More investments back property market recovery

Live Quote: On

RSS

My Page | Contact Us

RSS

RSS

Company A-Z | Stock Screener | My Portfolios | Streaming Quotes | Technical Analysis

Investing Tools

Useful Links

Thursday, May 2, 2024 9:32:19 PM - Markets open

VN-INDEX

1,216.36

+6.84/+0.57%

HNX-INDEX

227.49

+0.67/+0.30%

UPCOM-INDEX

89.70

+0.94/+1.06%

More investments back property market recovery

Saigon Times - 1/7/2016 8:53:55 AM

(0 ratings. You must sign in to rate.)

Print |

Add To Favorites |

Email |

RSS

The year 2015 saw a sustained recovery of the property market, supported by more investments by local and foreign enterprises and a strong rise in successful transactions.

According to the Business Registration Agency under the Ministry of Planning and Investment, the property market has steadily recovered, thus attracting more investors.

The agency said startups last year rose by 26.6% to nearly 95,000 but the number of newly established enterprises in the property sector surged 86.2%. Fewer realty firms were dissolved or suspended than in 2014.

Property investments made up nearly US$2.4 billion out of US$22.76 billion in total foreign direct investment registered for projects in Vietnam for all of 2015. Foreign firms invested in the local property sector by buying stakes at real estate enterprises, contributing capital directly and lending to projects in the sector.

HCMC attracted around US$1.3 billion, more than half of FDI capital poured into Vietnam’s property market.

The 2015 report of the HCMC Real Estate Association (HoREA) said the HCMC market continued recovering in segments like housing, office for lease, industrial property and commercial property last year.

According to HoREA, last year saw over 26,000 housing transactions done, 1.5 times higher than in the previous year. Housing prices picked up 5-6%, with low-end apartments posting the smallest price rise of only 2%, medium-end ones up 5%, upper-medium ones up 5-8% and high-end ones up 5-15%.

HoREA said there were a number of growth drivers for the property market. Many commercial banks joined hands with property developers to provide capital for enterprises and lend to home buyers.

In HCMC, last year’s property credit reached some VND140 trillion, accounting for 12.3% of total outstanding loans. In addition, 21.6% of US$5.5 billion remittances in the city went to the property sector.

Chairman of HoREA Le Hoang Chau said the property market started to recover in late 2013.

HoREA’s review report pointed out the number of secondary investors in HCMC’s property market inched up three times against 2014. This reflected the improving market but also risk of instability.

Secondary investors mostly buy and sell high-end homes to earn profit thanks to price differentials and currently make up 15% of home buyers in the city.

According to HoREA, secondary investors often take out high-interest loans accounting for up to 70-80% of a home’s value.

In the land lot segment, secondary investors account for 30-40% of buyers.

Newer News
19/04	Ministry requests Hà Nội to inspect rising prices of apartments
17/04	Real estate market has positive performances in Q1: VARS
05/04	Developers must verify with foreign homeowner's database before sales
28/03	Management of real estate brokers to be tightened
23/03	HCM City real estate market to recover in H2
23/03	Industrial real estate emerges out of storm
18/03	Lots of ground to cover to build 130,000 social housing units this year
12/03	Deputy PM urges resolving price manipulation for healthy real estate market
12/03	Limit set on interest rates of loans for social housing
21/02	Experts upbeat about real estate prospects

Older News
28/08	VNREA: Jan-Jul housing transactions in city double
27/08	Dong devaluation will have ‘modest’ impact on property market: report
27/08	Tumbling stocks, gold may drive investors to real estate
25/08	Viet kieu, foreigners invest in homes
12/08	HoREA: Property market recovery fragile
05/08	Foreign capital pours into real estate in HCM City
03/08	Vietnam's fast rising property market leaves hard times behind
31/07	Experts pick holes in new bank guarantee for apartment buyers
31/07	Many foreigners eager to buy homes in Vietnam, gov’t urged to clarify funding rules
24/07	Hanoi & HCMC residential price index up

Newsletter Signup