2012
will be a good year for real estate investors despite the difficulties on the
horizon, said real estate service firm CBRE.
In 2011, the real estate market faced many
problems from the income flows being challenged as the capital flows are
restricted and customers’ interests faded.
However, Marc Townsend, Managing Director of
CBRE in Vietnam said that 2012 will see more investment in the real estate
market.
He also explained that sales in the automobile
sector increased in 2011, indicating that customers still have money to spend.
They are just not spending it in realty.
Townsend pointed out that the price of gold is
currently at an all-time high. Once it cools down, people will move towards
investing in the real estate market again. Affordable housing will probably be
the most attractive for investors, he said.
Hanoi now still has 16,000 unsold apartments
and will be offering 22,000 more in 2012. Therefore, the price is expected to
stop rising and remain steady just like the prices in the Ho Chi Minh market.
Concerning the retail sector, Townsend added
that Hanoi's commercial centres are scattered, making these areas more
competitive as supply expected to surge this year.
With an additional 128,000 metres of office
room from the western area, there was a record high of 48 per cent unoccupied
offices, and 27 per cent in all of real estate.
Office prices are expected to keep falling
because of vacancies. This will be a good thing for customers.
Townsend noted that the market will witness
increasing activity in mergers and acquisitions in the next few years.
“For investors who have already invested in
projects prices seem to be just too low. However, many companies or individuals
will be able to find opportunities to gain from the real estate market in the
near future. We believe all this will boost FDI," he said.
Not only the real estate projects are being
completed, Hanoi's infrastructure is also being improved. In the next four
years there are plans for construction projects in transport sectors across the
board: highway overpasses, new bridges and urban railways.
This, it is hoped, will help facilitate easier
and more comfortable travel between urban centres and the countryside.
Dtinews
Business & Investment Opportunities
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