The property market of Vietnam is believed to have a good prospect in the medium and long terms (Photo: VNA)Hanoi (VNA) – An insider has predicted a good outlookfor the property market in the medium and long terms despite signs of declinein recent months.
At a forum in Hanoi on May 16, Chairman of theVietnam National Real Estate Association (VNREA) Nguyen Tran Nam said realestate companies listed in the stock market have recorded some drops in theirrevenue and profit.
Though the Government has been making efforts tocreate an open and healthy business environment, there haven’t been any strongimprovements, according to enterprises.
He cited recent data as showing that in Ho ChiMinh City, the number of construction licenses have decreased 16 percent, and150 projects have been halted to be inspected.
Meanwhile, according to a report of the Vietnam Association of Realtors,apartments and villas offered for sale in Hanoi and HCM City have dropped,equivalent to about 70 percent of the supply in the fourth quarter of 2018.
However, Nam noted, the strongest point of theVietnamese property market is great demand and liquidity.
Statistics of the United Nations pointed out that people with average incomefrom 1,000 to 10,000 USD usually buy houses, and Vietnam is a country with percapita income in that range.
He expressed his belief that the market will bevery good in the medium and long terms, adding that about 1 million people movefrom rural to urban areas each year, and Vietnamese people often save money tobuy houses.
At the event, Can Van Luc, senior economist atthe Bank for Investment and Development of Vietnam (BIDV), said there is now aninflux of capital into real estate and a surge in the number of propertybusinesses.
Foreign direct investment in the property sectorreached some 6.5 billion USD in 2018. With this trend, industrial andcommercial real estate and social housing will continue expanding in the timeahead, he said.
Echoing the view, Deputy Director of the CentralInstitute for Economic Management Tran Kim Chung said the property market isnot too worrying, and industrial real estate and housing, particularly high-endhousing and affordable housing for rent, still have room to develop.
Some other experts said many businesses areshifting their focus to tourism and industrial real estate and offices forlease, which will be in demand in the coming time when more foreign firms willcome to invest in Vietnam to seek benefits from new-generation free tradeagreements.-VNA
VNA
