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Vietnam real estate market 2015 will flourish

Wed, 24 Dec 2014. Last updated Thu, 25 Jun 2015 08:57

In a workshop on a subject of "Forecasting Vietnam real estate market in 2015" held in Hanoi and Ho Chi Minh City in this month, real estate experts predicted that according to Housing Development Strategy 2020, Vietnam real estate 2015 will flourish.

Growing housing demands, especially affordable housings

Condominium CT3 Co Nhue

 

It is predicted that cheap and affordable housing segment is still the highlight of Vietnam real estate market in 2015. Housing demand and supply for this segment will continue increasing. Especially, real estate credit will be given priority for this segment. Forecast figure in Housing Development Strategy 2020 indicates that the rate of urbanization will increase from 31% to 45% in 2025, thereby, the housing demand of current 30 million people will grow up to 45 million people in 2025. In the next 10 years, real estate market in Vietnam still has a lot of potential for development. According to Housing Development Strategy in 2020 with Vision 2030, the housing demand is still significantly growing while the supply in the market is inadequate. The total floor space of housings must to increase additional 429 million square meters in a period of 2009 - 2015. The supply quantity of the real estate market in 2015 is approximately 461,767,028 square meters of the housing floor space (82,450,000 m2 for Hanoi Capital and 79,360,900m2 for Ho Chi Minh City).

 

Many opportunities for development

goldmark city in future

 

The growth rate of GDP in 2015 is expected to reach 6.2% Vietnam National Assembly sets the target that CPI 2015 will not exceed 5%. If the CPI remains at the low level, State Bank of Vietnam (SBV) continue lowering the interest rate ceiling from the current level of 5.5% to provide a basis for further reducing interest rates and helping businesses to reduce capital expenditure and increase credit growth. If the CPI in 2015 stands at 4%, the interest rate ceiling will be pulled down at least 5% and still maintain positive real interest rate of 1%. With regard to the supply of credit, Mr. Nguyen Tri Hieu, banking and financial expert forecasts the overall credit and the real estate Vietnam credit will substantially grow by 10% and 20% respectively.

 

Innovation policies will create favorable conditions for Vietnam real estate market

Times City Hanoi

 

Mr. Nguyen Manh Ha, Director of Housing and Real Estate Market Management stated that Housing Law and Real Estate Law 2014 will will create favorable legal basis for the positive development of Vietnam real estate market in 2015. Real Estate Law 2014, which was announced on December 11th, 2014, may affect the real estate market in 2015 in some aspects such as accelerating the restructuring of Vietnam real estate market to become more professional, strictly managing risks, attracting greater investments, and achieving greater efficiency. 

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