Vietnam Real Estate Market Staying Positive

However, the market has recently shown positive signs of recovery and protential high growth rates, particularly in urban areas, helping property developer overcome a difficult period and grown again.
Besides a $ 1 billion stimulus package to provide businesses with an interest rate subsidy, the government has also raised  its level of  investment for constructing schools and traffic infrastructure. Moreover, $223 million of the national budget has been devoted to satisfying 60 per cent of student’s demand and for accommodation by 2015 in accordince with the Decree 65/2009 QD-TTg.
The government has issued preferantial policies on rent, tax and credit support to encourage private sector to invest constructing social housing for worker and low-income earners people. The banking sector has returned to support property enterprises by creating more new home loans for low income people.
In addition, permitting foreigners to buy houses in Vietnam and allowing an inceasing  number of overseas Vietnamese people to own housing have also contributes to the recovery of Vietnam property market.
The commercial property market is now ” hot” again thanks to the active participation of thousands of domestic enterprises and the dramatic increase of foreign investment. According to the Ministry of Planning and Investment (MPI) since the beginning of the year, more than 50 per cent of foreign direct investment lFDl) has been channelled into property market. Many large FDI projects are under construction. There is a trend of foreign investment seeking ways to join the market that has led to the formation of  some new property investment funds.
In the next few years, Vietnam’s property market will dramatically grow because of an overall opti mistic economic situation aided by a bright stock market and five per cent G DP target for 2009.
In the mid- to long-term, several segments of the property market will show dramatically growth. Firstly, the rapid urbanisation will lead to soaring construction and trading in the residential market especially in new urban areas. That is the key to the development of Vietnam's property market in the next years.
Secondly, the industrial property market  will rapidly develop after master plan of economic and industrial zones towards 2020 is fully regulated and supplemented.
Thirdly, the commercial housing market, particularly tourism properties, expected to expand as developers exploit the country’s long, beautiful coastline and landscapes. However, there should be a detailed master plan for tourism property development inorder to take advantage of the country’s strategic geographical and economic position in the international market.
Fourthly, residential market for low income earners, workers and students will continue to enjoy government support. The development of social housing projects will contribute to social stability and the sustainability of the real estate market.
To develop all of the abcve segtuments, a lot needs to be done. First of all, administrative procedures need to be simplified in order to remove obstacles investors might encounter in developing their projects. The banking sector should be encouraged to help more credit enter the market. Developers must also endeavour to finish all registered projects
In the mid - to long - term, it is vital to form legal frameworks for financial enterprises and institutions to take part in the property market. First of all, there should be studies of a Dilot scheme for establishing savings funds that will be used for housing develop- ment, as well as a real estate re-mortgage system and real estate investment trusts.
Capital must be mobilised from all economic sectors, especially FDI enterprises, and invested into segments such as tourism property and condos which need large investment capital and professional management.
Available land must be reserved and an explicit legal system must be built to attract the above investment capital as soon as countries overcome the global crisis.
There should be thorough forecasts of property market indexes such as rental and property price indexes.
In the long-term, the government and provincial authorities should plan and construct new modern urban areas synchronously. To date, existing townships have been built in densely populated areas. so there is no symmetry between infrastructure, architecture and scenery. To construct a complete and innovative township, the government should actively take part into setting a concrete master plan and establish a large potential economic group to develop infrastructure in tandem with mega - property protects.
In conclusion, the Vietnamese prop- erty market has shown positive signs as the country is coming out of a difficult perior thanks to the government's stimulus package. The real estate market in the coming time should be developed sustainably and in close relation with macro-economic stability.