Some
property experts expect the market to improve early this year though most say
it will continue to face difficulties, at least to the end of the second quarter.
Some property experts expect the market to
improve early this year though most say it will continue to face difficulties,
at least to the end of the second quarter.
The optimists hold that government efforts
will help the market recovery, saying now is the chance for buyers with actual
demands for housing to make good bargains.
After the long Tet holiday, most property
exchanges in Hanoi have resumed operation.
Some have signed their first contracts of the
year for brokerage of apartments, residential land or semi-detached houses.
A representative of the property exchange Phuc
Thinh in Hanoi said his office had successfully brought back two apartment
purchase contracts in Dich Vong and Xa La on the first opening day after Tet.
Since early January, the two offices of this
brokerage firm have won four apartment and land contracts compared to the five
signed in the last quarter of 2011.
Explaining these positive signs, the
representative said some investors deemed it good luck to make transactions at
the beginning of a new year.
Meanwhile,those in need of housing are also
taking advantage of the low season after Tet to look for houses at reasonable
prices.
A popular area in Hanoi is Thanh Tri District,
which is not too far from downtown.
Residents in Duyen Ha Commune, Thanh Tri
District said that after Tet, many people had come to seek residential land and
some successful transactions had been made.
Representatives of many other real estate
trading floors in Hanoi show optimism about the market's short-term outlook.
However, property experts say the market may
not prosper much this year since funding for the sector still depends heavily
on the banking system. If interest rates are still high, the market cannot
thrive.
Furthermore, Nguyen Van Duc, director of Dat
Land Real Estate Co., said many cashstrapped investors would sell their
projects to pay their debts. If the situation worsened this year, many
investors would have to restructure their financing sources.
If the central bank flexibly and selectively
relaxed its credit policy for the property market, and if proposals by
ministries were approved by the government, the market could make some
recovery, but not until the third and fourth quarter of 2012, said a representative
of the Vietnam Real Estate Association. In fact, apart from a few small
transactions, many big projects in Hanoi have not recorded positive changes in
their sales.
A project on Kim Dong Street has attracted
much attention because of the selling price of only 18 million dong per square
metre, coupled with autos as gifts, to improve the sluggish pre-Tet sales.
Some 22,000 apartments of 60 projects will be
launched in Hanoi this year, according to a report by CBRE. This will put more
pressure on property developers as trading volume is expected to stay low and
the percentage of successful deals insignificant.
Besides, they will have to compete with
investors involved in land lot selling projects, who have pulled down their
prices sharply in last year's fourth quarter.
CBRE said the future developments of the
market would depend much on the recovery of the economy.
By the end of 2012, the housing projects whose
prices are 21 million dong per square metre will stay resilient. Besides, the luxury
projects in downtown Hanoi and HCM City will catch the attention of financially
capable investors and families.
Tuoi Tre
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.
No comments:
Post a Comment