Recent interest cuts by the State Bank of Vietnam could send trillions in savings into the property market, according to the Vietnam Association Of Real Estate Brokers.
Viet Nam’s strong economic growth since 2015 has pushed the domestic property market into a thriving and stable development period. The country’s real estate market is expected to maintain growth rate during 2018, said Pham Hong Ha, minister of Construction.
Viet Nam’s three-year run of growth in its residential property market is expected to continue in the short term, a study conducted by FT Confidential Research (FTCR) has revealed.
The property market of Viet Nam is attractive to foreign investments due to the country’s rapid ubanisation, open policies and improved investment climate, experts said.
Problems in planning and large gaps between land prices and incomes will pose challenges for the property market over the next few years, experts said.
The property market expects to see a wave of property developers expanding into affordable housing developments as this segment was in a severe shortage and the Government was taking steps to promote investments.
The property market will continue recovering but experts told an online forum held by Dau Tu (Investment) newspaper yesterday that they do not expect breakthroughs in the second half of this year.
A regulation ordering bank guarantees to become mandatory for property
purchases, which was to be completed in the future, has caused mixed
concerns among property developers and buyers.