REAL ESTATE MARKET IN A NEW RACE

Recently, a series of real estate projects have been launched onto the market. In June, the Green Land Group is prepared to launch the Five Star Garden project in Thanh Xuan district, Hanoi in phase 2 at expected price of around VND21.5 million per m2. This is one of the projects that is attracting huge interest from the investors by its beautiful location and low construction density; the project is located on Vuong Thua Vu street and its building density is 39 percent.
 
Earlier, the condo project of Kim Van-Kim Lu Building C (Golden Central Tower) was launched on the market; investor Vinaconex 2 is opening for public sales and 50 first customers will get a shopping giftcard of VND10 million at Big C. The project is located on Nguyen Xien street (Hoang Mai district) and the building is equipped with a uniform infrastructure. Customers of this project will be supported 70 percent of loans at preferential lending rates. In addition, some apartments with smaller areas will get lending credit support package of VND30 trillion with an interest rate of 5 percent per year.
 
The warming of the property market has become a driving force for investors, which lead to more opportunities in the near future. Recently, not only domestic investors but many foreign investors have come back to the real estate market of Vietnam. According to the latest figures released by the Foreign Investment Agency of Ministry of Planning and Investment, as of May 20, 2015, there were 592 new projects granted investment certificates in all fields, with total registered capital of US$2.95 billion, an increase of 80.6 percent over the same period of 2014. Besides, there were 210 projects registered to increase investment with total registered capital of US$1.34 billion, an increase of 72.9 percent over the same period in 2014. Thus, in the first 5 months of 2015, the total newly registered capital and additional capital reached US$4.9 billion, an increase of 78 percent over the same period last year.
 
According to the report by Foreign Investment Agency, in the past 5 months, the reimbursement of the FDI projects is estimated at US$4.95 billion, up 7.6 percent over the same period of 2014. This is a significant increase of cash flow pumped into the market. Currently, the real estate sector is ranked second only to the processing and manufacturing sector in attracting the most FDI investment.
 
Many experts also note that in the coming time the real estate market will receive a number of apartments, along with a system of high-end villas that are being invested by a lot of investors nationwide. According to Nguyen Van Dinh, General Secretary of the Vietnam Association of Property Brokers, this is a good sign of the real estate market, which is opening up opportunities for home buyers, especially foreigners who wish to buy houses in Vietnam.
 
Currently, many big names in real estate like Vingroup, FLC Group,and Novaland are implementing sizeable property projects and running professional campaigns. Optimistically, Novaland shared that they aim to sell 4,000 units this year.
 
Reviewing the real estate market in the near future, experts said that the market will continue to prosper and opportunities for investors are still very large; but different from the previous times, the property market in 2015 exposes differentiation and high competition for a new race.

Source: VCCI