The property market will continue recovering but experts said that they do not expect breakthroughs in the second half of this year. According to Tran Du Lich, a member of the National Monetary Policy Advisory Council, the market will not see significant developments in the remaining months of the year.
Lich expects the development of housing projects for low-income earners will improve in 2017, driven by the Government’s efforts to develop social housing projects. He said it was necessary to warn about imbalanced development of the property market as there was abundant supply in the high-end segment but a shortage in projects for low-income earners. This must be given special attention, especially if banking credits continue to be poured into the high-end segment.
Vu Van Phan, Deputy Director of the Ministry of Construction’s Housing and Real Estate Market Department, said the ministry would check housing project plans nation-wide to decide whether they should be implemented or not in order to ensure a supply and demand balance, as, in fact, there might be an excess in the supply at the high end over demand.
According to Le Hoang Chau, Chairman of the HCM City Real Estate Association, although the market is on a recovery path, there are potential risks requiring developers to pay greater attention to affordable projects. Home buyers should also carefully check out the projects and developers’ capacity before buying.
The recovery of the property market will moderate in the second half of this year, Duong Thuy Dung, head of CBRE Vietnam’s Research and Consulting Department, said, adding that the market will see new sales but at similar rates to last year.
Sigrid Zialcita, managing director of Cushman & Wakefield, Asia – Pacific, told the recent Property Report Congress Vietnam 2016 in HCM City that the Asia Pacific real estate market will grow the highest globally at 5.2 percent this year, and Vietnam, Indonesia and the Philippines will lead ASEAN’s growth.
Recent improvements in infrastructure have taken Vietnam to the next level of development, but the country must work hard to compete once FTAs and the TPP come into effect. Marc Townsend, managing director of CBRE Vietnam, said resorts are seeing significant development in Nha Trang, Da Nang and Phu Quoc. Townsend warned that Ho Chi Minh City and Hanoi could face a supply glut because of the massive construction in the last two years.
