Vietnam’s property market expected to continue growth trend
Vietnam’s three-year run of growth in its residential property market is expected to continue in the short term, according to a survey conducted by FT Confidential Research (FTCR), a research service of the UK's Financial Times.
London(VNA) – Vietnam’s three-year run of growth in its residential property market isexpected to continue in the short term, according to a survey conducted by FTConfidential Research (FTCR), a research serviceof the UK's Financial Times.
FTCR data show that would-be buyers are more confident about making purchases inVietnam than most other ASEAN countries amid optimism about rising prices.
The fourth-quarter surveyfound 8.5 percent of Vietnamese saying they planned to buy an apartment thisyear, equivalent the ratio in the Philippines but significantly higher than inIndonesia, at only 2.6 percent.
According to FTCR, Vietnam Property Price Expectation Index increased to 85 pointsin early 2017 from under 50 points in early 2013. This indicates the recoveryin Vietnam’s residential property market, which emerged three years ago from abank debt-fuelled downturn, has some way to run.
An improved environment for bank lending, along with low inflation, stronggross domestic product growth in the past two years, rising incomes and rapid urbanisation- at roughly three percent annually - have contributed to investment fromdevelopers and homeowners. In addition,liberalisation of the market for foreign buyers in 2015 - in particularallowing a quota-based system for ownership in certain residential segments -helped produce an unprecedented level of foreign investment in the country.
FTCR said total investment in the field accounts for 7 percent of the total24.4 billion USD of newly registered foreign direct investment into Vietnam in2016.
In addition, there are several differences between the current cycle and thatof the mid-2000s boom that suggests this is more sustainable. Much of thedemand from buyers is for end-use, while most developers are dedicated propertycompanies focused on mid-end segments, it noted.
The Vietnamese market is expected to remain on an upswing, particularlyrelative to other markets in the Southeast Asia, it added. FTCRis an independent research service from the Financial Times, providing in-depthanalysis and statistical insight into China and ASEAN member nations.-VNA
After posting a stable performance this year, the property market is poised for solid growth in 2017, driven by the improved economic situation, and developers more focused on market demands.
Housing developers in the country especially in HCM City will shift from luxury apartments to the mid- and low-end segments next year, experts have said.
The property market of Vietnam is attractive to foreign investments due to the country’s rapid ubanisation, open policies and improved investment climate, experts said.
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Illustrative image (Source: VNA) 
