More than 200 new real estate firms were established every day during the first two months of the year, according to the General Statistics Office.
While the thousands of new businesses is seen as one sign of a real estate recovery in the country, others are wary of such an increase.
Vietnam’s real estate market has been dormant over the past few years, but 2015 has been widely heralded as the turnaround year with changes expected in foreign property ownership laws.
The 89 percent year-on-year increase in the number of new real estate businesses formed in January and February was attributed in the anticipation of a booming real estate market this year.
“Investors are rushing to set up real estate firms in anticipation of the bustling real estate market this year,” one analyst told local media.
Reports suggest that an estimated 223 new real estate businesses are registered every day.
Le Dang Doanh, a renowned Vietnamese economist, told journalists that investors established new businesses moment because they heard good news about the stable macro economy, lower inflation rate and interest rates, but he added that he could not explain why the number of new real estate firms has increased so sharply when the market currently remains dormant.
“I don’t think house and apartment prices will increase considerably this year, and therefore, investors should not expect to make profit from real estate investments,” he said.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
