Many people are questioning whether now is the time for property investors to return to the Vietnamese market.
Marc
Townsend, Managing Director of CBRE, said: “The property market sees
many good pedestals, from the economy’s recovery to support policies,
etc. It is the time for investors to start returning to the market.
Townsend
was speaking at a press conference announcing a market report on Ho Chi
Minh City’s property market for the first quarter help last month.
According
to CBRE, the economic recovery and the strong development of
infrastructure are two of many factors consolidating homebuyers’
confidence.
Besides, the strong growth of the stock market and
continuous reduction of deposit interest rate have started stimulating a
new capital flow poured into the market by investors.
In Q1
2014, sales from the HCMC apartment segment increased and reached a 9.8
percent quarter-on-quarter increase and a 92.2 percent year-on-year
increase with around 2,600 apartments being sold to the market.
The
noticeable thing is that not only mid-class apartments but also hi-end
apartments have been recently favoured. Many people have bought hi-end
apartments to offer for lease.
Townsend said: “This is the first
time after many quarters, the market has witnessed all segment being
eventful again. Many enterprises pay attention to introducing and
advertising projects again before offering them for sale. This shows
that the confidence in the market is recovered.
He added that the
market has seen new shift, the eastern of HCMC – where the most
developmental infrastructure projects such as Long Thanh – Dau Giay
expressway, Ha Noi highway, Thu Thiem tunnel and road are being paid
attention to by investors.
According to CBRE’s survey, in HCMC, 5
buildings are under construction and are expected to be completed
within 2014. These are official buildings in District 1, 3, and 10,
including MB Sunny Tower, SGGP Tower, Vietinbank Tower, Vietcombank
Tower and Viettel Tower. Of these buildings, only MB Sunny Tower was in
operation.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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