Foreign investment helps revive housing market

Liberal policies and incentives from the Government and huge foreign investment are gradually pulling the property market out of its long slump.

Phan Thanh Huy, General Director of developer Novaland, said in the first four months of 2014 his company sold some 2,300 apartments in three property projects in Ho Chi Minh City.

These include 1,600 in Sunrise City in District 7, nearly 500 in Lexington in An Phu ward, District 2, and nearly 200 in Galaxy on Nguyen Khoai street, District 4.

Huy said these projects sold well despite the stagnancy in the housing market because of their "good prices" and prime locations.

A spokesperson for National Housing Organisation Company (NHO) said the Korean company would soon invest over 20 trillion VND (950 million USD) in 14 property projects in Hanoi, Hue, Quang Ngai, Da Nang, Ho Chi Minh City, and An Giang.

NHO will invest some 4 trillion VND (188.67 million USD) in a 79ha residential complex in Ho Chi Minh City's Binh Chanh district and develop its 51ha An Phu Sinh Residential Complex in Quang Ngai into one of the best in the central region.

The NHO management has said that the 950 million USD investment will fulfill the company's commitment to the Ministry of Construction to sell some 100,000 apartments in the next decade.

Property services firm CBRE said the Vietnamese housing market is attracting the attention of foreign investors. In 2013 FDI in the sector amounted to around 1 billion USD. This year it ranks only behind the manufacturing sector in terms of investment.

The biggest foreign-invested property projects this year include a 200 million USD residential complex in Ho Chi Minh City's Binh Thanh district to be built by Sunwah Vietnam, a 2.5 billion USD resort complex in Vung Ro, Phu Yen province, by US developer Rose Rock and Vung Ro Oil and Gas Co Ltd, and the 300 million USD Alma Resort in Khanh Hoa province.

The latest report on the housing market from the construction ministry confirms that the market is rebounding with the number of properties traded in both Ho Chi Minh City and Hanoi being much higher than last year.

In Ho Chi Minh City, 1,300 transactions were reported in the first four months. Bank lending for property transactions amounted to over 266 trillion VND (12.547 billion USD).

Source: VNA

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