Recent reports of land fevers have raised concerns over the possibility of a real estate bubble in Vietnam similar to the historic one in 2008. Eight out of 10 signs of a real estate bubble have been identified in the Vietnamese market, said Tran Kim Chung, deputy director of the Central Institute for Economic Management (CIEM) at a conference last week. They are increased numbers of transactions, new constructions, areas under development, participants in the market; rising prices; and presence of projects that are bigger in terms of scale, value and funding. The real estate market in Vietnam has seen a rush for land from late last year in Ho Chi Minh City and neighboring areas. Land in Dong Nai Province, northeast of Ho Chi Minh City, costs from VND72-90 million per square meter ($3,150-$3,980), which is nearly equal to some urban areas in HCMC. Local residents and real estate agents said the price doubled last year's, and has climbed a further 30-50 percent so far this … [Read more...] about Experts fear potential real estate bubble in Vietnam
Potential real estate
Hanoi Times - While local banks are turning off the 'real estate credit valve' as requested by the State Bank of Vietnam, foreign banks are trying to increase credit. Recently, several domestic banks have resumed real estate loaning, but they only give loans in dribs and drabs. only loyal clients can access bank loans, while individual clients seem to have no way to get bank loans. Dang Van Thanh, Chairman of Sacombank, said that it would be very risky to use short term capital for long term loans, while real estate loaning is a kind of long term credit. Therefore, Sacombank, though having profuse capital, still limits real estate loaning. According to Tran Anh Tuan, Director of the HCM City Housing Development Bank, his bank follows very strict policies in funding real estate purchase deals in order to limit lending to speculators. The bank only provides loans to the projects that get investment licenses already. Meanwhile, Asia Commercial Bank (ACB) only gives … [Read more...] about Local banks stop real estate loaning, foreign banks jump on the bandwagon
The Hanoitimes - Foreign investors are eyeing real estate projects in the northern region, particularly Hanoi, as they see the region’s potential, heard a conference held by the Commercial Real Estate Services (CBRE) Vietnam Company on January 4. In 2017, Vietnam remained an attractive destination for foreign investors with total FDI capital registered in the country hitting a record high of 35.88 billion USD, up 44.4 percent against last year. Real estate ranked third in terms of FDI attraction, accounting for 8.5 percent of the total registered capital. According to CBRE, since 2017, many foreign investors have paid special attention to Hanoi’s property market. They have joined hands with several big domestic investors to carry out projects, for example, Sumitomo Group’s deal in the northern side of the Red River which is expected to be a hot spot for real estate. The Japanese group decided to participate in Vietnam’s real estate market through … [Read more...] about Hanoi`s real estate projects attracst foreign investors
According to Nguyen Hoai An, Manager of research, consultation, appraisal and asset management of CBRE, many foreign investors have realized the future potential of the real estate market in the Northern region, particularly in Hanoi.In 2017, Vietnam remained an attractive destination for foreign investors with total FDI capital registered in the country hitting a record high of US$35.88 billion, up 44.4 percent against last year.Although not exceeding 10 pct of the total registered capital, FDI in the real estate sector has continuously increased over the past five years. Previously, investment capital in the real estate sector focused on the southern market. However, according to CBRE, since 2017, many foreign investors have paid special attention to Hanoi’s property market.They have joined together with several big domestic investors to carry out projects, for example, Sumitomo Group’s deal on the northern side of the Red River which is expected to be a hot spot for real … [Read more...] about Real estate remains third largest FDI lurer
Particularly, various commercial banks were praised for their efficient handling of bad debts, which provided momentum for the further growth of the stock market.Besides, a significant number of enterprises plan to increase charter capital as well as list on the stock market, which would in turn raise the supply of securities.To boot, blue-chip stocks continue to be the primary choice of investment funds, particularly overseas funds, because enterprises running effective operations are more likely to be trusted by foreign investors.Due to determinants such as the substantial investment demand and the appearance of FDI inflows into project development, the real estate market would potentially preserve the price stability enjoyed throughout 2018.The increasing supply in the real estate market remained unchanged during 2016-2017, leading led to excess supply by the end of 2017. This was particularly apparent in the high-end apartment segment.In addition, propelled by the steady demand for … [Read more...] about Real estate and stock markets to rise above market in 2018?