The future of real estate market of Vietnam will look like?

15/11/2016   Viewed: 696
General recognition of the growth potential Vietnam real estate market in a few years, many domestic and foreign experts in Real Estate Conference 2016 with the theme "Building the future", said that besides the positive side, market the potential of our country is more at risk.
 
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Association of Real Estate Vietnam, said this year, the real estate market development in our country well, becoming one of the most dynamic economic sectors. The market is witnessing positive changes in quality and the diversity of products in the real estate segment different.

By this time, of total loans in the real estate sector around 420,000 billion, an increase of 100.000 billion compared to last year. In which City continues to lead the nation in capital flows and transactions. The forecast, from 2017, capital flows into real estate will be reduced.

"The structure of the real estate tends phase shift, many investors are still chasing the premium segment while the mid-range segment with real demand does not have the corresponding basket," said Nguyen Tran Nam, Owner Vietnam Real Estate Association president, said.

Sharing the same view on the Le Anh Tuan - Director of Research company Dragon Capital fund manager - identified further in the years to high-end housing segment will be plentiful. Through research, since the beginning of 2016 so far shows that sales prices in this segment with a slight decrease, while the mid-range housing is priced a little bit higher, and there are some areas spike. Especially, if the 3 quarter cumulative of 2016, the land segment, villa is a boom in demand as well as price.

"Forecast 2017, luxury housing price will continue moving sideways. On the overall market will decline slightly while supply continues to rise. The market is flooded with high-level project information to sell sold out, sold out on the day of the open sale, but also depending on each specific project can not be inflated for the whole market, "Tuan said.


More about the market outlook for the coming period, Neil MacGregor, CEO of Savills Vietnam, confirmed that purchasing power in the Vietnam real estate market today in a quarter of Singapore has in the year, thereby no phenomenon of "bubble" real estate in the near future. He said that if the purchasing power falls below 15% of the new concern and immediately to take the warning to the whole market.

Neil also provides forecasts showing the high-end residential real demand is still quite strong in the coming years depends on the growth rate of the whole economy. Besides, the supply of houses under intermediate segment will increase in 2017, but overall supply - demand balance and the market will remain healthy in the coming years.

Also according to the interpretation of the expert, consumers are growing more than the previous cycle and the next cycle will continue to rise, especially in HCM City, while Hanoi more speculative. Jobs for foreigners to own houses are making a difference in the market, especially in the premium segment. Because when they invest in cash generally enjoying 7-8% profitability rate at Vietnam market, while only 1-2% in their countries. However, the market observed trend is appearing more and more investors to pour capital into intermediate housing segment.

"I can confirm that in the next 10 to 15 years of Vietnam real estate market continues to grow as well as current or more. With the abundant young population, the middle class is growing, capital flows in addition to very strong into real estate, transport infrastructure modernization investment has always been widespread, deep economic integration and a stable political background ... make the real estate market for sustainable growth " Mr Marc Townsend - CEO of CBRE Vietnam said.

Talking to us, Nguyen Thi My Phuong - CEO of real estate companies Tien Phuoc said the next 5-10 years the property market will be sustainable development. Public housing segment are also the challenges and opportunities of that segment.

Currently, home buyers were cautious and more careful consideration in their decisions, particularly in terms of legal projects and thinking about living standards have also been changes to the trend in the future, the the project has a beautiful location, synchronous development and multiple utilities, provides high-quality life and was developed by the reputable investor will be the preferred choice of customers.

However, many experts said that in the future also for the exploitation of land for real estate investment in big cities like Hanoi and HCM City will be extremely tough, fierce competition. While the demand for affordable housing in these localities are always at a high level, so not cheap land in the next 3-5 years will be scarce this segment reached "alarming". From there, in Vietnam will form a sales market - mergers (M & A) to keep the exciting land with the emergence of many new capital inflows.

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