A corner of Phu My Hung urban area in HCM City. The local property market has shown signs this year that property development will continue, after a weak 2013. — VNA/VNS Photo Kim Phuong

HA NOI (Biz Hub)— The local property market has shown signs this year that property development will continue, after a weak 2013, according to experts.

Early this week, Novaland Group said it will invest VND3.7 trillion (US$176.2 million) to purchase three building projects, including commercial and residential properties in HCM City, as it expects the local property market to improve in the next few months, reported the Thoi bao Kinh te Viet Nam (VnEconomy) newspaper.

Phan Thanh Huy, Novaland's general director, stated that the group decided to buy the three projects as they fit into its development strategy.

The local property market is entering a new development period and there is demand for property products, Huy noted.

It is now a good time for enterprises to complete projects for consumers who need them, he remarked.

Many experts have said this year that there is demand for apartments in urban areas, including provinces and cities, in the local property market, so domestic investors are expected to focus on selling and buying apartment projects.

Tran Duc Dien, director of Maxland property's trading floor, told Nguoi Dong Hanh online newspaper that the local property market has been recovering since the last quarter of 2013.

Maxland's transactions increased 35 per cent in the last quarter of 2013, as compared to the same period in 2012, he said. Customers have chosen products that are cheaper, while demand for luxury properties has begun to increase.

However, economic expert Alan Phan told BizLive online newspaper that the property market this year will not see significant changes because the average income of the Vietnamese people remains low, while prices of properties, according to investors, are not expected to decline further.

The market will improve dramatically, however, when selling prices of properties approach the people's average incomes, he remarked.

This year, the property market will start to recover, he said, and reach its peak in 2015-16.

Nguyen Duy Minh, general director of Hung Thinh Property Company, noted that this year investors who have capital and a reputation will be able to complete their unfinished property projects. — VNS