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
Post gazette real estate
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
Can Tho caught up in the hype storm of real estate price
Skyrocketing prices These days, social networks are littered with posts promoting real estate, from urban land to farmland. Real estate agents constantly try to close sales land projects or townhouses, sprinkling in bits of info about how prices are predicted to rise rapidly to talk customers into purchasing the assets. In Ninh Kieu District, noteworthy projects that are being actively advertised include Hung Loi Villas, with an average price of VND29 million per square meter (US$1,246); or Eco Villas Con Khuong in Cai Khe Ward at about VND19 – 25 million per square meter ($816 - $1,073) depending on locations. In the urban zones of An Khanh and An Binh wards, land prices range from VND2 - 4 billion ($85.9 -171.9) per lot. In the Southern part of town, prices also skyrocketed to VND1.5 - 3 billion ($64.3 - $128.7) per lot. A street-front land lot in this area would cost over VND2.5 billion ($107.3), not including house-building expenses. This amount is a real challenge for … [Read more...] about Can Tho caught up in the hype storm of real estate price
Limited supply hits real estate market
Land planning, project approval, site clearance compensation, and auctions for land use rights have been tightened, thus giving a threat to the supply. According to Can Van Luc, chief economist at the Bank for Investment and Development of Vietnam (BIDV), capital available for the real estate market remains at a low level, primarily based on bank credit. Only 20 real estate companies have so far been listed on stock exchanges. Commercial loans of local property developers account for 60 per cent of the total capital for their investment and business, while the rate of firms in the US and Europe stands at only 35 per cent. A large number of cash flows have been poured into the real estate sector. The total registered capital of property firms is close to VND150 trillion (US$6.45 billion). Luc has high hopes on increases in industrial and commercial properties, as well as social housing projects in the future. Bank credit for the real estate sector surged by around 6 per … [Read more...] about Limited supply hits real estate market
Real estate at the heart of economy
American investor and CEO of Indochina Capital, Peter Ryder How have you assessed the contribution of the private economic sector, especially foreign direct investment (FDI), to Vietnam’s real estate market? An interesting trend in Vietnam, which I detect, is that the real estate development has long been dominated by the private sector. This is unlike many other industries in which the government still has very large involvement. If you look at the history of real estate development over the past 25 years, we can see that Vietnam has really opened up in the post-doi moi era. In the immediate wake of this, major developers were foreign investors who typically set up joint ventures with domestic authorities. During this time, Indochina Capital began two joint ventures, one with Danang Tourism to develop the Furama Resort, and another with the Vietnam Fatherland Front and Hongkong Land to develop an office building at 63 Ly Thai To in Hanoi. In the last decade, the market … [Read more...] about Real estate at the heart of economy