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Speculators plague market
According to a report released by the Viet Nam Report Company, only 38 per cent of customers that purchase real estate in Ha Noi for residential purposes and 62 per cent are investors.
The report claimed that 48 per cent of the investors purchase properties to make fast profits, while the remaining 52 per cent are more interested in the real estate's long-term potential.
The document states that 44 per cent of real estate investors use their own personal funds to finance their purchases and about 35 per cent of investors rely on loans from their friends and relatives. Only 20 per cent of investors admitted to having borrowed money from banks to invest in the industry.
Specialists from the company also forecast that the capital estate market would be stable during the second half of the year.
"Accordingly, land price ‘fever' would not have the opportunity to occur during this period," said the company's Vice Chairman Phung Hoang Co.
He added that capital invested in the estate market for speculation purposes would shift from Ha Noi to other potential markets that would yield higher short-term profits.
Estate prices, therefore would remain the same or slightly deflate later this year.
The report forecasts that apartment transactions would be more eventful during the last six months of the year.
Apartments for average income earners are currently attractive to investors. The report said that estates in Tu Liem and Ha Dong Districts have also brought big profits to investors.
About 500 consumers and investorswere surveyed in the capital's six districts, plus experts interviewed, for the report.
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