Though the global real estate market cooled down after the economic crisis, international real estate developers have still been pouring their capital into Vietnam. This explains why real estate remains the sector which has been attracting most of the foreign direct investment. In the last two years, the foreign direct investment (FDI) in the real estate sector in Vietnam has been decreasing sharply after reaching its peak in 2008 with the total registered capital of $23.6 billion, accounting for 39 percent of the total investment in Vietnam. In 2009, the registered capital for real estate project dropped to $7.6 billion. The latest report by the Foreign Investment Agency under the Ministry of Planning and Investment shows that by the end of the third quarter of 2010, foreign investors had disbursed over eight billion dollars for the projects in Vietnam. The scale of every real estate project remains relatively big, at 144.9 million dollar per project. A lot of foreign investors … [Read more...] about Foreign direct investors return to the real estate market
Real estate market
Vietnam’s real estate market to witness big assignment deals
Big assignment deals in the real estate market are expected to be made in some more days, when the market conditions are good enough for purchases and sales. Soho Vietnam, a real estate consultancy firm is conducting negotiations with its partners to promote some assignment deals. Soho Vietnam’s President Phan Xuan Can said he has in his hand the list of 10 investors, who have ordered to buy some projects, committing to disburse 30-500 billion dong in cash. Can has revealed that some of the affairs would be wrapped up right in the second quarter of 2012. There are three different groups of buyers. The first group includes the long term investors, who previously did business in other fields but now want to jump into the real estate sector when they see the real estate projects’ prices are getting attractive. The second group of buyers includes the enterprises, which have to lease business premises for their head offices and storehouses, and now want to own land plots of … [Read more...] about Vietnam’s real estate market to witness big assignment deals
The noteworthy events in real estate market in 2011
The year 2011 witnesses the dark days in the history of the real estate market. Real estate developers cannot borrow capital to develop projects, while the real estate prices have been decreasing dramatically. The fever attack occurred in early 2011. The story began when the Ministry of Education and Training released a dispatch saying that 12 schools had to relocate to the suburbs, including the 7 satellite areas such as Gia Lam (250 hectares), Soc Son (600 hectares) and Son Tay (300 hectares). The information prompted speculators to rush to buy land in Soc Son district, which then pushed the land prices up. A lot of land plots became three times more expensive than in 2010. The land fever was then spread out to Dong Anh district. However, after that, the land prices in the areas have dropped dramatically, leaving speculators in big losses. 2. "Abandoned" villas have not been settled The Ministry of Construction, after examining 18 projects of 11 investors in Hanoi, found … [Read more...] about The noteworthy events in real estate market in 2011
Government urged to revive real estate market to rescue banks
The stock prices have decreased dramatically, while the real estate market has been frozen with very weak demand. Rescuing the real estate market would not only help revive the market, but would also help clear banks' bad debts. Le Xuan Nghia, Deputy Chair of the National Finance Supervision Council, said that the biggest worry now for the government is the bad debts arisen from the loans to the real estate sector. Nghia said that his council is proposing the Ministry of Construction to build up a financing program to fund housing projects. The lending to the housing projects which are under implementation has also been proposed to last until the end of 2012. Especially, the people who borrow money from commercial banks to buy houses may not have to imperatively pay with their salaries, but with other kinds of incomes, if they can prove that these are legal income. Besides, the government has also been urged to apply the policies that help resume the lending to fund house … [Read more...] about Government urged to revive real estate market to rescue banks
Real estate market paralyzed as giants fall into insolvency
The waves on the real estate market have always been created by the "big guys". Therefore, analysts have every reason to believe that the leave of a series of a lot of "big guys", the real estate market would enter a "hibernation" period. Big guys absent from market For years, the Hanoi real estate has been the aiming point of investors from all provinces and cities of the country. The names of big groups of real estate traders from Quang Ninh, Bac Ninh, Phu Xuyen, Lang Son provinces have become well known on the market. Observers believe that it was the big groups of traders which created big periodic short waves on the real estate market. The real estate price in Hanoi was pushed up and then plummeted when banks tightened credit amid the investors' surprise. In July-August 2010, a real estate project in the west of Hanoi was opened for sale. The land price of the project soared from 55 million dong per square meter to 90 million dong per square meter just one month later. … [Read more...] about Real estate market paralyzed as giants fall into insolvency