The domestic real estate market is expected to recover in the secondhalf of this year but the recovery will only occur in some segments ofthe sector, said an official of the House and Real Estate MarketManagement Department.
Vu Xuan Thien, deputy head of thedepartment under the Ministry of Construction, forecast that in thesecond half of this year, the market would see a recovery in low andmedium-price apartments as well as villas and houses located in suburbanregions at reasonable prices.
According to Thien, the second half of the year will be good time for the people to buy property at reasonable prices.
Surges in housing and property prices were less likely, he said.
The existing challenges faced by the property market would remain inthe first half of this year, he said, due to the impacts of policies oncurbing inflation and stabilising the macro-economy.
Trading activities on the domestic property market have almost stopped,he said, as prices are still extremely volatile. The market has failedto focus on projects that meet the people's demand, especially housesand apartments for rent. Construction of housing or apartment projectsis progressing slowly.
Thien said the existingdifficulties experienced by the domestic property market are largely aresult of a lack of timely guidelines from authorities.
In addition, some property development and trading companies who lackprofessionalism and adequate financial sources are complicating matters,he said.
Le Thien Linh, head of the General ManagementDivision of LILAMA Joint Stock Company, said difficulties in securingcapital have forced his company to focus on manufacturing andconstruction in stead of property, which has been one of the company'snon-core businesses during the past few years.
Meanwhile, few property companies have large enough sources of capital to finance their projects.
Le Thanh Than, director of Lai Chau Private Construction Company, said his firm is an exception.
The company has enough funds for its property projects as it does notrely on banks, said Than, instead using funds from its hotel and tourismbusinesses to invest in property development. -VNA
Vu Xuan Thien, deputy head of thedepartment under the Ministry of Construction, forecast that in thesecond half of this year, the market would see a recovery in low andmedium-price apartments as well as villas and houses located in suburbanregions at reasonable prices.
According to Thien, the second half of the year will be good time for the people to buy property at reasonable prices.
Surges in housing and property prices were less likely, he said.
The existing challenges faced by the property market would remain inthe first half of this year, he said, due to the impacts of policies oncurbing inflation and stabilising the macro-economy.
Trading activities on the domestic property market have almost stopped,he said, as prices are still extremely volatile. The market has failedto focus on projects that meet the people's demand, especially housesand apartments for rent. Construction of housing or apartment projectsis progressing slowly.
Thien said the existingdifficulties experienced by the domestic property market are largely aresult of a lack of timely guidelines from authorities.
In addition, some property development and trading companies who lackprofessionalism and adequate financial sources are complicating matters,he said.
Le Thien Linh, head of the General ManagementDivision of LILAMA Joint Stock Company, said difficulties in securingcapital have forced his company to focus on manufacturing andconstruction in stead of property, which has been one of the company'snon-core businesses during the past few years.
Meanwhile, few property companies have large enough sources of capital to finance their projects.
Le Thanh Than, director of Lai Chau Private Construction Company, said his firm is an exception.
The company has enough funds for its property projects as it does notrely on banks, said Than, instead using funds from its hotel and tourismbusinesses to invest in property development. -VNA
