Real estate market will be exciting
According to Tran Ngoc Chinh - Chairman of the Urban Planning Development, Vietnam has the urbanization rate of 31% to 756 cities, average per month has an extra urban development and construction each year 70 million m2 of housing is increased.
With the urbanization rate, he expected home prices in the inner city will increase or decrease at a slower rate than the coastal region and it depends heavily on planning and progress of the project investment in infrastructure development. In particular, Karachi - where immigration will be the most powerful nation to create a vibrant real estate market by high liquidity and large.
On the other hand, Nguyen Manh Ha - Director of Administration and the real estate market (Ministry of Construction), said that the real estate market Vietnam is still on the rebound. This is shown most clearly in 2010 with the focal point is the type of low-income housing system and policy documents issued promptly. These moves helped the market supply is supplemented with clearly defined needs of each segment, to increase transparency for the market and create a legal framework for investor safety.
Mr Ha also said that property prices in Vietnam are still at high levels in comparison with average income of people and goods back structural imbalances seriously. In fact, the percentage of area condominium with only 1.23% of the total area of housing nationwide. In big cities like Ho Chi Minh City, this rate is still very small, only reaching 16% and 14% in Hanoi.
Also witnessed several attacks "land fever"
"Getting circuit" real estate market, Prof. Dr. Dang Hung Vo - Former Deputy Minister of Natural Resources immediately to say the disease is the lack of funds. This market is falling into the same situation took place in late 2008, early 2009. To find the capital for the real estate market, according to Vo, the first is the renewal of the law to allow real estate mortgage in the foreign commercial banks. However, the mortgage is easier but more important is to solve the real estate mortgage loan how when people can not afford to repay the loan.
"Whether sooner or later, we still have to do is let mortgage real estate in the foreign commercial banks. Especially when we became an official member of WTO, which aimed to create a stronger capital market real estate, and meet the expanding demand for the stock market in our country or to expand sales mechanism, merged firms to large enterprises abroad "- Mr. Vo said.
System of real estate capital Hanoi depends largely on credit and loans in the market, as banks tighten property immediately affected. However, Mr Ha said that due to delay certain real estate will not be affected immediately. If last year, banks do not loosen your hands, then right into 2012, Hanoi real estate can be affected.
Before this situation, Vo said that the year will still have the fever real estate is local, not rooted in supply-demand relationship that may be due to planning information or investors trying to drive prices.
However, experts warned about the lack of stable and unstable market. Former Minister of Trade Truong Dinh Tuyen said the world, the cause of every crisis comes from instability of the real estate market. Thus, together with the tightening of capital markets for this sector, also need to consider to avoid spreading investment, not the needs and especially to control the progress of developing new effective.
(According DDDN)
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