VietNamNet Bridge - Hanoi and HCMC each year between 2018 and 2020 will receive 110,000 new households, adding to the demand for houses and apartments. The real estate demand is still very high The weaker selling power of apartments, condotels and land plots, plus the ‘hibernation’ of speculators all have raised concern about a real estate bubble. VnExpress cited a report as showing that the apartment demand in HCMC decreased sharply by 30 percent with only 7,000 apartments sold in the second quarter, while the inventory level of condotels was once up to 90 percent. As for land, the transactions in the eastern part of HCMC, in districts 2, 9 and Thu Duc in the second half of Q2, were equal to 40 percent of that in April. VnDirect Securities, in its latest report, though admitting the slowdown of the real estate market, still shows optimism. It pointed out three ‘bright parts’ of the real estate market panorama. The apartment demand in HCMC decreased … [Read more...] about Real estate market decelerates, but optimism still exists
Real estate market trends
Quảng Ngãi real estate has huge potential
Viet Nam News HÀ NỘI — The real estate sector in the central province of Quảng Ngãi has strong potential to grow, thanks to its geographic attributes but still-low property prices that appeal to investors. Quảng Ngãi Province is strategically located in the central region and along the East-West economic corridor. It has convenient transport infrastructure and easy links with neighbouring economic zones and neighbouring countries by road, air and waterway systems. Because of this, its industrial, tourism and marine economic sectors are expected to boom in the next few years. At present, the Dung Quất–Quảng Ngãi deep-water port can receive ships of up to 100,000 tonnes, making it an important gateway for importing and exporting goods. In terms of industry, Quảng Ngãi’s Dung Quất economic zone has an area of over 45,000ha. It is one of the five coastal economic zones that have been prioritised by the … [Read more...] about Quảng Ngãi real estate has huge potential
Online real estate brokerage gaining acceptance
VinaCapital’s flagship fund the Vietnam Opportunity Fund (VOF) and Dragon Capital last month announced they spent $21 million acquiring a 25 per cent stake in the Century Land JSC (CenLand), one of Vietnam’s leading real estate brokerages and the leader in the northern region. CenLand has focused on traditional sales channels since 2002, with its popular real estate supermarket system STDA, and has developed its online brokerage platform Nghemoigioi.vn over the last two years. Online channels contributed to the surging number of the company’s transactions in 2017, at 11,555, an increase of 20 per cent against 2016, thanks to real estate support technology. “Online real estate has seen impressive growth of more than 60 per cent over the last three years and is expected to continue growing into the future,” said Ms. Le Hoang Uyen Vy, General Partner at ESP Capital. Fertile ground In line with Vietnam’s burgeoning real estate … [Read more...] about Online real estate brokerage gaining acceptance
Banks tighten real estate loans amid land fever in Vietnam
Many lenders have recently increased interest rates and tightened lending for real estate loans due to concerns about bad debts amid land fever in Vietnam. They have increased mortgage rates by 1-2 percentage points over the past few months. Viecombank and OCB, have set interest rates of around 10.5 percent and 11.5 percent respectively for real estate loans over 12-24-month terms. Meanwhile, other lenders offer rates of 12-12.5 percent. Banks are also offering loans at no more than 70 percent of the property’s value, instead of the previous 80-90 percent. They attribute tightened lending to concerns over market risk as real estate credit risk has jumped from 150 percent to 250 percent in past few months. Currently, State Bank of Vietnam only allows banks to lend 40 percent of short-term mobilization funds for long-term loans, instead of 60 percent in the past. However, real estate loans are usually long-term loans. Banks have also tightened mortgage lending in some of Ho Chi … [Read more...] about Banks tighten real estate loans amid land fever in Vietnam
Real estate bubble fear stirs up controversy
According to Vo Huynh Tuan Kiet, head of residential project marketing at CBRE Vietnam, the Vietnamese real estate market has experienced an unprecedented supply of new projects, with frequent launches and good net absorption.“Along with the market’s traditional segments, new products have been introduced, such as second-home villas, condotels, and officetels. Since 2015, the Vietnamese government has loosened its requirements for foreigners buying and owning properties in Vietnam, which has helped attract more foreign investors to the market,” Kiet said.Nonetheless, many experts and investors have cast doubts upon this rapid recovery, predicting underlying risks. These risks include an oversupply of high-end projects, the return of speculators, and falling market demand.The biggest concern is the risk of another property bubble akin to the one that burst in 2007 and froze the property market until 2013. The market is still paying the price for this previous … [Read more...] about Real estate bubble fear stirs up controversy
Co-living and green: the latest trends to sweep Vietnam’s real estate market
Owning real estate will no longer be a priority for millenials across the world, who will make up half of the global workforce by 2020, according to PriceWaterhouseCooper's latest Millenials at Work report. The latest trends in real estate development show that environmentally-friendly and smart co-living and co-working models promise to change Vietnam's property market in 2018. Co-living Shared accommodation is forecast to be the leading trend, as co-living and co-working spaces are becoming more popular among young people. A recent report on Global Market Perspective by Jones Lang LaSalle Vietnam shows that the main target for shared accommodation is young people, and investments have started pouring in. Many co-working spaces have opened in Hanoi over the past few years. Photo courtesy of Toong co-working space. Just last year, Ascott Limited, an international serviced residence owner-operator, introduced a new co-living brand called … [Read more...] about Co-living and green: the latest trends to sweep Vietnam’s real estate market
Real estate sector short of skilled personnel
Vietnam’s real estate sector lacks experienced and technically-skilled personnel able to implement major projects, according to the latest report on recruitment demand for senior and mid-level managers in Vietnam from Navigos Search, based on recruitment requests it received from clients in the fourth quarter of 2017. Illustrative photo The real estate market in the eastern areas of Ho Chi Minh City is heating up, with the launch of a series of projects creating a need for skilled sales consultants at investors and trading floors. The need for sales consultants and for technical personnel is expected to continue throughout 2018.Developing new products is vital for real estate companies, and they must therefore recruit experienced technical personnel. Vietnam’s human resources market, however, has failed to meet demand, with a lack of senior staff in product development, technical design, and urban planning and development.According to Navigos Search, Vietnamese … [Read more...] about Real estate sector short of skilled personnel
M&A deals in real estate projected to rise next year
Dang Xuan Minh, general director of AVM Vietnam & Vietnam M&A Forum, said the domestic property market was embarking on a second wave of M&A, after 2015, which would be fuelled by the hastened privatization of state-owned enterprises and the increasing interests of foreign investors. The M&A market was expected to touch US$8 billion this year, of which the value of property deals accounted for the largest part, Minh said, adding average value was some $50-60 million per deal. M&A deals in the real estate sector were estimated at some $2 billion this year. M&A deals in the real estate sector were estimated at some $2 billion this year. According to Phan Xuan Can, chairman of property consultancy firm Sohovietnam, the announced M&A deals in the real estate sector were just the tip of the iceberg, and many deals were not disclosed. Can estimated that the value of announced M&A deals in the real estate sector accounted for just 20-30 per cent of … [Read more...] about M&A deals in real estate projected to rise next year
New trends arise in Vietnam’s real estate market
Real estate buyers are changing their habits with a focus on real demands that include smaller and greener houses as well as co-living and co-working spaces. Nguyen Xuan Quang, CEO of real-estate developer Nam Long Investment Joint Stock Company said that five or 10 years ago consumers bought big houses which could accommodate three generations of a family. Real estate buyers prefer smaller and greener houses. He said that they preferred buying a house that could be used as an accommodation and office. Now it has changed. Consumers are mostly young people who focus on choosing a house to live and they care about the living environment. And the house they buy is just for one and two generations. Another difference is the payment method, he said, adding that in the past consumers often paid in gold but now there are more methods such as bank credit. “Vietnam is undergoing urbanization. Furthermore, the population is young so the demand is high and there is huge room to … [Read more...] about New trends arise in Vietnam’s real estate market
MA in real estate sector to increase in 2018
Dang Xuan Minh, general director of AVM Viet Nam & Vietnam M&A Forum, said the domestic property market was embarking on a second wave of M&A, after 2015, which would be fuelled by the hastened privatisation of State-owned enterprises and the increasing interests of foreign investors.The M&A market was expected to touch US$8 billion this year, of which the value of property deals accounted for the largest part, Minh said, adding average value was some $50-60 million per deal.M&A deals in the real estate sector were estimated at some $2 billion this year.According to Phan Xuan Can, chairman of property consultancy firm Sohovietnam, the announced M&A deals in the real estate sector were just the tip of the iceberg, and many deals were not disclosed.Can estimated that the value of M&A deals in the real estate sector which were announced accounted for just 20-30 per cent of the real value.In 2018, many mega deals were expected to take place, mainly in the … [Read more...] about MA in real estate sector to increase in 2018