Property experts applaud government policy

Many real estate experts consider Hanoi’s master plan by 2030 and a vision towards 2050, which has been approved by the government, a very important legal foundation.
Speaking at a seminar in Hanoi a fortnight ago, Tran Ngoc Chinh, Chairman of the Vietnam Urban Planning Association, said the master plan would have a positive impact on property projects.

This is a foundation for enterprises to select and focus on projects with appropriate scales and locations, he said.

After the master plan was approved in July, Hanoi’s government said it would continue to revise planning to develop satellite urban areas and industrial parks, giving a boost to the property market in Hanoi as well as in neighboring provinces and cities.

Duong Duc Tuan, Deputy Director of Hanoi’s Architecture and Planning Department, said Hanoi planned to develop 30 projects for urban areas and districts, 30 projects for smaller sections in the city and 60 other projects for detailed and distinctive planning.

A recent survey shows that investors are seeking condos priced from 2.5 billion dong and below, located not too far from downtown and having good infrastructure.

They’re also interested in small land lots in residential areas to build homes. However, Vu Xuan Thien, deputy head of the housing and property management department under the Ministry of Construction, said the market still had a modest supply.

Only 30 percent of 85 million square meters of housing space in the city are commercial products while residents build the rest.

After Hanoi extended its boundaries, housing demand remains very high.Property prices soared sharply in the city between 2009 and 2010 with condo prices shooting up 40 percent – 50 percent.

The prices then have decreased significantly given the gloomy market but are still higher than in 2010.

Thien said the dreary situation was just temporary before the market can adjust.

Chinh said the government had organized numerous meetings to make suggestions for a better real estate market.

“In my opinion, the realty market will recover from now until the end of this year,” Chinh said.

“The main point is how to invest in real estate.”

Aside from high housing demand and lower lending rates, positive signs from macro policies will also contribute to the recovery.

According to some real estate exchange centers, successful transactions have increased by 20 percent in a number of segments.

Investors aren’t just interested in downtown areas but also outlying districts such as Long Bien, Dong An, Tu Liem and Thanh Xuan.

Local experts, however, said the sustainability of the recovery depends on primarily consumer psychology.

To prevent risks, Chinh advises investors to stay calm, follow the planning and scale of realty projects and consider their financial capability.

Tags: Vietnam Property market, Vietnam property sector, vietnam real estate market