenged as restrictions on capital flows came intoplace and buyer appetite faded."
But he noted that rising auto sales suggested that Vietnamese consumers have money to spend.
"Mirroring the growth in sales of entry-level cars, we expect moreaffordably-priced residential sectors, targeted at the growing middleclass, to perform strongest," he said. "While the rate of home sales inHanoi has been significantly lower than in previous years due tolarge new supply, the actual number of units sold was not below thehistorical average, suggesting demand potential."
Meanwhile, Townsend said, Hanoi 's infrastructure is on its way tothe next level. In the next four years, different areas of the city willbe conveniently connected by new elevated highways, metro lines, andadditional bridges. By then, the psychological barrier of traveling tothe other bank of the river, or to certain suburban districts, will belifted, bringing people and buildings closer.
Hepredicted that price levels in the Ha Noi residential sector would startleveling off, following the trend in HCM City over the last fewyears.
"In regards to the property market, people aresimply sitting on the sidelines. The price of gold is at an all-timehigh, and when that starts to fall, people will move out of gold andcapitalise on their profit by going into real estate," he said.
As for the commercial property sector, Townsend noted that shoppingcentres outside of the central business district face fiercecompetition. Further new supply in 2012 will mean more competition andmore vacant retail space.
He also predicted that localhoteliers will continue to be active in the mergers and aquisationsmarket, while international hoteliers maintain a long-term interest inthe Hanoi market.
"The past 12 months have seen thegrowth of the institutional investment deal in Vietnam , with notabletransactions occurring for foreign investors. We believe that thesedeals will pave the way for further activity in the years ahead, with2012 being no exception."
With developers facing cashflow problems and many properties already viewed as distressed, he saidthe current market offers an opportunity for foreign investors./.
