Vietnam's social and economic factors are supporting the growth ofits real estate market, which has bottomed out, an executive at propertyconsulting firm Savills Vietnam has said.
Managingdirector Neal Macgregor told a press briefing on the HCM City propertymarket over the past 20 years that 17 – 20 percent of remittancesflowing into the country went into direct property investment.
"Vietnam is in the top 10 foreign remittance recipients globally, withlast year's figure at around 12.5 billion USD. This is up from lessthan 2 billion USD in 2000.
"The quantitative easingthroughout the region will benefit the respective domestic economiesand also encourage foreign investment into other regional targets," hesaid.
Recently outward flow of capital had accelerated, noticeably from Singapore, the Republic of Korea, and Japan.
The amended Law on Housing effective from July 1, 2015, which willenable overseas Vietnamese and foreigners to own houses in the country,is expected to attract a new wave of investment.
Singaporeans have shown interest, especially in projects developed by companies from their country.
Vietnam's coastline could quickly draw foreign investors, withresidential products of international standards and oriented towardsforeign purchasers already being available.
According to Savills Vietnam, the lowering lending rate is helping revive the market.
"Vietnam's current [lending] interest rate is around 9 percent, however this low cost of debt has only recently emerged.
"In 1995 it was around 20 percent."
The shrinking of household size from an average of 4.7 people in 1995to 3.6 last year has also increased demand for housing.
"As younger people gain greater independence, there has been a gradualerosion of the three-generation household, the effect has been to fuelresidential apartment development."
The country'surbanisation rate, from less than 20 percent in 1995 to 34 percent lastyear and its rapidly growing middle class — expected to reach 33 millionby 2020 from 12 million in 2012 — are other positive factors for theproperty market.-VNA
Managingdirector Neal Macgregor told a press briefing on the HCM City propertymarket over the past 20 years that 17 – 20 percent of remittancesflowing into the country went into direct property investment.
"Vietnam is in the top 10 foreign remittance recipients globally, withlast year's figure at around 12.5 billion USD. This is up from lessthan 2 billion USD in 2000.
"The quantitative easingthroughout the region will benefit the respective domestic economiesand also encourage foreign investment into other regional targets," hesaid.
Recently outward flow of capital had accelerated, noticeably from Singapore, the Republic of Korea, and Japan.
The amended Law on Housing effective from July 1, 2015, which willenable overseas Vietnamese and foreigners to own houses in the country,is expected to attract a new wave of investment.
Singaporeans have shown interest, especially in projects developed by companies from their country.
Vietnam's coastline could quickly draw foreign investors, withresidential products of international standards and oriented towardsforeign purchasers already being available.
According to Savills Vietnam, the lowering lending rate is helping revive the market.
"Vietnam's current [lending] interest rate is around 9 percent, however this low cost of debt has only recently emerged.
"In 1995 it was around 20 percent."
The shrinking of household size from an average of 4.7 people in 1995to 3.6 last year has also increased demand for housing.
"As younger people gain greater independence, there has been a gradualerosion of the three-generation household, the effect has been to fuelresidential apartment development."
The country'surbanisation rate, from less than 20 percent in 1995 to 34 percent lastyear and its rapidly growing middle class — expected to reach 33 millionby 2020 from 12 million in 2012 — are other positive factors for theproperty market.-VNA
