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Vietnam real estate market faces further challenges ahead

21-11-2013
 

The Ho Chi Minh Construction Department says since the beginning of this year, more than 4,400 properties have been sold to reduce the real estate sector’s inventory level by 30.62%). But as many as 10,053 houses worth over VND17,600 remain in the buffer even though they are offered on 10% - 20% price discount.

High-end apartments and villas are no exception as Phat Dat company in Novaland group has agreed to cut down selling prices by 50% and Vincom has committed to accept 10-year house rents at a fixed price.

Tran Trong Tuan, Director of the HCM City Construction Department, says high inventory level in the local real estate sector have forced investors to reduce housing prices and launch more promotion programmes to increase demand.

Nguyen Van Duc, Director of Dat Lanh real estate company argues that consumers will get some benefits from buying completed houses at a lower price but they many face the risk of buying houses which are still under construction.

There’s growing concern about the Government’s VND30,000-billion aid package to help iron out snags in the local real estate sector. By August 31, 2013, VND105 billion was disbursed for 331 borrowers.

By the end of September 2013, HCM City claimed 51 people had registered for loans worth VND71.2 billion in total, but only 18 got VND5.93 billion in loans.

Such snags in the real estate sector will only discourage investors from getting involved in future housing projects.

http://www.vir.com.vn/news/en/property/real-estate-market-faces-further-challenges-ahead.html

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