Real estate market: the time of recovery remains unclear
90% of polled real estate experts in the survey conducted by VietRees, a real estate research and consultancy firm, said that they have confidence in the recovery and strong development of the real estate market in the future.
However, 70% of experts said that they cannot say anything exactly about the moment of market recovery, adding that the market development depends on many factors which make it difficult to make forecasts.The result of the survey has been released after VietRees considered the opinions of 33 leading real estate experts who are working for state management agencies, high ranking leaders of big real estate groups, and companies.The survey aims to define the confidence by people in the potentials of market development in the future.In fact, some experts still believed that the real estate market does not have any major problems, and that in the time to come, the market’s performance will depend on the stability of the financial market and the national economy.100% of experts think that the market is facing a lot of difficulties, but 90% of them said they will keep optimistic about the future of the market. 30% of experts think that the market will recover in 2009 or 2010.The experts have every reason to believe in the bright future of the market. Le Hoang Chau, Chairman of the Vietnam Real Estate Association, said that even in the difficult period of the market, some segments still can see robust development, saying that the supply of apartments and offices for lease still cannot meet the demand.Jean Chretien, former Canadian Prime Minister, now advisor to ACDL-Asian Coast Development Ltd., also said that the difficulties now in the real estate market are just temporary. He said that Vietnam’s real estate market remains full of potentials, which has been attracting foreign investors.Don Lam, Director of VinaCapital investment fund, said that there remain large potentials with medium-class apartments. Vietnam has a large percentage of young people in the population, and Vietnamese couples do not want to live together with their parents and need separate accommodations. An apartment, which is selling at US $1,200/sq m, may increase to US $1,400/sq m due to the short supply.Nguyen Hong Quan, Minister of Construction said that the demand has always been higher than the supply, and the supply-demand imbalance will last in the future due to the rapid urbanization. In order to have 20 sq m of accommodation per capita by 2020, Vietnam needs to have 35 million square metres more a year in urban areas.
VET
90% of polled real estate experts in the survey conducted by VietRees, a real estate research and consultancy firm, said that they have confidence in the recovery and strong development of the real estate market in the future.
However, 70% of experts said that they cannot say anything exactly about the moment of market recovery, adding that the market development depends on many factors which make it difficult to make forecasts.The result of the survey has been released after VietRees considered the opinions of 33 leading real estate experts who are working for state management agencies, high ranking leaders of big real estate groups, and companies.The survey aims to define the confidence by people in the potentials of market development in the future.In fact, some experts still believed that the real estate market does not have any major problems, and that in the time to come, the market’s performance will depend on the stability of the financial market and the national economy.100% of experts think that the market is facing a lot of difficulties, but 90% of them said they will keep optimistic about the future of the market. 30% of experts think that the market will recover in 2009 or 2010.The experts have every reason to believe in the bright future of the market. Le Hoang Chau, Chairman of the Vietnam Real Estate Association, said that even in the difficult period of the market, some segments still can see robust development, saying that the supply of apartments and offices for lease still cannot meet the demand.Jean Chretien, former Canadian Prime Minister, now advisor to ACDL-Asian Coast Development Ltd., also said that the difficulties now in the real estate market are just temporary. He said that Vietnam’s real estate market remains full of potentials, which has been attracting foreign investors.Don Lam, Director of VinaCapital investment fund, said that there remain large potentials with medium-class apartments. Vietnam has a large percentage of young people in the population, and Vietnamese couples do not want to live together with their parents and need separate accommodations. An apartment, which is selling at US $1,200/sq m, may increase to US $1,400/sq m due to the short supply.Nguyen Hong Quan, Minister of Construction said that the demand has always been higher than the supply, and the supply-demand imbalance will last in the future due to the rapid urbanization. In order to have 20 sq m of accommodation per capita by 2020, Vietnam needs to have 35 million square metres more a year in urban areas.
VET
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