REAL ESTATE MARKET TO FLOURISH IN 2012
Real estate market is considered a newly emerged one in Vietnam, a country with young population, low cost labour and abundance of tourist attractive locations. Despite difficulties causing by strictened credit regimes and by the real estate market down without visible signal of recovery, many foreign investors still believe in the rise of Vietnamese real estate projects during 2012.

Cat Ba Amatina Project hosted by Vinaconex-ITC is drawing in attetion of many foreign counterparts and investors due to its attractive location and great values

In recent time, many projects, especially the tourist resort real estate projects, were introduced by Vietnamese domestic investors to foreign customers. This brings in the diversity in the investment cooperation between two sides. The attraction in location, price and incentives make many foreign investors to cooperate with Vietnamese businesses in carrying out this type of real estate projects in form of joint ventures. 

Mr. Neil MacGregor - Deputy CEO of Savills Vietnam shared that to develop and trade in real estate in Vietnam are the attractive businesses. Despite global financial crisis, Vietnam is still considered as one of the top investment destination in South East Asia. In a recent voting, Vietnam real estate market had surpassing Indian and Malaysian markets in encouraging special attention of Singaporean investors. According to Savills Vietnam prediction, besides US and Korean investors who already have rich and long investment experience in Vietnam, in the coming time, many new investment funds for real estate market will be established in Vietnam with participation of countries from Asia, even from Moddle East.

Report of Foreign Investment Agency - Ministry of Planning and Investment shows that in the last 11 months, foreign direct investment in real estate in Vietnam reached USD 464.13 million. Especially, in 2011, Association of Foreign Investors in Real Estate (AFIRE) ranked Vietnam the fourth among the newly emerged real estate markets based on its attractive level to foreign investors. Since the beginning of the year, overall the country, there are about 22 transactions in real estate market, mostly from domestic to foreign investors, with the total value of over USD 250 million. Currently, transaction of many other projects are under negotiation. Vietnam still enjoy many advantages to draw in attention of foreign investors, therefore, it is projected that the number of transaction in this fields will still be on increase in the coming years.

Since the beginning of the year, overall the country, there are about 22 transactions in real estate market, mostly from domestic to foreign investors, with the total value of over USD 250 million.

Now, when credit for real estate market in Vietnam is restricted, and there is a lack of development capital, Vietnamese businesses are forced to look for new financial resources in the forms of joint ventures, cooperation; or sale of whole project; or sale of apartment blocks, or sale of retail spaces, or lease of office spaces, etc. This open many opportunities for foreign investors to enter real estate market in Vietnam. The mentioned motions show that the foreign investors' beliefs and expectations on recovery of Vietnamese real estate market in the near future is coming true. And this is a basis for fruitfull cooperation between them.

Demand for real estate at convenient location or tourist potential areas is still great. Among real estate projects, the resort, commercial centers and mid-level apartments will be at the focus of foreign investors in the coming time. The search for capital in the time, when the real estate market is frozen by foreign investment fund, may create a hard competition between domestic investors.

Another signal for real estate market in Vietnam is the increase of remittance during the last months of the year. Remittance coming to Vietnam in this year will be on 5% increase compared to 2010. According to State Bank, it is expected that the remittance into Vietnam in 2011 will reach nearly USD 9 billion, of which 52% poured in real estate products. A separate survey conducted by National Financial Supervisory Commission also proved that the remittance poured in real estate in recent years is on rapid increase. "This is the most salable time of the year. Currently, when the market is frozen, investors faces great difficulties, the remittance would become more significant to revitalize it. Remittance now could be compared to an oxygen tank to help the breath" - stated a representative of a real estate transaction floor located on Nguyen Phong Sac road.

Purchasing power will be recovered!

Mr. Le Vu Tung, high-ranking investment analytist commented that real estate is now still most attrative investment channel in Vietnam.

World Bank predicts that the pouring in of foreign money will still be on increase if global economy could maintain the recovery tendency after the crisis.

With nearly 4 million Vietnamese people currently living, studying or working in 101 countries over the world, of whom there are about 400,000 exported labours, Vietnam is now entered top 10 countries with most remittances received. World Bank also predicts that this year, remittance into Vietnam will reach a record amount after 10 years of consecutive increase. 

Businesses are putting their expectation in the remittance in the end of year. To prepare itself for such "fresh wind" of financial resource, Vinaconex-ITC decided to open the sale of Fantasia resort villas within Cat Ba Amatina Project - a real esstate resort project that meets demand of many investors after receiving remittances from abroad.

Resort villa in Vianconex-ITC's Cat Ba Amatina Project - place to enjoy values of life.

Investors expressed their attention to Fantasia (C2) resort villa of Cat Ba Amatina Project run by  Vinaconex-ITC.

Restructuring of macro economy, reduction of inflation, loosened regime of lending to some real estate projects by commercial banks, and introduction of reasonable policies by the Governent are good signals that, together with the surplus of remittances, promises to bring in the positive factors to real estate market during the end of 2011 and beginning of 2012.

However, in order fot Vietnamese real estate market to gradually recover and strongly develop, beside having good capacity of foreign investors, Vietnamese businesses should be equipped with good idea, good planning and long-term vision to enter the cooperation or joint venture. Only with these conditions, Vietnamese businesses could be successful in utilizing foreign investments and help real estate market to escape current bleak situation and to flourish in 2012 

(Sources:  http://www.baoxaydung.com.vn; http://dothi.net; http://vitc.com.vn)

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