Property companies nationwide geared up their operations right after theTet (Lunar New Year) holiday, accompanied by high expectations ofmarket recovery this year.
This is different from the previousyears, when transactions were often quiet in the month following Tet,reflecting the high hopes of property companies after a long freeze.
Accordingto statistics of the Vietnam Real Estate Association, 1,550 successfulproperty transactions were recorded in January, the month before the Tetholiday, three times higher than the same period last year.
Withcredit policies being eased and new policies such as allowingforeigners to own houses in the country about to come into force,property developers are aiming for higher targets this year.
NovalandCompany says that it expects the property market to thrive this year,adding that the company's sales are projected to increase by more than30 percent against last year, online newspaper Vnexpress reports.
FLC Group says that its profit this year might reach 1 trillion VND (46.94 million USD), more than double that of last year.
Propertygiant Vingroup aims to maintain a high growth rate in 2015, afterreporting a 51 percent growth in turnover in 2014 over the previousyear.
Several projects in the country's major cities also resumedconstruction after the nine-day Tet holiday, to speed up progress andto take advantage of the market recovery.
Nguyen Xuan Quang,chairman of the Nam Long Investment Corporation, says the prospects ofthe property market will be bright this year. As a result, severalproperty companies have set targets for higher turnovers and profitsthan the previous years.
Quang adds that the macroeconomy hasshown positive signs, such as a growing GDP, lower interest rates andabundant remittances, which will stimulate the property market towardsrecovery after a long freeze since 2007.
He points out that theconfidence of investors and buyers returned with many projects resumingconstruction right after the Tet holiday, with a higher supply ofapartments and booming mergers and acquisitions.
Still,low-priced apartments will remain the dominant market demand this year,while the demand for high-end apartments will rise, thanks to thegovernment's policy of allowing foreigners to buy houses in the country,he says.
However, Huynh Phuoc Nghia, an expert from the GlobalIntegration Business Consultants, says that property companies should becautious about their business plans this year. He points out thatalthough the market has shown signs of recovery, it will be difficult toreturn to the peak of 2007, adding that the maximum profit growthshould be expected at 15 to 20 percent.
Nghia says thatcompetition will grow harsh this year, weak companies will be eliminatedand chances will be better for companies that have prestige and offergood services and good quality.
Nghia lists the three kinds ofproperty that will be the most attractive for investors this year,thanks to stable and high profits, as being industrial zones, medium andhigh-end apartments and tourism property projects.
According to areport by Ban Viet Securities (VCSC), the easing of the credit policy,the policy to allow foreigners to buy houses in the country and thedevelopment of the infrastructure system will be the drivers for theproperty market's recovery this year.
VCSC says it is a good timeto buy houses or invest in the property market as the interest ratesare at their lowest in three years, adding that the low rates willencourage cash to flow into the property market rather than deposits.
Withabout 80,000 foreigners currently working in Vietnam, the policy toallow foreigners to buy houses in the country will heat up the propertymarket.
Infrastructure development also largely supports thedevelopment of the property market, VCSC says, adding that thegovernment's speeding up of infrastructure development is expected to beworth more than 3 billion USD this year.
Minister ofConstruction Trinh Dinh Dung has said that this year, the ministry willfocus on restructuring property products, especially housing projects,to meet the market demand, and ensure a healthy and sustainabledevelopment.-VNA
This is different from the previousyears, when transactions were often quiet in the month following Tet,reflecting the high hopes of property companies after a long freeze.
Accordingto statistics of the Vietnam Real Estate Association, 1,550 successfulproperty transactions were recorded in January, the month before the Tetholiday, three times higher than the same period last year.
Withcredit policies being eased and new policies such as allowingforeigners to own houses in the country about to come into force,property developers are aiming for higher targets this year.
NovalandCompany says that it expects the property market to thrive this year,adding that the company's sales are projected to increase by more than30 percent against last year, online newspaper Vnexpress reports.
FLC Group says that its profit this year might reach 1 trillion VND (46.94 million USD), more than double that of last year.
Propertygiant Vingroup aims to maintain a high growth rate in 2015, afterreporting a 51 percent growth in turnover in 2014 over the previousyear.
Several projects in the country's major cities also resumedconstruction after the nine-day Tet holiday, to speed up progress andto take advantage of the market recovery.
Nguyen Xuan Quang,chairman of the Nam Long Investment Corporation, says the prospects ofthe property market will be bright this year. As a result, severalproperty companies have set targets for higher turnovers and profitsthan the previous years.
Quang adds that the macroeconomy hasshown positive signs, such as a growing GDP, lower interest rates andabundant remittances, which will stimulate the property market towardsrecovery after a long freeze since 2007.
He points out that theconfidence of investors and buyers returned with many projects resumingconstruction right after the Tet holiday, with a higher supply ofapartments and booming mergers and acquisitions.
Still,low-priced apartments will remain the dominant market demand this year,while the demand for high-end apartments will rise, thanks to thegovernment's policy of allowing foreigners to buy houses in the country,he says.
However, Huynh Phuoc Nghia, an expert from the GlobalIntegration Business Consultants, says that property companies should becautious about their business plans this year. He points out thatalthough the market has shown signs of recovery, it will be difficult toreturn to the peak of 2007, adding that the maximum profit growthshould be expected at 15 to 20 percent.
Nghia says thatcompetition will grow harsh this year, weak companies will be eliminatedand chances will be better for companies that have prestige and offergood services and good quality.
Nghia lists the three kinds ofproperty that will be the most attractive for investors this year,thanks to stable and high profits, as being industrial zones, medium andhigh-end apartments and tourism property projects.
According to areport by Ban Viet Securities (VCSC), the easing of the credit policy,the policy to allow foreigners to buy houses in the country and thedevelopment of the infrastructure system will be the drivers for theproperty market's recovery this year.
VCSC says it is a good timeto buy houses or invest in the property market as the interest ratesare at their lowest in three years, adding that the low rates willencourage cash to flow into the property market rather than deposits.
Withabout 80,000 foreigners currently working in Vietnam, the policy toallow foreigners to buy houses in the country will heat up the propertymarket.
Infrastructure development also largely supports thedevelopment of the property market, VCSC says, adding that thegovernment's speeding up of infrastructure development is expected to beworth more than 3 billion USD this year.
Minister ofConstruction Trinh Dinh Dung has said that this year, the ministry willfocus on restructuring property products, especially housing projects,to meet the market demand, and ensure a healthy and sustainabledevelopment.-VNA
