Buildings and property projects around My Dinh - Cau Dien in Ha Noi City. — Photo enternews.vn

Viet Nam News -HÀ NỘI – The domestic property market this year would see “hot” development as Việt Nam would be one of five best prospective markets in the Asian region, experts said.

Marc Townsend, CBRE Việt Nam Director told the “Real Estate Conference 2016: New Hopes, New Challenges” held in Hà Nội yesterday that the country’s real estate market had gradually recovered from the global financial crisis in 2008.

He said that selling prices of high end apartments in Hà Nội and HCM City would see strong growth amid increasing land prices.

CBRE forecast that the two big cities would see development in urban areas. The middle housing segment would dominate the market with average price of VNĐ1 billion (US$44,984).

In the year 2016, the office segment would be the main target. Hà Nội and HCM City would still draw attention and attract foreign direct investment when Trans-Pacific Partnership (TPP) comes into effect.

He also added that the resort segment would be crowded as Việt Nam had emerged as one of the new destinations for resort development while industrial real estate was also expected to strongly develop when multinational groups expand their operations in Việt Nam to take advantage of the TPP.

Việt Nam should increase transparency in approving projects and tighten management to attract more investors, he added.

Sharing the ideas, Nguyễn Đức Thành, director of the Việt Nam Institute for Economic and Policy Research, said that the property market had been promoted by several positive macroeconomics factors. The Law on Housing 2014 and Real Estate Trading Law 2014 had provided loose policies to spur the market’s development.

“In addition, effect of the TPP would ensure higher FDI inflows into Việt Nam, of which a major part would enter the estate market. The stable economic growth and increasing savings among residents would be an opportunity for the market to receive a big investment from home buyers and investors,” Thành said.

He said the housing prices in Hà Nội and HCM City would be cheaper than countries such as China and Singapore. The estate market therefore would still have potential for further development.

“Bubbles in the property market will not be seen at the moment,” he said.

Vũ Văn Phấn, head of the Ministry of Construction’s Housing and Real Estate Market Management Department, said the market would maintain its stable development and slight growth rate.

Phấn said Decree 36 would reduce shortcomings for more healthy development but not tighten credit in the market.

“Moreover, the Law on Real Estate Trading is already in effect for the year. We have to welcome opinions to better support property developers,” he added. – VNS