CBRE still sees potential in sullen property market

Hanoi’s improved infrastructure contributes to a plethora of new properties being developed

Managing director of CB Richard Ellis in Vietnam, Richard Townsend, believes that there is still hope for individual investors and corporations who are seeking out business opportunities.

As of the moment, HCMC housing prices remain to be stable, while in Hanoi the property market has become a free for all in hopes that stability can be obtained over time.

Currently, Hanoi as 16,000 units have unsold apartments and an additional 22,000 is expected to be on the market this year.

As market movements are still very unstable, the tentative attitude amongst buyers play a large part in the market. Hence, the percentage of Hanoi’s successful apartment transactions last year had a tremendous decline.

Yet, the numbers of apartment units sold in 2011 are on par with prior years, which still depicts that there is in fact a demand. CBRE predicts that the first group to recover will be those individuals who are of middle-income who can afford units below VDN12 million (US$576,00) psf.

Also noted, as gold prices continually decline, individuals are looking to transcend from investing in gold to property.

As Hanoi’s improved infrastructure and expansion last year contributes to a plethora of new properties being developed on the outskirts, predominately in the western areas.

With Pham Van Dong Street in the west expanding and Nguyen Van Linh in the east as well as four over passes being completed this year, which attracts investors according to Townsend.

In the last year, Vietnam has seen a multitude of projects crossover from foreign investment. According to Townsend, these project transactions could cause for mergers and acquisitions (M&A) to prosper and 2012 and thereafter.

Filed Under: NewsNews by CountryVietnam


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