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Real estate boom predicted
Experts predict that by the end of 2010, Viet Nam's real estate market will be more ebullient than last year, thanks to the abundance of properties.
However, according to professionals, property prices are expected to be erratic.
The construction of a series of large apartment buildings started in the capital city of Ha Noi last December, signalling an increase in demand, experts said. The most noteworthy are six apartment buildings in the Viet Hung new urban area and a high-class apartment building in Ha Dong, they added.
To reduce population density in the city centre, Ha Noi authorities plan to build satellite urban areas in Soc Son, Me Linh, Quoc Oai, Xuan Mai and Mieu Mon in the near future.
However, experts stated that the signals are not strong enough to help stabilise property prices in Ha Noi. They said the cost of small and medium-d apartments may rise sharply, as demand for these kinds of apartments increases. At present, there is a lack of low-priced apartments costing VND300-500 million while there is a surplus of higher-class apartments priced at VND2-3 billion.
Dang Van Quang, Chief Consultant at Jones Lang LaSalle Viet Nam, attributed the paradox to continual price fever in the cheap property market last year.
Meanwhile, in HCM City, investors and buyers will have much to look forward to when 25,000-30,000 apartments are released to the market this year. However, only a small number of these are in the lower price range.
Nguyen Manh Ha, Director of the Department of Housing Development and Property Market under the Ministry of Construction, said he believed that the property market would adjust itself as the demand for mid-range accommodation remains very high.
Last year's census showed that there are 25.4 million people in the country's urban areas while the total housing area is 309 million square metres (Equivalent to 12.8 square metres per person. It is expected that the population in urban areas will rise to around 35 million in 2015 while the average per capita housing area should be raised to 15 square metres, making the demand for housing in urban areas around 525 million square metres.
vietnamnews
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