VietNamNet
Bridge – No one can foretell when the
property market will defrost. However, analysts have pointed out that the sharp
falls of the bank loan interest rates, plus the lessened attractiveness of
other investment channels would drive the cash flow to the real estate market.
Deputy
Minister of Construction Nguyen Tran Nam also said at the meeting with Eurocham
on June 16 in HCM City, that a huge capital has been kept among people,
estimated to reach 25-40 billion dollars, and that it is very likely that the
capital would flow into the real estate market, when the opportunities in other
investment channels have been narrowed.
It’ll take time to
defrost real estate market
Nam
believes that the deposit interest rate reduction to 9 percent per annum has
made deposits unattractive to the people who have idle money. Meanwhile,
investors also keep hesitant to inject money in gold and foreign currencies,
since the two items have been put under the strict control by the State, and
they are not considered the kinds of goods or payment instruments.
Meanwhile,
the dong/dollar exchange rate is believed to be stabilized thanks to the big
foreign currency reserves.
Investors
also cannot see big opportunities with securities investment deals, because the
stock market remains gloomy and listed companies, like many other businesses,
are facing big problems in the economic downturn.
With
the analysis, Nam has predicted that the cash flow would be driven into the
real estate market. However, it would take time to see the real estate market
warm up, because it would need some more time to restore investors’ confidence
on the investment opportunities.
“The
real estate market would thaw, but it would not be defrosted as quickly as the
ice in your glass of water. It would warm up gradually according to the
national economy recover,” Nam said when answering a question raised by a
businessman about the state’s policies to revive the market.
According
to Nam, the government has been aware of the difficulties of the property
market and it would be determined to settle the existing problems to
re-activate the market, which is considered an important part of the national
economy. Once the market meets difficulties, this would lead to the banking
sector losing its liquidity and to the increase of the bad debts.
Nevertheless,
the government would have to be cautious with its steps in the process to
revive the property market. The government can only loosen the monetary
policies in a cautious manner, because it needs to keep vigilant over the
possible returning of the high inflation.
In
the immediate time, the government has made necessary interventions to help
warm up the real estate market. For example, the housing development projects
have been weeded out from the list of the sectors to which commercial banks are
not encouraged to provide loans. As such, real estate developers now can access
official credit sources at lower interest rates.
Nam
believes that the real estate market would begin warming up in the last months
of 2012 and regain its recovery by 2013.
Real estate
developers cherish hope
Though
real estate developers understand that they should not expect the market
recovery overnight, they have been trying all the ways they can to boost sales.
Thu
Duc House, for example, is offering apartments and landed properties in
districts 9 and Thu Duc with flexible sale policies which offer a lot of
preferences.
About
100 apartments at TDH-Truong Tho apartment block and TDH-Phuoc Binh have been
put on sale. The apartments have been completed and they are ready to be
delivered to buyers immediately. The price of 14.9 million dong per square
meter and 950 million dong an apartment prove to be affordable to people.
Meanwhile,
Hung Viet and South Korean KRDF03 (HVK) have begun seeking buyers for the first
apartments of The Eastern project in district 9 in HCM City.
Source:
TBKTSG
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