The domestic real estate market has become warmer as property priceshave dropped sharply to suit the budget of the average buyer.
VuVan Phan, Deputy Head of the Ministry of Construction's Housing and RealEstate Market Management Department, announced at an online meeting onReality and the Prospects of Vietnam's Property Market, held in Hanoi onMay 28, that estate prices had declined 20-30 percent or even 50percent compared with the "hot" period in the market several years ago.
The price decrease in suburban and Ring Road 3 areas was higher than property projects in the city's central districts.
"The market has also seen an increasing number of estate transactions," Phan noted.
Statisticscollected from the Municipal Department of Construction, propertybusinesses and floors revealed that the city has had more than 6,350successful transactions in the year 2013. In the first quarter of lastyear, the number of transactions was 800, and those in the second, thirdand fourth quarters were 1,050, 1,800 and 3,000, respectively.
Asof May 15, disbursement of the 30 trillion VND (1.43 billion USD)package, which aimed at providing credit for social housing projects,was 1.2 trillion VND (57.14 million USD) to 18 projects and 4,825households.
The latest figure from the Construction Ministryrevealed that the disbursement of the package has seen positive changesdue to drastic measures taken to accelerate progress.
Specifically,the total committed loans were 3.7 trillion VND (176.19 million USD) to4,832 households. The ministry has also committed to providing creditto 22 projects, with total capital of 1.92 trillion VND (91.43 millionUSD).
Answering the question of whether the market could bounceback to its "hot" period in 2009, Phan stated that such a situation willnot arise as the market has faced difficulties for a long time togetherwith high inventory.
"These difficulties have brought valuableexperience to investors in finding a suitable segment. In addition,speculators have also learnt lessons about the market."
Tran NgocQuang, Deputy General Secretary of the Vietnam Real Estate Association,agreed, adding that the market has seen positive changes.
Of thetotal, the market segment for medium-sized apartments has the highestnumber of transactions. In addition, property firms have regainedcustomers' trust.
However, Quang pointed out that propertydistribution and service companies have been developed with a lack ofconsistency and professionalism, especially in management.
"Themarket is still suffering a lack of sustainability, which requiresconsistent efforts from all relevant parties though it has seenimprovement," he noted.
Tran Nhu Trung, Deputy General Directorof Tan Hoang Minh Group, added that the market has experienced a periodof adjustment after a hasty and unprepared period.
"The domestic estate market has shown improvements this year as its liquidity rose by 2-3 percent in each quarter," Trung noted.
Thechange was remarkable though it was small as the market has beennaturally adjusted and has not been affected by reactions to trends orevents.
He added that the recovery has not been observed in allsegments, as figures from property floors and consulting firms revealedthat 50 – 80 percent of transactions were on projects that had goodlocations and were under construction or completed. Those projects thatdid not fall under any of these factors have no liquidity.-VNA
VuVan Phan, Deputy Head of the Ministry of Construction's Housing and RealEstate Market Management Department, announced at an online meeting onReality and the Prospects of Vietnam's Property Market, held in Hanoi onMay 28, that estate prices had declined 20-30 percent or even 50percent compared with the "hot" period in the market several years ago.
The price decrease in suburban and Ring Road 3 areas was higher than property projects in the city's central districts.
"The market has also seen an increasing number of estate transactions," Phan noted.
Statisticscollected from the Municipal Department of Construction, propertybusinesses and floors revealed that the city has had more than 6,350successful transactions in the year 2013. In the first quarter of lastyear, the number of transactions was 800, and those in the second, thirdand fourth quarters were 1,050, 1,800 and 3,000, respectively.
Asof May 15, disbursement of the 30 trillion VND (1.43 billion USD)package, which aimed at providing credit for social housing projects,was 1.2 trillion VND (57.14 million USD) to 18 projects and 4,825households.
The latest figure from the Construction Ministryrevealed that the disbursement of the package has seen positive changesdue to drastic measures taken to accelerate progress.
Specifically,the total committed loans were 3.7 trillion VND (176.19 million USD) to4,832 households. The ministry has also committed to providing creditto 22 projects, with total capital of 1.92 trillion VND (91.43 millionUSD).
Answering the question of whether the market could bounceback to its "hot" period in 2009, Phan stated that such a situation willnot arise as the market has faced difficulties for a long time togetherwith high inventory.
"These difficulties have brought valuableexperience to investors in finding a suitable segment. In addition,speculators have also learnt lessons about the market."
Tran NgocQuang, Deputy General Secretary of the Vietnam Real Estate Association,agreed, adding that the market has seen positive changes.
Of thetotal, the market segment for medium-sized apartments has the highestnumber of transactions. In addition, property firms have regainedcustomers' trust.
However, Quang pointed out that propertydistribution and service companies have been developed with a lack ofconsistency and professionalism, especially in management.
"Themarket is still suffering a lack of sustainability, which requiresconsistent efforts from all relevant parties though it has seenimprovement," he noted.
Tran Nhu Trung, Deputy General Directorof Tan Hoang Minh Group, added that the market has experienced a periodof adjustment after a hasty and unprepared period.
"The domestic estate market has shown improvements this year as its liquidity rose by 2-3 percent in each quarter," Trung noted.
Thechange was remarkable though it was small as the market has beennaturally adjusted and has not been affected by reactions to trends orevents.
He added that the recovery has not been observed in allsegments, as figures from property floors and consulting firms revealedthat 50 – 80 percent of transactions were on projects that had goodlocations and were under construction or completed. Those projects thatdid not fall under any of these factors have no liquidity.-VNA
