Real estate prices in Vietnam might continue to fall this year,
according to Hoa Phat Land director Pham Trung Ha. He was speaking to the media
about the possible impacts of government measures to warm up the market last
week.
To help rescue the economy, the
government recently lowered deposit and lending interest rates by 1 per cent in
a bid to provide enterprises with easier access to finance.
Ha said interest rates for
property investments should be adjusted after the move.
He said he did not expect an
immediate positive reactions from the market, saying that home buyers wanted
low interest rate for medium and long term loans. Previously, a preferential
interest rate had been provided by commercial banks to real estate companies
and home buyers, but mainly for loans of between one to 12 months.
According to Truong Chi Kien,
deputy director of the Him Lam Thu Do Company, focus should be placed on
speeding up clearance of real estate inventories, citing experiences from Thailand
during 1998.
He pointed out that home buyers
in Thailand had to pay interest rate of only 0.5 per cent in the first two
years, which helped create demand.
The government could also provide
support through tax policies to lower repayments, Kien said.
A support package of between
20-40 trillion dong (US$961 million-$1.9 billion) was recently announced by the
government to encourage enterprises and individuals to take part in housing
development.
Nguyen Huu Cuong from Ha Noi Real
Estate Club said that the credit package would operate efficiently only if it
reached its targeted subjects, including investors and home buyers.
Meanwhile, Cuong stressed that
with or without support packages, real estate enterprises themselves should
lower their housing prices and even accept losses to improve the liquidity of
the market.
Experts forecast a boom in
low-price apartments with average prices of below 15 million per square metres
($715) this year and next years.
This will be helped by government
policies to boost social and low-income housing.
Viet Nam News
Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Health care and Life Science with expertise in ASEAN 's area. We are currently changing the platform of www.yourvietnamexpert.com, if any request, please, contact directly Dr Christian SIODMAK, business strategist, owner and CEO of SBC at christian.siodmak@gmail.com. Many thanks.
No comments:
Post a Comment