VietNamNet Bridge – Experts have affirmed that the real estate market in Van Don, Phu Quoc and Bac Van Phong will not be influenced by the National Assembly’s decision on delaying the adoption of the draft law on special economic zones (SEZs).
The SEZ draft law has been postponed
“The real estate market in Van Don, Phu Quoc and Bac Van Phong (where Vietnam plans to develop SEZs) won’t bear big impact from the decision. It will only have impact on those who surf for investment,” said Dang Hung Vo, former Deputy Minister of Natural Resources and the Environment, a renowned land expert.
“From now on, they will have to think carefully about whether they should pour money into SEZs. They need to be more cautious with investment decisions and a have long-term vision,” he said.
Just months ago, individual investors flocked to three areas after hearing that the SEZ draft law may be ratified this year. They hoped that approval would cause ‘land fever’ and escalate land prices.
Delaying the ratification of the SEZ bill is a reasonable decision as it helps cool the market, which was too hot because of transactions by surfing investors.
“There is no way for the real estate market to collapse because of this decision,” Vo said.
Agreeing with Vo, Tran Dinh Quy, chair of the Khanh Hoa provincial Real Estate Brokers’ Association, affirmed that the real estate market in the three areas remains attractive.
“The decision to postpone the bill approval will not affect investors with long term vision. This is a good thing because it gives them more time to analyze the market to make reasonable investment decisions,” Quy said.
However, the ‘hit-and-run investors’, who rushed to buy land for resale later, when the SEZ bill got official approval, may suffer. They will have to sell land they bought months ago to get money for debt payments. Analysts said most of these investors bought land with borrowed money.
“The real estate market won’t become frozen just because of the surfing investors. I am optimistic about the market,” he said. “I believe big investors won’t run away from the market because they have long-term visions.”
According to Le Hoang Chau, chair of the HCMC Real Estate Association, delaying the ratification of the SEZ bill is a reasonable decision as it helps cool the market, which was too hot because of transactions by surfing investors.
The speculation movement pushed the land prices up. But high prices of land will discourage investors.
Vo said that even in the worst case, if the National Assembly rejects the SEZ Bill, Phu Quoc, Van Don and Van Phong will still be attractive markets thanks to their geographical positions and favorable natural conditions.