Encouraged by 20 percent profit, investors pour money into real estate “I have to say that profits from real estate investment is relatively high,” said Tran Ngoc Quang, secretary general of the Vietnam Real Estate Association.  The real estate sector is the brightest part in the picture of Vietnam’s economy in the first 10 months of the year, with the number of newly set up businesses during that time increasing by 93 percent and registered investment capital up by 213 percent in comparison with the same period last year. The attractive profit that investors can expect in this field was the reason behind the high number of new businesses. “Investors, after surveying the market, assume that the profit in the field is no less than 20 percent. This is why they injected money into the market,” Quang said. The profit levels vary for different projects, depending on investors’ long-term development strategies and their ways of implementing projects. The Ministry of Planning and Investment’s report confirmed that the real estate sector is leading in terms of the number of newly registered businesses and investment capital. It also shows that many investors in other business fields have jumped on the bandwagon.
Commenting about ‘amateur’ investors, Quang said this was the right of businesses to determine which business fields they invest in. He went on to say that professional real estate developers, who always follow strict rules to ensure the high quality of products and customer care services, can bring bigger benefits to customers. Meanwhile, since amateur developers try to grab certain opportunities to make money, they don’t think they need to gather all necessary resources to fulfill the commitments they make. Local newspapers have reported that the domestic real estate market is heating up in the last months of the year. Zing cited a report of CBRE Vietnam, a real estate service provider, as saying that the number of transactions in October increased by 17 percent. In Hanoi, there were 1,300 transactions reported, an increase of 18.2 percent compared with the month before. Many projects kicked off during that time, while some completed projects were put on sale in the districts of Cau Giay, Bac Tu Liem and Nam Tu Liem. In HCM City, there were 1,225 transactions, up by 16.7 percent. The supply has become more abundant with apartments of large-scale projects in districts 2, 7 and Binh Thanh. By October 20, the total inventory value had decreased to VND32.709 trillion, a decrease of 35.72 percent compared with December 2015. Kim Chi, VNN |
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