The Hanoi Times - The government should take action to boost the property market which remains in a slump since the early part of this year, analysts, speaking at a meeting in Ho Chi Minh City, said. Dinh The Hien, an Eximbank board member, said property is the most common collateral for bank loans, adding it accounts for 80 percent of outstanding loans. “Without the government’s assistance to boost the market, banks will have to sell off or occupy properties of borrowers who fail to repay debts. “[This] will send supply surging, depressing property prices further.” But Kien Long Bank’s deputy general director Pham Khac Khoan said it takes banks three years to complete the procedures required to dispose of a property. “Properties that are in demand should be sold first,” he said, to prevent prices from plunging. Many delegates at the meeting agreed with a recommendation to set up a fund of VND50-100 trillion (US$2.9-5.8 billion) to help banks … [Read more...] about Real estate firms look to government for support
Selling real estate part time
Hanoi suburban real estate prices climbing daily
The Hanoitimes - Hanoi will have five satellite urban areas, so prices in the suburban areas have risen. Capital is flowing into the real estate sector, while it is still unclear about trends in other investment channels. According to Dat Viet newspaper, apartment prices in new urban areas plus houses alongside Le Van Luong and Khuat Duy Tien roads are steadily increasing. Even small speculators profit Nguyen Vinh Quy purchased 100 square meters of land in Trung Van village in 2001 at one million dong per square meter. The price unexpectedly jumped to 40 million dong per square meter before Tet and has climbed to 45 million dong now. Quy does not intend to sell the land right now, because he believes the price will continue to climb. According to Nguyen Anh Huong, Director of CEN Group, a real estate trading floor in Dong Da District, land prices in Van Canh and Cau Dienare increasing daily, selling now at over 30 million dong per square meter. Apartments in urban areas of Ha … [Read more...] about Hanoi suburban real estate prices climbing daily
Vietnam to ban state companies from investing in real estate, banks
The government has introduced a new rule that will ban state-owned enterprises from investing in real estate, banks and stock markets, a move that is part of its ongoing efforts to restructure the economy. The rule, which will take effect in December, also requires state firms that have already made investments into these sectors to come up with plans for disinvestments. It says there will be exceptions but such cases need to seek special permissions from the government. State-owned companies whose main line of business is real estate are not affected by the new rule. Vietnam has been trying to restructure its troubled state sector over the past few years, after shipping giants Vinashin and Vinalines were caught in a spate of financial problems that threatened not only the health of the sector but also its credibility. Officials have many times asked state enterprises to refrain from investing in areas that are beyond their expertise to avoid unnecessary risks. Earlier this week … [Read more...] about Vietnam to ban state companies from investing in real estate, banks
Confidence returns to real estate
Mr. Stephen Wyatt, Country Head of Jones Lang LaSalle (JLL) Vietnam, shares his thoughts on the real estate market this year and his expectations for 2016. ■ What are your general observations about Vietnam’s real estate market in 2015? 2015 has seen an increase in activity in pretty much all sectors in the real estate market in Vietnam. We have seen rising sentiment and much more interest in real estate over the last year. That is driven by strong economic conditions over the last two years, with interest rates coming down significantly and inflation at around 3 per cent. Residential sales value has increased substantially over the course of the year and, more importantly, in Hanoi, Ho Chi Minh City, and some smaller cities like Da Nang we’ve seen more supply come onto the market. At the moment demand is keeping up with supply so it is a fairly positive picture. In the office sector we have seen differences in the two cities. Ho Chi Minh is short of … [Read more...] about Confidence returns to real estate
Real estate lessons learned, foreign expert
Mr. Stephen Wyatt, Country Head of Jones Lang LaSalle (JLL) Vietnam, discusses the current state of Vietnam's property market. It’s been reported that residential demand remains healthy in Ho Chi Minh City and Hanoi. What is your assessment of Vietnam’s property market and the key growth drivers? The property market saw considerable improvements in 2015 when compared to the previous three or four years. Activity focused around the residential sector, with a considerable amount of development reported in both major cities of Hanoi and Ho Chi Minh City, matched by a significant rise in demand. The office, retail, and industrial sectors also reported improved leasing momentum.The development of the residential market has been more sustainable and healthier than that recorded in the 2007-2008 boom, as developers, investors, and homebuyers have learned the lessons of the past. Supply has increasingly improved over time, in terms of construction/design quality, payment schedules, … [Read more...] about Real estate lessons learned, foreign expert