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Right time to buy property: experts

Update: November, 05/2014 - 08:07

TImes City. Now is a good time to purchase property because of various promotional programmes that favour buyers and investors. — Photo Doan Tan

HA NOI (VNS) — Now is a good time to purchase property because of various promotional programmes that favour buyers and investors, according to experts.

This was the consensus reached at a seminar on the property market that BizLIVE online newspaper held here yesterday.

Can Van Luc, financial expert and director of BIDV Staff Training School, said: "Investors and buyers have recognised that now is a reasonable time for trading in property products because of the 30 to 40 per cent discount in the selling price of apartments, as well as the reduction in the size of apartments for sale."

Vu Cuong Quyet, general director of the Greenland Service and Real Estate Joint Stock Company, revealed the results of his company's survey of customers from 2011 to 2014.

The survey showed that 76 per cent of respondents wanted to buy a house or apartment in 2012 and 2013. The percentage was 70 per cent in the first nine months of this year, indicating that demand for property remains high.

Quyet noted that the macro-economic situation in Viet Nam this year had improved and bad debts at banks were reduced while financial and stock markets witnessed stable development, with a growth rate of 10 to 15 per cent now compared with that of early this year.

Interest rates for loans set at nine to 12 per cent provide positive support for the property market in the future, Quyet said. The price of the property market is low now and the price here stands at a rate offered five to six years ago, he added.

Meanwhile, demand on property products here has increased because of a surge in emigrants. He predicted the development of the property market here to further improve in the future but suggested that investors pay attention to market supply to avoid any sharp and sudden increase in selling prices.

Dang Hung Vo, senior property expert, said investors should not think of increasing prices at a time of increasing demand. Offers should remain transparent because if the people have no confidence in investors, the number of property purchases will fall, he added.

The State should have a forecast office and the property association should have a market forecast centre to provide updated and transparent property market information to the people.

To ensure sustainable development of the property market, Vo and Luc suggested that the State set up a general department specialising in property, as well as a property forecast centre.

Luc added that the State should set up a legal system for the domestic property market to create favourable conditions for the development of that market.

He cited the need for legal documents providing guidance on the implementation of laws which should be issued immediately after and not one year after the laws take effect.

On the financial market for the property industry, Luc said a trust fund for investors similar to that of Singapore and Japan should be created.

Nguyen Huu Cuong, chairman of the Ha Noi Real Estate Club, lauded the State's VND30-trillion stimulus package which, he said, helped to save the domestic property market, though now, disbursement of the package has become slow. — VNS

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