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Vietnam: promising future

Almost 50 new development projects are expected to be announced in Vietnam at the end of this year and the beginning of 2010 - most are centered on the capital Ho Chi Minh City and it is a sign that the country is poised to be a real force in the emerging real estate sector in the next year, according to analysts...

The latest information from property consultants CB Richard Ellis is that at least 44 projects will be announced in the next few weeks that will supply over 22,500 apartment units.

The last quarter of 2009 is also predicted to be the best for the Vietnamese property market which has been relatively stable throughout the last 12 months.

A bullish stock market and progress in infrastructural development is encouraging real estate investors to return to the market despite some concerns about changes in tax policies, said CBRE executive director Richard Leech.

Although prices may fluctuate throughout 2010 overall the outlook is positive and some are even predicting a mini property boom but this is more likely towards the end of the year.

‘I don’t think we will see a boom in the near future as investors are still wary of a recovery. Also the price of property is still beyond the income of most people,’ said Pham Van Hai, director of ACB Real Estate.

Developers would like to see more stimulus packages from the government that directly affects the property market.

‘The extended short term interest rate subsidy programme will not have a big impact on the real estate market,’ said Luong Tri Thin, general director of Dat Xanh Real Estate.

Banks are still limiting real estate loans and a healthy stock market gives investors another option.

Also unclear regulations on personal income taxes due on real estate have confused a lot of potential investors.

But analysts at CBRE are confident that the market will improve in the second half of 2010 and early 2011, when both Vietnam’s and the world’s economies show stable recovery signs and tax policies become clearer.

Others agree. According to Van Hai, the market for reasonably priced apartments will be stable thanks to high demand.

And according to Savills Vietnam there is a shortage in supply in all market segments in Hanoi, while the supply is more profuse in HCM City.

Source: www.propertywire.com

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