Customers examine a model of the Marina Complex urban area, located on the riverside of Han River in Da Nang City, invested by Da Nang Marina Company Limited. (Photo: VNA) Hanoi (VNS/VNA) – Vietnam’sreal estate market will likely remain stagnant this year, unlike in 2017 whenprice increases were rampant in popular spots around the country, predicted deputyhead of the Department of Housing and Real Estate Management Nguyen Manh Khoi.
Khoi said there were unlikely tobe bubbles in the property market this year because the Government had gainedmore experience in management and supervision.
Vice Chairman of the Vietnam RealEstate Association (VNREA) Nguyen Manh Ha said the property market has beenstagnant in the first months of the year, especially in Hanoi and Ho Chi MinhCity.
Supply on the real estate marketin Hanoi in the period was reduced by 25 percent from the same period lastyear, while HCM City saw a year-on-year decrease of more than 50 percent.
The main reason for the declineswas that big property projects in the two cities were sold off in the lastquarter of 2018. A slowdown in the approval of new projects in HCM City,together with tightening credit policies, also contributed.
“Some have said the real estatemarket would decline this year, but I think 2018 and early 2019 have showedfairly stable development," Ha said.
There were 175,000 propertyproducts provided to the market last year, 20 percent more than in the previousyear. The total number of successful transactions was 113,000.
Experts agreed there would not bea downward trend this year because the Government can draw on its experiencefrom past crises.
Le Xuan Nghia, former vicechairman of the National Financial Supervision Committee, said there would be ahuge shift of capital from the stock market to the real estate market, whichwould likely last until 2021 and potentially until 2023. During the period, themarket will show strong development and could be at risk of forming a bubble.
Economist Vo Tri Thanh saidrumours had spread quickly about development plans, causing price inflation insome areas. The market needed more transparency to limit uninformed speculationand reduce risks for home buyers.
Ha said the market would continueto be affected by macroeconomic factors, credit policies and the global growthrate.
Credit scale for the market hasbeen gradually reduced since 2016, especially in the last quarter of 2018. TheState Bank of Vietnam has sought feedback on a draft that would place strictercontrols on credit flowing into the real estate market.
The draft would set a lowermaximum level that banks could use to give long- and medium-term loans, whichwould have a big effect on the property market.
Ha said there were still positivesigns for the market such as high demand in big urban areas.
The tightening of credit policieswould establish a new investment trend by attracting capital for resorts,industrial estates and offices in some localities.-VNS/VNA
Khoi said there were unlikely tobe bubbles in the property market this year because the Government had gainedmore experience in management and supervision.
Vice Chairman of the Vietnam RealEstate Association (VNREA) Nguyen Manh Ha said the property market has beenstagnant in the first months of the year, especially in Hanoi and Ho Chi MinhCity.
Supply on the real estate marketin Hanoi in the period was reduced by 25 percent from the same period lastyear, while HCM City saw a year-on-year decrease of more than 50 percent.
The main reason for the declineswas that big property projects in the two cities were sold off in the lastquarter of 2018. A slowdown in the approval of new projects in HCM City,together with tightening credit policies, also contributed.
“Some have said the real estatemarket would decline this year, but I think 2018 and early 2019 have showedfairly stable development," Ha said.
There were 175,000 propertyproducts provided to the market last year, 20 percent more than in the previousyear. The total number of successful transactions was 113,000.
Experts agreed there would not bea downward trend this year because the Government can draw on its experiencefrom past crises.
Le Xuan Nghia, former vicechairman of the National Financial Supervision Committee, said there would be ahuge shift of capital from the stock market to the real estate market, whichwould likely last until 2021 and potentially until 2023. During the period, themarket will show strong development and could be at risk of forming a bubble.
Economist Vo Tri Thanh saidrumours had spread quickly about development plans, causing price inflation insome areas. The market needed more transparency to limit uninformed speculationand reduce risks for home buyers.
Ha said the market would continueto be affected by macroeconomic factors, credit policies and the global growthrate.
Credit scale for the market hasbeen gradually reduced since 2016, especially in the last quarter of 2018. TheState Bank of Vietnam has sought feedback on a draft that would place strictercontrols on credit flowing into the real estate market.
The draft would set a lowermaximum level that banks could use to give long- and medium-term loans, whichwould have a big effect on the property market.
Ha said there were still positivesigns for the market such as high demand in big urban areas.
The tightening of credit policieswould establish a new investment trend by attracting capital for resorts,industrial estates and offices in some localities.-VNS/VNA
VNA
