Viet Nam’s real estate market, as forecast by both domestic and foreign investors, is in its "golden age" because it still has lots of potential.
According to Dang Hong Anh, General Director of the Sacombank Real Estate Joint Stock Co. (Sacomreal), the real estate market has recovered after being frozen for a long time.
The heat of the market has been attributed to increasing housing demand in big cities, Anh said. In Ho Chi Minh City, 22,000 out of 109,000 public servants need housing. Housing demand in Ha Noi is set to rise to 26,000 apartments in 2010, a figure nearly three times higher than supply.
In addition, the process of carrying out commitments when entering the World Trade Organisation (WTO) has created more opportunities for foreign investors.
The high demand on housing of overseas Vietnamese who want to settle down and set up business in Viet Nam is also a factor heating up the market, he added.
Furthermore, fluctuation in the securities market has contributed to the warm-up of the property market. Many stock investors have shifted their money into real estate.
The Sacomreal general director said the recovery of the property market is juxtaposed to the economic situation in Viet Nam. The level of buoyancy will depend on the State’s policies of demand and supply adjustments.
Regarding housing and departments for low-income people, he said that real estate businesses should consider it a social matter rather than the demand-supply relationship between sellers and buyers.
However, real estate companies cannot deal with the matter without support from the state, he said, adding that they also need time to prepare finances, human resources and management for their investment.
Source: VNA
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