Search By Building
Search By Budget
The Third Annual Symposium in Ho Chi Minh City about Real Estate Market
The Australian Chamber of Commerce in Vietnam (AusCham) held its third annual symposium in Ho Chi Minh City last week to discuss investment strategies for the Vietnamese real estate market.
Themed “Away to the Races”, the conference attracted the participation of government officials, business leaders, investors, and experts. It aims to provide insight into trends in Vietnam’s real estate market and create an open dialogue for participants to discuss challenges and solutions for developing property in the country.
Former Deputy Minister of Construction Nguyen Tran Nam said that the real estate market, especially the high-end segment, had seen a revival and is likely to develop strongly. In the first eight months of 2015, successful transactions in Hanoi and Ho Chi Minh City reached 13,000 and 12,000 respectively, almost doubling the figures for the same period last year. “Despite the increasing number of transactions in the property market, the price remains stable. Vietnam’s real estate inventory was estimated at VND60 trillion ($2.64 billion) by the end of August this year, a fall of 47 per cent compared to the fourth quarter of 2013. Money is flowing into the property market, especially through foreign direct investment capital and remittances,” he added.
With this positive market outlook, experts have pointed out new investment opportunities from stalled property projects.
“Of the 689 delayed projects in the city, 85 projects are expected to be revoked. Also, the municipal people’s council has directed the people’s committee to revoke other 300 projects in the recent meeting. These delayed projects will become a new source for merger and acquisition deals,” Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, shared. “Novaland, for example, has acquired 50 projects and resumed 20 to date. The firm intends to launch seven projects from now till the end of 2015.”
In this sentiment, Don Lam, VinaCapital’s co-founder and CEO said, “The market is witnessing the rise of local players like Novaland and Vingroup, so we are stepping back and we will play our best as a foreign investor. For VinaCapital, we are also looking for clean and clear projects to develop.”
According to Nguyen Huu Thuy, general director of Vietnam Asset Management Company (VAMC), the company has purchased another VND100 trillion ($4.4 billion) worth of bad debts this year, up $4.4 billion from last year. 68 per cent of assets managed by VAMC are property projects, so the company plans to welcome new investors for these unfinished projects in the future.
Thuy added that the stalled projects were expected to be resumed to create money flow, employment, and income to solve the root of bad debts. Therefore, VAMC is determined to train staff and collaborate with consultants to hand over projects to new investors.
“VAMC is working with relevant ministries and departments to complete profiles and legal documents. We are committed to providing good after-sales service by dealing with arising problems in practice so conditions are favorable for new investors to continue developing projects. VAMC is also co-operating with the Japan International Co-operation Agency (JICA) to establish a set of rules in accordance with international standards, so that foreign investors can get better access to projects,” he noted.
source vietnamnet/ wrote by Thanh Van