While in many other countries generation Y (born from 1981 to 1991) is struggling to get a foot on the property ladder without help from parents or grandparents, youth in Vietnam has been inheriting or receiving significant financial support from the older generation, according to experts from Savills. Duong Duc Hien, director of Residential Sales, Savills Hanoi, believes that without this help, home ownership for under 35s would be challenging. “Admittedly there is a gap between young buyers’ income and housing prices in big cities like Hanoi and Ho Chi Minh City. A mid-end two bedroom apartment in Hanoi costs $140,000-200,000, close to developed markets’ average, while the average income in Vietnam is nowhere near,” said Hien. Family support is playing a large part in the financial capability of young home buyers in Vietnam According to the results of the mid-term Population and Housing Survey, the home ownership ratio was 90.8 per cent in 2014, … [Read more...] about Savills says Vietnam youth is easier for housing affordability
Income house price ratio
Probability of a bubble Vo Huynh Tuan Kiet Since its quick recovery in 2014, the Vietnamese real estate market has witnessed an unparalleled supply of new projects being constantly launched and with good net absorption. Along with the market’s traditional segments, new products have been introduced, such as second-home villas, condotels, and officetels. Since 2015, the Vietnamese government loosened its requirements for foreigners to buy and own properties in Vietnam, which helped attract more foreign investors to the market (Figures 1 and 2). Nonetheless, many experts and investors have cast doubts upon this rapid recovery, predicting underlying risks. These risks include an oversupply of high-end projects, the return of speculators, and falling market demand. The biggest concern would be another property bubble akin to the one that shook the market in 2007 and froze the property market until 2013. The market is still paying the cost of this previous bubble. As the … [Read more...] about Signs of another property bubble?
Prices of sand for construction continue increasing in HCM City, following authorities’ orders to strictly monitor sand mining sites for illegal activity. Within one month, sand prices rose three times as there is now a glut of sand on the market, local media have reported. According to Thien Long building materials shop on Le Van Luong Street in District 7, sand is selling for VND695,000 (US$30) per cubic metre, up from VND510,000 on April 30, VND320,000 on April 8, and VND220,000 on March 31. The shop’s owner said “There’s a serious shortage of sand. I used to have seven suppliers, but now I only have two suppliers. The sand comes from Long An and Tien Giang provinces.” According to wholesalers, prices have risen as the construction season has begun and monitoring of illegal sand mining has increased. At another shop on Vo Van Kiet Street in District 6, customers must deposit at least 10 per cent of their order’s value. They cannot receive … [Read more...] about Price of Vietnam sand rises due to limited supply
Hanoi (VNA) - The amendments to Circular No 36 are meant to urge commercial banks to strengthen the risk management of lending activities, rather than tighten the credit sources for the real estate sector, said Pham Huyen Anh, Deputy Chief Inspector of the State Bank of Vietnam He made the statement to reassure real estate insiders amidst fears that the new regulations will have negative impacts on the real estate market which has seen signs of recovery. In a draft document from the central bank circulated for public opinions, the risk index of receivable lending for real estate and securities will be raised from 150 percent (the lowest level) as stipulated in Circular No 36 to 250 percent. The maximum ratio of short- term funds used for medium and long term loans will be reduced from 60 percent to 40 percent. Chairman of the Vietnam Real Estate Association Nguyen Tran Nam said that since Circular No 36 came into effect a year ago, the number of transactions in the housing market … [Read more...] about Bản in : New rules aim to reduce risks in property credit: SBV
Vinalines' port activity surges According to a VIR source, SP-PSA, a joint-venture port of Vinalines and Singapore-based PSA, saw its volume of bulk goods increase 32.7 per cent on-year to 1.54 million tonnes last year. Container throughput reached 67 twenty-foot equivalent units (TEUs). The port located in the Cai Mep-Thi Vai area of the southern province of Ba Ria-Vung Tau made revenue of $3.07 million in the year, up 33.47 per cent on-year. SSIT, a joint venture between Vinalines and US-based Carrix/SSA, handled 3.8 million tonnes of goods during the period, doubling its 2015 volume. The port, also in Cai Mep-Thi Vai, reported revenue of over $5 million, up 85 per cent on-year. 2016 also saw business improvements at Cai Lan International Container Terminal (CICT), located in the northern province of Quang Ninh. This joint venture also has Carrix/SSA as a partner. CICT accommodated over 3.82 million tonnes goods in bulk last year, up 38.9 per cent, while revenue rose 22.6 per … [Read more...] about BUSINESS NEWS 1/3