Still a channel attracting investmentAt a recent conference on strategies to promote the development of real estate at the end of 2017, Dr. Bui Quang Tin, professor at the Banking University of Ho Chi Minh City, said that since July 10, the State Bank of Vietnam (SBV) has lowered the lending ceiling for five priority areas.
Real estate is attracting investment, however, there is a big gap between demands and financial capability of investors.
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“Given that background, it is predicted that between 2018 and 2020, interest rates will decrease. This is a positive move and will greatly support the investors and contractors. At the same time, homebuyers can easily get access to cheaper capital from banks. With the 50% structure, current homebuyers can use bank loans, which is a good sign” – said Mr. Bui Quang Tin.
According to the Investment Director of Savills Vietnam, Mr. Su Ngoc Khuong, from now until the end of 2017, the real estate market will make certain changes. In particular, the biggest change is the involvement of foreign investors in the medium real estate sector. The focus no longer lies in high end segment as before. “This will create fierce competition between domestic and foreign investors, but the ultimate beneficiaries are consumers,” he said.
Evaluating the potential of real estate market in the six remaining months of 2017, economic expert – Dr. Dinh The Hien said, demands for apartment since 2016 have not kept up, while opportunities arise for land plot. However, with positive signals such as: foreign direct investment (FDI) has been steady; high potential for real estate market from supporting policies after the government’s decision in increasing credit growth to 20%; as well as the high rate of customer credit in real estate, are directly increasing the number of transaction in real estate.
“Real estate market in 2017 still attract individual investor, however, there will be a big gap between demands and financial capability of investors. As such, it is difficult to identify the trend, and opportunity will come in each specific project. Moreover, demand for land plot may reduce when investors face difficulties in making benefits” – Mr. Hien said.
Best time to buy house
With regard to statements that demand for real estate is going down, Vice Chairman of HoREA Nguyen Quang Phuc said, this trend is only right for the segment of high income buyers or condotel. As such, the housing segment for middle income buyers and apartments with reasonable price are experienced an increase in demand.
According to Mr. Phuc, the number of new projects confirmed in 2017 is significantly lower than that of in 2016. However, the main reasons are coming from legal procedures. At present, establishing new project is very difficult, so the supply from now on until the end of 2017 will much less compared with previous years. Even with Him Lam, in 2017, it is expected to get 3 new projects going, however, due to legal issues, these projects are still in paper.
“From now on until the end of the year, the real demand is still increasing, and if enterprises can offer products which are suitable for the demands, they will reap the benefits. For me, there has not been a better moment to buy house as now, which is even better than the period of 2015-2016. Because: firstly, the market has many diversified options. Secondly, never before have customers received more benefits as of now. Thirdly, this is the most transparent market since a long time. Fourthly, customers have a lot of option while project owners are in fierce competition and struggling to get benefits, so the price is adjusted to be more affordable” – Mr. Phuc analyzed.
