Although local authorities and developers claim the future is bright for real estate development in the city, which is the economic spearhead of the central Vietnam, some industry insiders point out demand remains modest while the market is in danger of being oversupplied.
“With so many projects planned for Danang it is a big question of how to sell,” said Nguyen Quang Ninh, business development director of Indochina Land, the real estate division of Indochina Capital.
Ninh is concerned over developers building a dozen of residential, hotel, office and new townships in Danang at a time when sales of other properties are slow.
Tuesday, April 29, 2008
Friday, April 25, 2008
Vietnam hasn’t removed barriers for foreign investors ?
Sharing this point of view, Kenneth Atkinson, Executive Manager of Grant Thoron Vietnam, said real estate prices in Vietnam are too “tense” now and Vietnam has its own prices.
“To have land for construction, investors have to pay huge sums. There are a handful of local investors who are able to join the market. Most of them are doing business by banking loans. Meanwhile, to achieve its goal of controlling inflation, the Vietnamese government is tightening credit for real estate traders. By chance, this easy prey runs to the pockets of some foreign groups,” Atkinson warned.
“To have land for construction, investors have to pay huge sums. There are a handful of local investors who are able to join the market. Most of them are doing business by banking loans. Meanwhile, to achieve its goal of controlling inflation, the Vietnamese government is tightening credit for real estate traders. By chance, this easy prey runs to the pockets of some foreign groups,” Atkinson warned.
Monday, April 21, 2008
Vietnam’s balance of payments has become a cause for concern
The heated real estate and stock markets have also brought wealth to some people, stimulating the demand for luxury foreign products which is also exerting upward pressure on imports.
The trade deficit may widen as Vietnam’s major importers, especially the US, face an expected economic downturn.
While foreign investment has undeniably helped drive the Vietnamese economy forward, it has its own implications.
The trade deficit may widen as Vietnam’s major importers, especially the US, face an expected economic downturn.
While foreign investment has undeniably helped drive the Vietnamese economy forward, it has its own implications.
Thursday, April 17, 2008
Record US$ 20.3 billion FDI drives Vietnam real estate
Record 2007 Foreign Direct Investment (FDI) worth US$ 20.3 billion is driving Vietnam's real estate industry but experts have urged existing and would be investors and developers to take an holistic approach and support local and regional infrastructure requirements.
The cautionary advice came during keynote presentations at the Cityscape Asia conference, which closed yesterday (Thursday 17 April). The three-day event which took place at the Suntec Singapore International Convention & Exhibition Centre, played host to 6,000 industry professionals and is part of the largest B2B real estate event brand in the world.
During his presentation entitled, ‘Where to Invest and What to Build in Vietnam' Philip Atkinson, Regional Director of Dubai-based Limitless, who broke ground last December on their US$220 Million Halong Star project, located on Vietnam's N.E. coast, called for investors and developers to pursue an all-embracing strategy.
The cautionary advice came during keynote presentations at the Cityscape Asia conference, which closed yesterday (Thursday 17 April). The three-day event which took place at the Suntec Singapore International Convention & Exhibition Centre, played host to 6,000 industry professionals and is part of the largest B2B real estate event brand in the world.
During his presentation entitled, ‘Where to Invest and What to Build in Vietnam' Philip Atkinson, Regional Director of Dubai-based Limitless, who broke ground last December on their US$220 Million Halong Star project, located on Vietnam's N.E. coast, called for investors and developers to pursue an all-embracing strategy.
Monday, April 14, 2008
Navigating the storm: Asia’s real estate
The resilience of Asian economies and the real estate market will be truly tested in 2008. Buoyant domestic consumption is expected to help the region weather a substantial economic slowdown as weaker global demand impacts Asian exports.
Overall, despite the risks inherent in the region, we believe opportunities remain in Asia’s real estate market, mainly in grade-A office space, driven by sound GDP growth (projected at 8% y-o-y) underpinned by sustained private consumption, higher public and private investments; a re-rating of property as an asset class, sustained domestic demand and on-going infrastructure development.
We remain bullish on India and Vietnam, with a cautious view on China, Malaysia and Singapore.
Overall, despite the risks inherent in the region, we believe opportunities remain in Asia’s real estate market, mainly in grade-A office space, driven by sound GDP growth (projected at 8% y-o-y) underpinned by sustained private consumption, higher public and private investments; a re-rating of property as an asset class, sustained domestic demand and on-going infrastructure development.
We remain bullish on India and Vietnam, with a cautious view on China, Malaysia and Singapore.
Friday, April 11, 2008
Efforts to stabilise real estate market
Nhan Dan – The domestic real estate market, especially in Hanoi, Ho Chi Minh City and their neighbouring areas have been very busy and has experienced negative development last year and in the first quarter of 2008.
The objective reason is the increasing demands for accommodation in cities and towns. On average, demands for accommodation in urban areas have increased by 21 million square metre a year.
According to calculations by researchers and economists, office rents in Vietnam is not high compared to the market prices (Vietnam ranks 17th in terms of office rents and 30th in terms of apartment prices in the world) but it is not suitable as far as the economic national development and local people’s incomes are concerned.
The objective reason is the increasing demands for accommodation in cities and towns. On average, demands for accommodation in urban areas have increased by 21 million square metre a year.
According to calculations by researchers and economists, office rents in Vietnam is not high compared to the market prices (Vietnam ranks 17th in terms of office rents and 30th in terms of apartment prices in the world) but it is not suitable as far as the economic national development and local people’s incomes are concerned.
Saturday, April 5, 2008
Property fair to showcase new tourism investment opportunities
Foreign investors will be briefed on the country’s tourism real estate development potential in an exhibition to be held in Ho Chi Minh City from April 17-18 at the New World Hotel.
The exhibition, entitled “Unveil the Hidden Charm,” aims to give foreign investors a broad overview of the country’s tourism landscape ranging from beaches and hotels to investment laws and potential projects.
It will feature seminars and conferences with keynote speeches by Minister of Culture, Sport and Tourism Hoang Tuan Anh and the Vietnam Chamber of Commerce and Industry’s Chairman Vu Tien Loc.
Around 300 projects to build resorts, hotels, golf courses, theme parks, and residential zones will be showcased at the fair.
The exhibition, entitled “Unveil the Hidden Charm,” aims to give foreign investors a broad overview of the country’s tourism landscape ranging from beaches and hotels to investment laws and potential projects.
It will feature seminars and conferences with keynote speeches by Minister of Culture, Sport and Tourism Hoang Tuan Anh and the Vietnam Chamber of Commerce and Industry’s Chairman Vu Tien Loc.
Around 300 projects to build resorts, hotels, golf courses, theme parks, and residential zones will be showcased at the fair.
Tuesday, April 1, 2008
Turning Viet kieu into home buyers
A draft regulation submitted to the Government by the Ministry of Construction would make it easier for Viet kieu (overseas Vietnamese) to own homes in Viet Nam.
While the Housing Law of 2005 paved the way for Vietnamese expatriates to own a house or apartment in Viet Nam, the requirements are demanding and the procedures complicated.
Only 137 Viet kieu have been able to buy property legally here since the restricted qualifications to buy a home in the country took effect two years ago, according to the Ministry of Construction.
While the Housing Law of 2005 paved the way for Vietnamese expatriates to own a house or apartment in Viet Nam, the requirements are demanding and the procedures complicated.
Only 137 Viet kieu have been able to buy property legally here since the restricted qualifications to buy a home in the country took effect two years ago, according to the Ministry of Construction.
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