When real estate market will crash

The credit quality of real estate firms is at a good level with financial leverage below 1.5x. During the first seven months of 2022, over VND420 trillion (US$18 billion) was pumped into the real estate market. The figure could be raised to VND800 trillion ($34 billion) by the end of the year in case of favorable conditions. Investors looking at a real estate project in Me Linh District, Hanoi. Photo: Pham Hung Economist Can Van Luc, a member of the National Financial and Monetary Advisory Council, shared the view at a real estate forum held on August 17, noting the figure is huge compared to total investment capital for the economy. According to Luc, while transaction activities have been subdued in recent months, this would pose a golden opportunity to restructure the market for more sustainable growth. “In the past, real estate was widely seen as the first option when people explore fields to invest in, and that is a huge risk to the economy,” Luc said. … [Read more...] about Over US$34 billion set to pour into Vietnam’s real estate market this year

According to economist Can Van Luc, there are at least four capital inflows into the real estate market: credit capital, private capital, foreign direct investment (FDI), and corporate bonds. Data from the State Bank of Vietnam (SBV) shows that, as of June 30, total outstanding loans from banks in the real estate market were estimated at over $102.6 billion, up 14.07 per cent against late 2021, higher than the overall growth rate of 9.35 per cent and accounting for 20.74 per cent of the total credit balance of the whole system. Private capital reached about $2.6 billion, accounting for about 20 per cent of the total registered capital of newly established real estate businesses in the first seven months of 2022. FDI reached more than $3.21 billion as of July 20. Real estate corporate bonds were estimated at $1.9 billion, accounting for about 22 per cent of total issuance in the past seven months. Credit for business real estate increased by 8.19 per cent, accounting for 33 … [Read more...] about $34.7 billion to be poured into real estate market

According to economic expert Can Van Luc, there are many factors that positively affect the real estate market including the relatively good economic recovery, the acceleration of the program of socio-economic recovery and development 2022-2023, and public investment. In addition, legal issues have been and are being resolved while interest rates and basic exchange rates were stable despite strong upward pressure. In particular, the credit market is having bright spots. From now until the end of the year, there will still be a new credit wave for good property projects and by 2023 there will be a new credit room. However, challenges still remain because the economic recovery is not sustainable and the supply is not immediately abundant whereas the prices of energy and raw materials also increased. The Government and responsible agencies have been tightening management of the corporate bond market. Regarding specific developments in the market, a representative of CBRE Group … [Read more...] about Experts forecast real estate market for next year

Ilustrative image (Photo: VNA) Hanoi (VNS/VNA) - The real estate market of Vietnam showed signs of recovery and more balanced development in the second quarter of this year with increases in the number of successful transactions of apartments, houses and land, according to the report of the Ministry of Construction. The absorption rates were high in most product segments while there were no new inventories, and the vacancy rate of office and commercial space for rent gradually decreased. The ministry said there were almost no affordable apartments with prices from 25 million VND to 30 million VND per sq.m at commercial housing projects in central areas. Apartments at these prices were only available in a few projects in areas away from the city centres. Some projects at this price range were xpHomes in Dan Phuong district, Gemek Premium in Hoai Duc, Xuan Mai Complex in Ha Dong, Hanoi; Dream Home Riverside in District 8, Ehome S in District 9, HCM City; and FPT City Da … [Read more...] about Real estate market is gaining balance: ministry

New potential and trends The Indochina Kajima Development Company, a joint venture between Indochina Capital and Kajima Corporation, recently launched an industrial real estate investment and development platform focused on the nationwide roll out of factory and warehouse properties for lease throughout the country’s key manufacturing and logistics markets. The Core5 Vietnam platform ( www.c5ip.vn ) plans to offer industrial assets of some US$1 billion in the next 5-7 years. Germany’s Framas Group has rented a ready-made factory area of ​​20,000 square meters in the KTG Industrial Nhon Trach 2 project (Dong Nai Province). Framas specializes in the production of high-quality plastic parts for customers such as Nike and Adidas. According to Fabian Urban, Head of Footwear Technology at Framas Vietnam, Vietnam was chosen as a factory site because of its superior facilities compared to other locations. The establishment of the new factory is part of the group’s strategy to … [Read more...] about Industrial real estate market recovers strongly

The recent real estate market report of Savills Vietnam showed that in the first half of the year, the situation of the real estate market in Hanoi showed signs of recovery in commercial leasing activities, serviced apartments, housing purchases, and hotel room rental capacity. Savills Vietnam hosted an event on Vietnam's real estate market outlook on August 17 In the first half of the year, Hanoi's economy grew by 7.8 per cent, a rise of 29 per cent on-year and higher than the 7.2 per cent increase in the first half of 2019. Total retail sales of goods and services reached $14.6 billion, up 16.5 per cent on-year. However, the rental space market was not very good, as occupancy decreased by 3 percentage points on-quarter, and 4 percentage points on-year, reaching 89 per cent. The west reported the highest increase in the additional rental area, reaching 30,600 square metres. The retail podium saw the highest increase in leasable area, reaching 12,200sq.m, continuing … [Read more...] about Hanoi’s real estate market to recover soon: Savills Vietnam