Real estate most popular for investors

Jul 25th at 10:08
25-07-2017 10:08:14+07:00

Real estate most popular for investors

Real estate has become the most popular asset class among retail investors since gold and foreign currencies are not very profitable any more.

 

Minh Hanh of HCM City’s Tan Phu District, for instance, said: “I never put my money into saving accounts because I used to invest in gold and dollars. But now I invest my money in real estate and stocks because gold prices have decreased sharply and the gap between domestic and international prices is too big.”

Since 2010, gold has plateaued.

The Government has tightened gold management and banks are not allowed to mobilise or borrow gold any more.

This year, the real estate market has gathered pace and been a magnet for investors.

Duc Vinh of HCM City’s Go Vap District said last October he had bought a piece of land for VND2.6 billion ($115,000) and planned to build a house. But half a year later, a buyer offered VND3.5 billion ($155,000) for it and he sold it immediately.

But Vinh’s profit is not considered huge in the current market situation.

Hoang An, a broker in District 12, said now everybody wants to buy land because of high profits and liquidity.

Things have turned on their head from a few years ago when prices were low yet it was difficult to sell land.

“Bank savings interest rates are very low, gold and dollars do not yield high returns and investors are looking for better investment opportunities,” An said.

“Inflation has been controlled well in recent years and buying gold as a hedge has reduced.”

Nguyen Hoang Minh, deputy director of the State Bank of Viet Nam’s HCM City branch, said the loans given to the property sector in the city are worth VND238 trillion ($10.6 billion) or 10.8 per cent of the total.

The HCM City Real Estate Association reported that in the fist six months of this year lending to the sector increased by 6.35 per cent, 1.35 percentage points higher than in the same period last year.

Real estate firms accounted for a full third of the 18,000 companies established in the city in the first six months of this year.

bizhub



NEWS SAME CATEGORY

US property purchases on shaky legal grounds

According to experts, the estimated $3 billion spent by Vietnamese people to purchase US residential property could have been transferred largely through...

Real estate conglomerates vie for Hanoi railway projects

Real estate developers are seeking land plots in the suburbs, especially in areas with good infrastructure development, as available space in the inner city is...

Investors warned about oversupply of condotels

The supply of condotels has been soaring in the last few years and investors have been advised to think carefully before pouring money into the market segment.

Selling price of social housing may rise

Social housing is expected to get more expensive soon as investors have not received preferential interest rates for loans, experts have said.

Numerous violations found in FLC’s million-dollar projects

Dozens of construction components in two resort projects developed by FLC Group have been put into operation without the necessary permits or quality inspection.

Developer, authorities found responsible for multiple violations at resort projects in Vietnam

A series of violations have been detected at two major resorts in central Vietnam, exposing the responsibility of the project developer and local authorities.

Meada to develop high-end property project in Ho Chi Minh City

Japanese developer Meada Group has recently expanded its portfolio in Vietnam by partnering up with domestic Thien Duc Company to build Waterina Suites, a high-end...

VN among top ten US home buyers

Viet Nam is among the top ten countries buying US residential real estate, according to an annual survey of residential purchases from international buyers released...

VN property market looks to up transparency

The Vietnamese property market must improve market information transparency to attract investment and develop sustainability, experts said.

Vietnam cities garner heightened interest of hospitality investors

Hospitality and hotel investment in the Asia Pacific region for the first half of 2017 hit US$2.9 billion, with investors zoomed in on key gateway cities in Vietnam...

Real estate stocks

Construction stocks


MOST READ


Back To Top