Business News

Real estate transactions slowed down in February because of the Lunar New Year holidays, the construction ministry’s Management Agency for Housing and Real Estate Market has said.

According to the research results of Jones Lang LaSalle Incorporated (JLL), a professional services and investment management company specialising in real estate, although the global economy has not prospered, Southeast Asia still remains a bright spot for investors. Accordingly, ASEAN economic growth remains at 5 per cent per year, which is quite high compared to the global average growth of 3.5 per cent per year. This is creating a huge advantage for developing countries like Vietnam, particularly in the real estate sector.

In the first two months of 2017, the Vietnamese real estate market has not experienced major changes. It even witnessed a slight decline in deals from late 2016. The market development has fuelled investors with anxiety because many specialists have warned against potential hardships in 2017.

According to statistics of the Foreign Investment Agency (FIA), Ministry of Planning and Investment of Vietnam, in January 2017, the country attracted US$1.4 billion of foreign direct investment (FDI), of which the real estate industry attracted US$297 million (21.2 per cent of the total FDI), ranking 2nd only to the processing and manufacturing industry.

The property market is booming in the southern province of Dong Nai of thanks to its excellent infrastructure. The local Department of Construction said 250 property projects were developed recently, 15 by foreign investors and involving a minimum investment of US$10 million.

Problems in planning and large gaps between land prices and incomes will pose challenges for the property market over the next few years, experts said. According to President of the Viet Nam Real Estate Association Nguyen Tran Nam, housing prices are still far beyond the incomes of a majority of residents.

[18-01-2017] In 2017, the real estate market is forecast to stage continued positive performance. Vacation property, midsize apartment and affordable housing segments for low-income earners will be hot picks on the market. Development opportunities of the property market will become clearer in 2017.

[17-01-2017] Da Nang City will establish four new industrial parks (IPs) by 2020, Ho Ky Minh, deputy chairman of the municipal People’s Committee, said. Minh said the committee had asked the city’s Department of Industry and Trade (DoIT) in collaboration with relevant agencies to speedily implement procedures to submit the establishment plan of the four IPs to the Government.