Tue. Dec 12th, 2023

VietNamNet Bridge – Foreign consultancy firms all believe that the real
estate market would still be very difficult in 2013, while the prices would
continue decreasing. However, they believe that there would be more successful

Vietnam, real estate, prices, frozen market, economic recession

CBRE Vietnam believes that 2013 would be the time for a “revolution” in the real
estate market. About the prices of the apartments in Hanoi, CBRE’s experts think
that the prices would drop by another 10 percent after decreasing by 12 percent
in 2012.

A report showed that Vietnam had 55,000 operational enterprises in the real
estate sector in 2012. Of the enterprises, 17,000 took loss, while 2,637 got
dissolved. Meanwhile, CBRE thinks that the number of real estate developers and
the number of real estate investment funds would be halved in 2013 and then
halved further in 2014 before bouncing back again later.

Also according to the real estate consultant, the biggest transactions in the
office leasing market would take place in the B-class office market segment. The
actual area of offices to be leased in 2013 is believed to increase slightly in
2012 because of the recovery of the Vietnam’s and the world’s economies.

Knight Frank also thinks that the real estate market would still keep gloomy in
2013 with the apartment sale prices to drop further in the first half of the
year, if the government does not implement necessary measures to settle the
problems of the market.

Most of the transactions would be seen in the low-cost or popular market
segments – the segments which both the people with real demand for
accommodations and investors are interested in.

With a series of shopping malls to be opened in the next two years, including
Vincom Mega Mall, Trang Tien Plaza, Ciputra, Golden Palace and Lotte Center,
this is expected to change the face of the Hanoi’s retail market, thus creating
a strong competition among retail center developers.

The office market is believed to be stable in the first quarter of 2013 with few
transactions to be made by domestic and foreign companies because of the long
Tet holiday.

Savills Vietnam, while putting high hope on the measures taken by the government
to stimulate the demand, believes that the measures would only show their
effects by mid 2013.

Therefore, one should not expect too much on the recovery of the real estate
market in 2013. If the apartment prices decrease further, the sales of low cost
products, priced at less than 1-2 billion dong, would increase by 25 percent.

It is estimated that by 2015, about 860,000 square meters of office area would
be available on the market to be sourced from 62 new office projects.

Meanwhile, Cushman Wakefield believes that the measures suggested by the
government and relevant ministries are not powerful enough to give strength to
the real estate market which is in big difficulties.

It is expected that the new supplies would be available on the Hanoi market from
17 new projects. Since the supply far outstrips the demand, the price downward
would continue in 2013, while the market would be the buyers’.

Colliers International does not put high hopes on the market growth in 2013, but
it thinks the recovery can be seen in some market segments. The market would
give the opportunities to the financially powerful investors who can take full
advantage of the current price decreases to develop projects for profit later.


By vivian