|Buildings in the Trung Hoa - Nhan Chinh urban area, west of Ha Noi. Having already hit bottom, the property market is now ripe for new investment. — VNA/VNS Photo Tuan Anh
HCM CITY (VNS)— Having already hit bottom, the property market is now ripe for new investment, chief economist Alan Pham of Vina Capital said at a Family Day event for investors and buyers recently held in HCM City.
Alan Pham, who has 30 years of experience in working in the financial market in the US, said that property cycles often lasted about six years, with three years of decline, and then a gradual upward trend.
Speaking at the event organised by Vina Dai Phuoc, a joint venture between Vina Capital and DIC Corp, Alan Pham said the property market in the US began to decline in 2008 and then had a hard landing in 2011.
Since that time, it has seen modest improvements, he said, adding that Viet Nam would see the same cyclical movement.
He said that Viet Nam's stagnant period in the property market began in 2010 and was continuing this year.
But next year, it would pick up, he added.
With such an outlook, investors should begin seriously looking at the market, Alan Pham advised.
Besides the expected upward trend next year, the Vietnamese economy is showing signs of stability after the Government took steps to control inflation and the value of the dong, he said.
In addition, the VN Index has jumped 18-20 per cent since the beginning of the year.
Property firms, including Nam Long and Tu Liem Urban Development JS Co, have begun to see price increases on the HCM City stock market as well.
"The Government has paid a lot attention to the property sector because it has a major role in increasing the country's GDP," he said.
The property sector also influences the volume of factory construction activity and the creation of jobs for labourers.
With such a key role in the economy, the Government has issued a VND30 trillion support package designed to help the property sector to get back on its feet.
Speaking at the event, Mike Gammel, general director of Vina Dai Phuoc, called for investment in the Dai Phuoc Lotus Ecological Urban Area's Sen Phuong Nam Villa project in Nhon Trach District, southern Dong Nai Province.
Eighty-five out of 332 villas have already been handed over to buyers. The villas, which measure 200-400 square metres each, cost VND10 million per sq.m.
The Sen Phuong Nam Villa project requires $64 million in capital. It includes a park, entertainment zone and sport centres, all of which are expected to be completed in July.
The project won the award for the Best Residential Development in Viet Nam at the Asia-Pacific Property Awards in Kuala Lumpur this year.
Gammel said the eco-urban area will increase in value, especially after road infrastructure projects are completed in District 9 and Nhon Trach District, as well as a road extending from the eco-urban area to the new Long Thanh airport.
The Long Thanh – Dau Giay Highway will also be completed by the end of this year, he said. — VNS