The property market performed impressively in the first quarter of thisyear, with figures showing that recovery returned after a long freeze.
However,a price fever or "market bubble" is not expected to occur due toseveral sources of supply, and because both buyers and propertydevelopers have become more cautious after the 2007-08 bust.
Thereal estate market started warming up in 2014. In the first quarter ofthis year, the recovery of the market was reflected in the rising numberof successful transactions, property start-ups and falling inventory,together with easier credit.
The Construction Ministry'sstatistics showed that the number of transactions in March and in thefirst quarter of this year rose a whopping three times year-on-year.
Theproperty inventory, as of March 20, fell by nearly 58 trillion VND(2.74 billion USD), compared to a year ago, to 70.7 trillion VND (3.34billion USD). Outstanding loans as of the end of January rose by 4.8percent over the end of last year to reach 316.578 trillion VND (14.98billion USD).
The number of property start-ups in the firstquarter of this year also increased by 50 percent year-on-year, showingimproved confidence and expectations for profits, the Agency forBusiness Registration said. The property sector also ranked second inattracting foreign direct investment (FDI), with 202.93 million USDbeing poured into the sector, accounting for 11 percent of the country'stotal FDI.
The Government is speeding up the disbursement ofthe 30-trillion-VND (1.4 billion USD) credit package for the propertymarket. The construction ministry said as of February 25, about 20percent of the package had been disbursed.
Although there wasworry that market fever, as during the 2007-08 period, might occur,given strong capital inflows due to the return of speculators, severalexperts were optimistic about the realty market's recovery and expectedbreakthroughs to occur in the following quarters.
Director of theAn Gia Real Estate Investment and Development Company Nguyen Trung Tinsaid the market was recovering, but was not in a fever. The housingsupply was moving to meet customers' demands and buyers had severalchoices, while developers were seeking stable and long-term growth, hesaid.
According to Director of Hung Thinh Land Nguyen Nam Hien,the scars of the 2007-08 crisis would make both home-buyers and propertyinvestors more cautious in transactions, which would contribute tostabilising the market.
Sharing the same viewpoint, DeputyPresident of the Ho Chi Minh City Real Estate Association Nguyen Van Ducsaid the prices of several projects increased recently, but this wasnot evidence of speculation as those were good projects that fit buyers'demands.
The market would gradually warm up this year, butrecovery did not mean that all projects would have a large number ofsuccessful transactions, experts said, adding apartments with averageprices of about 1 billion VND (47,300 USD) per unit would dominate themarket.
In addition, the regulation that allows foreigners to ownhouses in the country will help boost transactions in the medium andhigh-end segments.-VNA
However,a price fever or "market bubble" is not expected to occur due toseveral sources of supply, and because both buyers and propertydevelopers have become more cautious after the 2007-08 bust.
Thereal estate market started warming up in 2014. In the first quarter ofthis year, the recovery of the market was reflected in the rising numberof successful transactions, property start-ups and falling inventory,together with easier credit.
The Construction Ministry'sstatistics showed that the number of transactions in March and in thefirst quarter of this year rose a whopping three times year-on-year.
Theproperty inventory, as of March 20, fell by nearly 58 trillion VND(2.74 billion USD), compared to a year ago, to 70.7 trillion VND (3.34billion USD). Outstanding loans as of the end of January rose by 4.8percent over the end of last year to reach 316.578 trillion VND (14.98billion USD).
The number of property start-ups in the firstquarter of this year also increased by 50 percent year-on-year, showingimproved confidence and expectations for profits, the Agency forBusiness Registration said. The property sector also ranked second inattracting foreign direct investment (FDI), with 202.93 million USDbeing poured into the sector, accounting for 11 percent of the country'stotal FDI.
The Government is speeding up the disbursement ofthe 30-trillion-VND (1.4 billion USD) credit package for the propertymarket. The construction ministry said as of February 25, about 20percent of the package had been disbursed.
Although there wasworry that market fever, as during the 2007-08 period, might occur,given strong capital inflows due to the return of speculators, severalexperts were optimistic about the realty market's recovery and expectedbreakthroughs to occur in the following quarters.
Director of theAn Gia Real Estate Investment and Development Company Nguyen Trung Tinsaid the market was recovering, but was not in a fever. The housingsupply was moving to meet customers' demands and buyers had severalchoices, while developers were seeking stable and long-term growth, hesaid.
According to Director of Hung Thinh Land Nguyen Nam Hien,the scars of the 2007-08 crisis would make both home-buyers and propertyinvestors more cautious in transactions, which would contribute tostabilising the market.
Sharing the same viewpoint, DeputyPresident of the Ho Chi Minh City Real Estate Association Nguyen Van Ducsaid the prices of several projects increased recently, but this wasnot evidence of speculation as those were good projects that fit buyers'demands.
The market would gradually warm up this year, butrecovery did not mean that all projects would have a large number ofsuccessful transactions, experts said, adding apartments with averageprices of about 1 billion VND (47,300 USD) per unit would dominate themarket.
In addition, the regulation that allows foreigners to ownhouses in the country will help boost transactions in the medium andhigh-end segments.-VNA
