The Hanoi real estate market will beless active during the last quarter of the year, according to realestate experts.
Chairman of the Hanoi Real EstateClub Nguyen Huu Cuong said that while the real estate market might warmup slightly, many opportunities for profit were unlikely.
Cuong attributed the slow sales in part to Decree 71/2001/ND-CP onimplementing the Law on Residential Housing of Vietnam, which came intoeffect in early August.
The decree stipulates thatno more than 20 percent of apartments in housing construction projectscan be sold before construction begins at a special rate to investors inthe project.
As a result, investors had shied awayfrom apartment construction projects, or decided to delay theirinvestments until early next year, said Cuong.
Supply of apartments on the market has also reduced. A survey on themarket during the third quarter of this year, conducted by CBRE thismonth, found the number of apartments on sale had fallen by almost 60percent over the previous months.
The decrease isattributed to the rescheduling of sales plans for the last quarter thisyear. Many major investors are delaying sales until the release of theGovernment's plan for Hanoi's development. The plan is set to betabled by the end of this year. It is expected that from now to the endof this year, 3,000 apartments will go on sale, bringing the total onthe market throughout the year to 16,000.
DeputyMinister of Construction Nguyen Tran Nam said housing with pricesaimed at middle-income earners offered the greatest potential forinvestment this year./.
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