A view of the Phu My Hung residential area in District 7, HCM City (Photo: VNA) Hanoi (VNA) – As the State Bank of Vietnam has tightened the control over real estate loans to ensure sustainable development of the market and safety of the banking sector, property transactions have fallen down in both Hanoi and Ho Chi Minh City in the first six months of the year, experts said at a recent meeting in Hanoi. Nearly 13,000 housing products were rolled out in the Hanoi market during January-June, as compared to 8,899 in total number of successful transactions, accounting for 76.05 percent and 68.9 percent of the amount the same time last year, respectively. However, the capital real estate market experienced a good absorption rate of 68.6 percent, particularly housing products were sold fast in the second quarter as the absorption rate reached 84.7 percent. Ho Chi Minh City had the same trend when it saw a fall in both housing supply and transactions in the period. More than … [Read more...] about Real estate transactions fall on tightened property loan control
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FLC announces new real estate brand
A view of Sam Son Beach and Golf Resort developed by FLC Group in the central province of Thanh Hoa. — VNS Photo FLC Group on Wednesday announced the establishment of its real estate brand FLCHomes with four main products including Beach & Golf Resort, Residences, Retail & Office and Green Eco. FLC said it established FLCHomes Real Estate Investment and Development Company in March with key leaders who were from the group’s marketing department with an aim to create an ecosystem of property products. Accordingly, the FLC Beach & Golf Resort would be its key product thanks to its investment ability in building big seaside resort and golf projects nationwide. Its FLC Residences would include modern and synchronous urban areas such as FLC Tropical City Halong. The product was expected to be promoted in big cities in Viet Nam such as Sa Dec, Bac Giang, Thai Binh, Hai Phong, Soc Trang and Kontum this year. FLC Retail & Office would offer office for lease and … [Read more...] about FLC announces new real estate brand
Only 10% of real estate brokers in Vietnam eligible to work
The Hanoitimes - Local experts claimed that well-trained and qualified brokers will help the real estate market transparent. Realtors could be fined for avoiding trade centers Foreign realty brokerage companies target Vietnamese market Statistics from the Vietnam Association of Realtors (VARS) showed that only 10%-12% of roughly 300,000 real estate brokers in Vietnam are eligible to do the work though the number of workers in this sector is on the rise. Illustrative photo The growth rate of real estate brokerage averages 15% annually in the last three years, resulting in the rising number of brokers, the Vietnam News Agency citied VARS. However, there is a fact that brokers sometimes are the cause of land fever in many localities, causing market turmoil. Moreover, spam messages and calls from real estate agents are making problems for the job and toxically affecting truly professional brokers. As the role of brokers is to bring convenience … [Read more...] about Only 10% of real estate brokers in Vietnam eligible to work
Real estate firms issue bonds to raise capital
Real estate firms must seek alternative ways to raise their capital as the State Bank of Vietnam (SBV) has ordered tight control over real estate loans. (Photo: VNA) HCM City (VNA) – As the State Bank of Vietnam (SBV) has ordered tight control over real estate loans by credit institutions, property firms and developers have to seek alternative ways to raise their capital, and many of them have decided to issue bonds to fund their business. The central bank increased the risk weighting of real estate loans from 200 percent to 250 percent in 2019, which is a significant disincentive for banks to make loans to the property sector since their minimum capital requirement is a ratio of their risk-weighted assets under the Basel norms. Meanwhile, the SBV’s regulation on reducing the maximum quantum of short-term deposits that can be used for medium- and long-term loans from 45 percent to 40 percent will reduce banks’ liquidity. To that end, realty enterprises need … [Read more...] about Real estate firms issue bonds to raise capital
The steady state of Vietnam’s 2019 real estate
(VEN) - The supply of some real estate products in Vietnam has decreased, while their inventory is still relatively high, leading to forecasts that the market will not experience any major changes this year. Real estate supply is expected to decline in the coming time Decreasing supply A recent report by the Vietnam Association of Real Estate Brokers (VAREB) shows that the quantity of apartments and villas for sale in Hanoi and Ho Chi Minh City is equal to about 70 percent of that in the fourth quarter of 2018. In Ho Chi Minh City, the number of construction licenses has decreased 16 percent, while 150 real estate projects have been halted for inspection. Chair of the Vietnam Real Estate Association (VNREA) Nguyen Tran Nam said this declining trend is expected to persist. A representative of the Vietnam Association of Realtors (VARs) said the real estate market in the first quarter showed sign of slowing down, especially the housing supply at two major markets of Ho … [Read more...] about The steady state of Vietnam’s 2019 real estate