Realty market closes 2010 with exciting movements

Real estate market Vietnam closed a year with exciting movements in most segments. Along the development process in Vietnam, many new types of real estate have been launched, such as coastal real estate, golf resorts, and various forms of retail real estate.

Housing market for middle income earners have grown rapidly.

Growth remains strong in two main cities Hanoi and HCM City.

The challenge for real estate market in 2010 continued to be domestic capital cost. Investors had to find alternative financing such as certificates of corporate debt, or issuing shares to foreign countries. High cost of capital also made people difficult to access loans. The government should change the financing models to soon carry out large public infrastructure projects.

Vietnam owns favourable macro-economic conditions which could have good impact on real estate market, such as high rate of urbanisation, young population, increasing wealth level, higher independence ability on housing, and high rate of consumption.

The legal policies enacted in 2010, which have not made obvious influence in 2010, would start putting positive impact in 2011.

Savills Vietnam assessed that 2011 could be a positive year if careful consideration were made. The market would be stable in the first six months of the year, since the market is waiting for good results from the National Assembly election.

Political instabilities and crises in neighbouring countries could be less tense in 2011 and that would thus strengthen the competitiveness of these countries in attracting investment capital.

No specific conclusion could be made to the domestic supply and regional competitive pressure.

According to Savills, although there are still some major challenges for the real estate market, it would generally have a good growth prospect.

Retail segment would have many opportunities to develop due to the high growth of retail segment and large consumer forces, said Troy Griffiths, National manager, Head of Research and Valuation at Savills Vietnam.

In addition, 2011 is predicted to be an exciting year for retail market, since retailers would satisfy the needs for leisure and entertainment of consumers within the shopping centres.- Savill

Tags: vietnam real estate market