HCM CITY — Viet Nam’s real estate market is suffering a severe lack of capital as banks shut off credit flows to the industry.
The credit crunch is not only having a negative affect on property investors though. Banks are also refusing to lend to private individuals who wish to borrow money to buy their own home.
Put in a difficult position, many construction companies have this year deliberately slowed the speed at which their projects are being built. They are prepared to wait until macroeconomic stability returns.
Thursday, June 26, 2008
Sunday, June 22, 2008
Anxiety in Vietnam
As global real-estate firms including those from Thailand put their investment plans for Vietnam on hold, the pain of a market crash is growing more evident in the once-booming economy as buyers scramble for cover and prices dive.
The region's newest "Tiger" economy was roaring just a year ago with its equity market the best performer in the world and economic growth rates rivalling those of China and India, and the envy of neighbours such as Thailand.
But today with soaring oil prices, the once-closed communist country that has since eagerly embraced capitalism has seen inflation reach 25%. Its equity markets are near a two-year low and the property sector has taken a beating as speculators lose their shirts.
The region's newest "Tiger" economy was roaring just a year ago with its equity market the best performer in the world and economic growth rates rivalling those of China and India, and the envy of neighbours such as Thailand.
But today with soaring oil prices, the once-closed communist country that has since eagerly embraced capitalism has seen inflation reach 25%. Its equity markets are near a two-year low and the property sector has taken a beating as speculators lose their shirts.
Wednesday, June 11, 2008
Vietnam’s real estate transparency index goes up
Christopher Fossick, Jones Lang Lasalle’s Southeast Asian Managing Director, said Vietnam’s real estate market has many factors that are less transparent than other countries. However, these indexes have been improved consistently.
The improvement is shown through the amendment of regulations on land, investment formalities, site clearance, etc., which favour foreign investors. Jones Lang Lasalle released the real estate transparency index for the first time in 1999 after surveys of 56 markets in the world.
The improvement is shown through the amendment of regulations on land, investment formalities, site clearance, etc., which favour foreign investors. Jones Lang Lasalle released the real estate transparency index for the first time in 1999 after surveys of 56 markets in the world.
Sunday, June 1, 2008
Silicon Valley investors join in Vietnam's real estate
A half a world away from Silicon Valley's anemic real estate market, agent Cindy Nguyen has little time for sleep while she sniffs out deals in one of the world's hottest property markets.
Last year, the president of San Jose's Lakami Professional Realty returned to Vietnam for the first time in 23 years. She was stunned by what she saw: instant wealth being created by land prices that have tripled, even quadrupled, in recent years.
"I saw the opportunity," said Nguyen, who now commutes regularly between the valley and Vietnam. "I saw the cha-ching, cha-ching. Your return on investment is at least 200 percent in one year."
Last year, the president of San Jose's Lakami Professional Realty returned to Vietnam for the first time in 23 years. She was stunned by what she saw: instant wealth being created by land prices that have tripled, even quadrupled, in recent years.
"I saw the opportunity," said Nguyen, who now commutes regularly between the valley and Vietnam. "I saw the cha-ching, cha-ching. Your return on investment is at least 200 percent in one year."
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