Can Tho City will solve existing difficulties in property trading activities to recover its real estate market in five years, according to its urban development plan by 2030.

Can Tho City is a city directly under the central government and the economic centre of the Cuu Long Delta region, Nguyen Tran Nam, chairman of the Viet Nam Real Estate Association and former deputy minister said at a working day earlier this week with the People’s Committee of Can Tho City about implementing the urban development plan by 2030.

According to the plan, Can Tho will become a centre for industry, trade, service, education, training, science, technology, health and culture in the region, and a gateway city of the Lower Mekong River as well as an important international and regional transportation hub.

The city has a population of 2 million people, so demand for property is high, Nam said. Its greatest potential lies in the South West property market, while there is strong competition among large cities in the South East such as HCM City, Binh Duong, Dong Nai and Ba Ria Vung Tau provinces.

However, the association’s survey shows that the property market in Can Tho City has not been efficient. Many land projects, new urban areas and luxury apartments have not been successful in attracting customers, so the investors have faced large loans at the banks.

Property trading floors were quiet and had few customers, Nam said.

Property projects in the city have not attracted customers though property traders and owners of the projects have attempted many attractive trade promotion programmes, including support for borrowing money.

Therefore, many potential investors in the property sector must move from Can Tho City to other provinces and cities to seek opportunities, according to the association.

Vo Thi Hong Anh, deputy chairwoman of the People’s Committee of Can Tho City, said the largest obstacle for the municipal property market is the difference in quality of life, health care, education and entertainment between Can Tho City and large cities like Ha Noi, Da Nang and especially HCM City.

The city has attracted property enterprises but they have faced difficulties in attracting customers because of the limited financial ability in Can Tho.

However, Anh said that from the end of 2015, the real estate market in Can Tho City began to see positive changes when Lotte and Vingroup, two large investors, invested in projects to develop trading centres, entertainment facilities and residential projects.

The prestige and scale of these projects had attracted local and foreign customers, she said.

The municipal Department of Planning and Investment said property transactions in urban areas in the south of Can Tho City improved in the last six months, while some companies plan to release new projects this year to meet increasing demand.

Additionally, South Korea’s Taekwang company, an export sport shoe producer, began operations this year with 15,000 workers. The workers have been looking for accommodation close to the company.

Bui Ngoc Vy, deputy director of the department, said this year the city would focus on promoting co-operation with local and foreign enterprises and investors to implement about 400 urban development projects, improving quality of urban areas and attracting more investors.

Of which, the city would co-operate with Vingroup to build a system of hotels, golf courses and resorts for developing tourism as well as improving the value of property around the system and attracting more investors to the area around the system.

The city would also develop housing projects for low-income people and workers of key industrial zones. It would give preferential loans for projects that upgrade houses of the people.

The city has targeted to have as developed a property market as HCM City in 2030. - VNS