Current signals of lower interest rates would
only help recover the sentiment of buyers, but the purchase of property at this
time is suitable for real demanders only, investors and speculators should not
join the market, a local newswire reported, citing CBRE Vietnam.
The
recommendation was written in the Q1 report of CBRE Vietnam, one of leading
property consulting firms in Vietnam, about Hanoi real estate market.
Accordingly,
the volume of newly-offered apartments declined 3-4 times against the last
quarter of 2011, around 1,000 units of which 53% were priced at below 21
million dong per square meter. Generally, the Hanoi market still saw the trend
of reducing primary offering price. If the gloomy market is prolonged,
according to CBRE, new supply will be adjusted down compared with the estimated
figure of 20,000 apartments.
Price
of project land in Hanoi kept decreasing, particularly 50% of projects fell
5-10% in prices against Q4 of 2011.
The
segment of trade centres and offices also witnessed a sharp discount of 5-10%
in prices. In addition, under the pressure of high supply, office rental will
likely go down in the forthcoming time.
With
the current saturation of Hanoi property supply, inventory is increasing
rapidly and the commodity volume will be still there whereas the economy has
not shown more positive.
Mr
Richard Leech, Director of CBRE Vietnam said it is right time for real
demanders to buy houses, not for investors and speculators.
Regarding
retail space, a huge supply will be offered to the market by 2013 but this time
the number of retailers remained limited. In the future, big brand names are
expected to enter the market as the economy may be more stable.
He
added that the important things are area of apartments, prices, locations as
well as quality, and payment method matched with real demand.
CBRE
assessed that newly-issued monetary policies of the State Bank of Vietnam will
affect positively to the property market, mainly sentiment of buyers. Lately,
the Central Bank just lowered the deposit rate cap to 12% without concerning
lending rate cap. Factually investors still have to suffer a very high loan
rate.
As the
deposit rate is lowered, depositors will shift their money flow to other
investment channels such as real estate, securities or foreign currencies.
Clearly, investors have another good capital mobilization channel for their
property projects. This depends on financial strength and prestige as well as
the feasibility of each project of each enterprise.
VietBiz24
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