Vietnam real estate market gathers more faith again.

April 14, 2014

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In last few months, the signal of improving economy and significant progress in developing infrastructure draw buyers’ confidence in the residential sector and real estate market. According to CBRE Vietnam- Real estate services provider.

 

In the meeting with media yesterday, The US-headquartered firm’s research and consulting vice director Duong Thuy Dung said that the reductions in banking deposit rate in March follows the investors invest in assets more than deposit capital in to the bank with the low lending rates.

Economy have a good signal when GDP growth rate is of 4.96 percent, slightly higher than the rates in the last three years.

“Although strong signals of economy recovery have not been shown, there are certain positive economic indicators, with the Viet Nam Asset Management Company (VAMC) and the VND30 trillion (US$1.43 billion) credit package showing good progress,” Dung said.

VAMC is an organization issuing special bonds and drafted a plan to sell out bad debts with the interesting rate at the market to investers. VAMC planned to buy  100 trillion VND (4.76 billion $) value of bad debts.

There are 3,023 customers disbursed 1.32 trillion VND (63 million $) in the government housing package for social.

Mrs. Dung also cited the growth of residential sector will be improved by the increasing of stock market.

Those positive signals value approximately 2,600 units in HCM City in Q1- issued by VAMC.

The affordable and high-end segments made up the largest proportion with 40.5 and 36.2 per cent of the sales respectively. This suggests that buyers are returning to the market in both the high and lower ends of the market.

In general, all new projects are in the high-end and mid-level segments of construction. The high-end segment accounted for 42.4 per cent of the newly launched units and achieved a good sales rate (80 per cent at Green Valley and over 70 per cent at Icon 56).

“For the first time after many quarters, the market again witnessed popular pre-launch activities,” She said.

“Developers have introduced their projects one or even two months before the official launch. This is a way to market the projects and test the market’s reaction. Q1 2014 witnessed the pre-launch of Galaxy 9, Hung Ngan Garden, and Topaz Garden.”

 Imperia An Phu, very successful project in renting apartment for foreigners.

Secondary market prices have continued to trend down since 2011. The high-end segment recorded the strongest decrease at 2 per cent quarter-on-quarter and 5 per cent year-on-year.

Incentives on new properties such as long payment schedules (up to two years) combined with promotions (gold, car, waiver of management fees) have forced re-sellers to cut prices to stay competitive.

Mrs. Dung expected primary prices to remain stable and secondary ones to further decrease.

The warming signal of real estate market also makes the market of renting and leasing apartments in such project grow up.

The hopeful recovery of economy give the big chance to both project investors and people want to rent apartment in Ho Chi Minh city.
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