Vietnam property market on road to recovery

Illustrative image (Source: Internet)

Vietnam's property market is on the path to recovery and promises to remain busy in the last few months of the year, the Vietnam Real Estate Association said.

The association's figures revealed rising liquidity and falling inventories of the property market, with large numbers of successful transactions lowering inventories, especially in major cities such as Hanoi and Ho Chi Minh City.

Statistics showed that as of the end of September, property stockpiles declined to nearly 59.4 trillion VND (2.64 billion USD), dropping by more than half of the figure recorded in the first quarter of 2013.

The current property stockpile includes 11,380 apartments worth about 17.4 trillion VND (733.3 million USD), 8,542 houses worth 14.6 trillion VND (648.89 million USD) and seven million square metres of land worth 22 trillion VND (977.7 million USD).

About 5,300 successful transactions were recorded in the nine-month period in Hanoi, representing a rise of 70 percent over the same period last year. The southern market witnessed 5,300 successful transactions from the beginning of this year, double the figure a year ago.

The recovery of the property market was also reflected in the rising number of new firms operating in property investment and business, the association said.

The association's statistics revealed a hefty 78 percent rise in the number of property start-ups over the same period last year, together with a drop of 30 percent and 7.2 percent in the numbers of firms being dissolved or temporarily halting operations, respectively.

The anticipated rise in the inflow of foreign direct investment (FDI) was also expected to boost the development of the property market, the association said.

It said the supply of high-end apartments would rise in the remaining months of the year, especially in large cities.

High-end apartments accounted for nearly one-third of the total number of apartments that were put on sale so far this year, with the successful transactions accounting for 22 percent of the total transactions, up from six percent in 2013 and 18 percent last year, the association said.

It estimated that 4,300 high-end apartments would be released in the Hanoi market towards the end of the year.

There would be mild increases in property prices, driven by the overall market recovery and rising demand, especially from foreigners for high-end apartments, the association said.-VNA