Vietnam real estate market an unknown for 2009Global stock markets, according to analysts, are likely to be in for a difficult year in 2009. And Vietnam´s stock market is no different. However, there appears to be a consensus amongst leading Vietnam analysts that the recovery depends largely on government policy and action over 2009.

The real estate market, is also uncertain. VietNamNet Bridge recently reported that VietRees, a market surveyor, collected the opinions of 33 real estate experts, domestic and international. 70% of the experts said they were not certain about when the real estate market would recover. Only 12% of experts asserted that the market would recover by the end of 2009, while the remaining experts thought that the market would recover after 2009.

Despite low interest rates, lower construction costs and inflation under control, there are still uncertainties in the market. Banks are not expected to offer many new loans to developer, rather focusing on debt collection on previous loans, and taking a conservative approach to lending in 2009.

There are concerns pressure from banks for developers to repay debts will mean developers cut prices in order to sell stock. However, not all expect reductions in prices.

According to a report in  VietNamNet Bridge,  Pham Thanh Hung, Deputy General Director of CEN Group, a real estate developer, does not think that there will be big changes in real estate prices. Some areas and projects will see prices drop further, while some other areas and projects may keep prices unchanged if the infrastructure in the areas is improved.
 
“There will be a lot of investors facing bankruptcy. A lot of investors have announced tremendous projects, but they still cannot do much. There will be the investors who die quietly and slowly,” Hung said.