Apartment complexes on Ton That Thuyet Street, Ha Noi. — VNS Photo Thai Ha Latest updates from the Ministry of Construction showed that real estate inventories were on a declining trend but remained relatively huge. As of September 20, the real estate stockpiles were estimated to be worth more than VND26 trillion (US$1.15 billion), dropping by nearly VND4.3 trillion over the end of 2016. The ministry said in a January – September market report in preparation for the upcoming National Assembly meeting, that the decrease in property inventories had slowed down significantly in recent months because most projects in the stockpiles were located far from downtown areas with underdeveloped infrastructure. Thus, it was difficult to promote the sales of these projects. There was a redundancy in the high-end housing segment, while there was a severe shortage in affordable homes, reflecting an imbalance in the … [Read more...] about Real estate inventory inches down
Real estate inventories drop slightlyVan Ly HANOI – The total value of real estate inventories nationwide has dropped by VND3.68 trillion (US$162 million), or around 12%, against late last year to VND27.34 trillion (US$1.2 billion), shows data of the Vietnam Real Estate Association (VNREA). The decline of real estate inventories has slowed recently, which relates mainly to those projects being far from city or town centers and having inadequate infrastructure, according to the Housing and Real Estate Market Management Agency under the Construction Ministry. Residential land lots in stock total more than 3.3 million square meters worth about VND13 trillion, followed by low-rise residential blocks with over 3,400 units worth nearly VND7.3 trillion. There are 3,200 unsold apartment units worth VND4.6 trillion. More than 648,000 square meters of commercial residential land which costs a total of VND2.48 trillion remains unsold. Hanoi and HCMC account for about … [Read more...] about Real estate inventories drop slightly
VietNamNet Bridge - There is no reliable answer to the question about whether the real estate market has warmed up, because different information sources show different situations. Thoi Bao Kinh Te Viet Nam has discovered interesting things in the reports the Ministry of Interior Affairs (MIA) presented before the National Assembly and the answers of Trinh Dinh Dung, Minister of Construction, to the inquiries.MIA’s report on the implementation of the National Assembly’s resolution on the enlargement of Hanoi showed many problems existing, including the frozen real estate market, highlighting that this was a big problem of the capital city’s economy after seven years of expansion. Meanwhile Minister Dung on November 19, answering the National Assembly’s questions, said the real estate market has ‘improved’ and ‘recovered strongly’, thus making great contribution to the economic development and the settlement of social issues. Huynh Van … [Read more...] about Is the real estate market warming up?
The Hanoitimes - Leading economists say it is essential to have a separate financial system that is not run by State-owned banks to insure lending is based on merit, reduce the risk of a banking liquidity crisis and to better manage the country’s foreign exchange position. Deputy Minister of Construction Nguyen Tran Nam emphasizes that unstable capital sources have caused major hurdles for the real estate market. Deputy Minister Nam says many countries have their own separate financial system for the real estate sector to best accommodate long-term investment in real estate projects adding that, there is not such channel in Vietnam. Most Vietnamese businesses are of small and medium sizes, with total charter capital of less than VND1,000 billion, which is not sufficient to get involved in a high-rise building (estimated to cost at least VND1,500 billion), Nam elaborates. Obviously, he says, many real estate businesses find it difficult to access credit loans. Moreover, these … [Read more...] about Deputy Minister: need to separate financial system for the real estate sector – Real estate – Economy
VietNamNet Bridge - Vingroup, Novaland, FLC and SunGroup are expected to continue to lead the property market in 2017. They are all big players in the real estate market, but each of them follows its own way. The firm reported a sharp increase of 80 percent in revenue from real estate transfers in 2016, at VND38 trillion. Nam Ha Noi Urban Development, a subsidiary of Vingroup, in the fourth quarter of 2016, delivered high-end apartments at Park Hill project in Times City urban area and earned VND9 trillion. Not only providing high-end apartments, luxury villas and expensive resorts, Vingroup has recently announced it will also provide apartments at reasonable costs when kicking off the VinCity project. The apartments of the projects would be priced from VND700 million only.Novaland with focus on mid- and high-end apartments Novaland is the second-largest real estate enterprise in the stock market in terms of capitalization value. In the last two years, Novaland has wrapped up a … [Read more...] about Who will lead the real estate market in 2017?
Market bounces back The real estate market in Hanoi has begun to gain momentum since May with areas of land in Ha Dong, My Dinh, An Khanh and Thang Long seeing a sharp increase in price. For example, price of land for the An Khanh-An Thuong project has increased from VND15-17 million/m2 to VND18.5 million/m2. The President of Vinaland’s Executive Board, Nguyen Minh Hoang said that since earlier this year, house and land prices in HCM City have soared by 20-30 percent. For areas with a good infrastructure like Nam Sai Gon, land prices have jumped by 40-50 percent. Meanwhile, the land price for major projects like Him Lam and Phu My has increased from VND30 million/m2 to VND50 million/m2 and from VND12 million to VND19 million/m2, respectively. Supplies of real estate are not high and transactions are mainly buying and selling activities secondary investors and customers with real needs, therefore, the discrepancy between land prices is quite high. For instance, the original price … [Read more...] about Who benefits after the real estate market bounces back?
VietNamNet Bridge - While some experts believe the real estate market will be active in 2017, others think the market will cool down and encounter difficulties. First, stable economic development. Economists predicted that the national economy will perform better than in 2015 and 2016 with a higher growth rate and better exports. Second, the indexes related to the real estate market are good. Bad debts have been settled and banks have increased lending to real estate projects, while idle capital in the public is flowing to the real estate market. Third, the State has applied many policies to organize a transparent market. “The transparent state management will help businesses and investors feel secure,” Chung said. Tran Ngoc Quang, secretary general of the Vietnam Real Estate Association (VnREA), also thinks the high economic development, the deeper global integration will bring benefits to all the business fields in the national economy, including the real estate sector. … [Read more...] about How will the real estate market perform in 2017?
BIDV to get involved in real estate projects (18-04-2006) HA NOI — The Bank for Investment and Development of Viet Nam (BIDV) plans to offer new banking services for real estate projects in the third quarter this year after receiving approval from several large construction corporations. Under the new service, landowners and investors developing real estate projects could enlist the help of BIDV in the capacity of financial manager, making the bank a key factor in housing development projects. Investor confidence would be improved while the development of projects would be more effective, it said. BIDV general director Nguyen Bac Ha said the bank could also provide capital for construction projects, receive authorisation to manage capital, and provide loans for people hoping to buy residences in housing projects. The bank would thus be supporting investors with secure capital sources and helping prospective homebuyers, he said. Nguyen Quoc Hiep, general director of Contrexim … [Read more...] about BIDV to get involved in real estate projects
Proper policies needed to deal with exploding real estate market: experts (16-02-2008) HA NOI — A property boom, much like at the end of last year, has been predicted in the coming months, and experts are saying new policies must be implemented to deal with increasing prices and demand for new projects and apartments. "The market will continue to see a shortage of supply as well as price hikes," said Tran Anh Dung, director of the Ba Dinh General and Trading Service Ltd Co. The market was unlikely to be as bustling as last year due to coming taxes on land speculation and the Personal Income Tax Law, stipulating real estate revenues and transactions must be taxed, said Dung. He added that property-related regulations, including compulsory professional certificates for brokers and transaction requirements for real estate exchanges would be strictly applied this year. "While demand is getting higher, supply is limited by some [Government] policies," said Lam Van Chuc, board chairman … [Read more...] about Proper policies needed to deal with exploding real estate market: experts
Overseas Vietnamese businessman Alan Phan calls on the government not to bail out the property sector, instead to let land prices free-fall in order to help poor people get a house. Phan has published a story on his official blog in reply to 16 questions from a 1,000-strong Hanoi Real Estate Agency (HREA) on his opinions about the coming real estate bailout plans. The 3,000-word story, " a letter to 1 ,000 colleagues " [Phan used to be a realty investor-developer in the US back in the 1980s], shows his "expectation that local realty investors should sacrifice their personal interests to share with the less fortunate people so that they can have a chance to buy a house." … [Read more...] about High-profile businessman advises against realty bailout