Investment
Realty market certainly to grow strongly in 2017
The property market would see strong competition in product quality, but at reasonable prices in 2017, property expert Dang Hung Vo said at the annual conference entitled "Vietnam Real Estate Market: Overview and Forecast", organised by the property website batdongsan.com.vn last week.
According to the report unveiled at the recent annual conference entitled "Vietnam Real Estate Market: Overview and Forecast", the high-end segment has recorded a higher demand supply.
About 1.3 billion USD from FDI was poured into real estate sector, accounting for 10% of total investment in Vietnam in the past 11 months of 2016.
During the conference, experts said the market would see strong competition in product quality, but at reasonable prices.
After witnessing a stable performance in 2016, the property market is poised for strong growth in 2017, driven by the improved economic situation, and developers more focused on market demands.
A report from batdongsan.com.vn, which has 50 million page views per month and nearly 2 million regular users, showed that the apartment segment received remarkable attention from the market, making up one-fourth of the total searches, said Nguyen Quoc Anh, Deputy General Director of the Dai Viet Group, the website’s owner.
According to expert Can Van Luc, the Government should have solutions to develop the capital market for the property market, which was still heavily dependent on bank loans.
The expert said the establishment and operation of the real estate investment trust (REIT) should be promoted, along with the security of property projects.
He also urged the creation of a property market information centre to improve market transparency.
Property expert Dang Hung Vo said that an over-heated market would not likely happen in the overall market or some segments in 2017, but demand would certainly be higher than in 2016.
Still, attention should be paid in the second half of this year, as there would be factors that could contribute to the formation of a market bubble, such as significant price increases and speculation.
Experts also said at the conference that resort, hospitality and housing properties would highlight the market next year, as demand for these two segments remains high.
Developers are expected to move towards the market demand in 2017, with a focus on offering housing of good quality, but at reasonable prices, expert Vo said.
He noted that the market was witnessing an alarming imbalance between supply and demand in the apartment segment.
In the high-end segment, demand accounted for just 20 percent of the market’s demand, while supply accounted for up to 80 percent of the market’s supply, and vice versa for the affordable housing segment, according to Vo.
He said the affordable housing supply would increase next year, as several property developers recently announced expansion into this segment, including Vingroup and Muong Thanh.
However, supply would still be below demand next year, he added.
About 1.3 billion USD from FDI was poured into real estate sector, accounting for 10% of total investment in Vietnam in the past 11 months of 2016.
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After witnessing a stable performance in 2016, the property market is poised for strong growth in 2017, driven by the improved economic situation, and developers more focused on market demands.
A report from batdongsan.com.vn, which has 50 million page views per month and nearly 2 million regular users, showed that the apartment segment received remarkable attention from the market, making up one-fourth of the total searches, said Nguyen Quoc Anh, Deputy General Director of the Dai Viet Group, the website’s owner.
Deputy General Director of the Dai Viet Group Nguyen Quoc Anh said apartment segment received remarkable attention from the market.
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The expert said the establishment and operation of the real estate investment trust (REIT) should be promoted, along with the security of property projects.
He also urged the creation of a property market information centre to improve market transparency.
Property expert Dang Hung Vo said that an over-heated market would not likely happen in the overall market or some segments in 2017, but demand would certainly be higher than in 2016.
Still, attention should be paid in the second half of this year, as there would be factors that could contribute to the formation of a market bubble, such as significant price increases and speculation.
Experts also said at the conference that resort, hospitality and housing properties would highlight the market next year, as demand for these two segments remains high.
Developers are expected to move towards the market demand in 2017, with a focus on offering housing of good quality, but at reasonable prices, expert Vo said.
He noted that the market was witnessing an alarming imbalance between supply and demand in the apartment segment.
In the high-end segment, demand accounted for just 20 percent of the market’s demand, while supply accounted for up to 80 percent of the market’s supply, and vice versa for the affordable housing segment, according to Vo.
He said the affordable housing supply would increase next year, as several property developers recently announced expansion into this segment, including Vingroup and Muong Thanh.
However, supply would still be below demand next year, he added.
