Vietnam for the first time topped the list of best countries for investment in real estate, which produced the American Association of Foreign Investors in Real Estate (AFIRE). However, while investment advantages that the Asian market offset a lot of shortcomings.
AFIRE in its survey gathered the views of investors and developers, whose total investments in real estate amounted to $ 627 billion of respondents are convinced that, despite the initial stage of the real estate market of Vietnam, he provides plenty of opportunities for investment. The country's economy is continuously growing, growing middle class, improving the laws.
Investment in Vietnam Property promise high returns, but the risk to investors is still, experts warn. Prices can go down sharply due to oversaturation of the market housing. Vietnam (especially in Ho Chi Minh City) is observed oversupply of housing, driven by speculators, reports Asia Property Report, with reference to a report consulting firm CB Richard Ellis.
In its forecast for the 2011th year specialists CB Richard Ellis warned: many developers in Vietnam owned stock purchased before the objects and still adhere to them. This is especially true of apartments (condominiums). In 2010, their number has doubled compared to last year and exceeded 20 thousand items. This year, developers (both local and foreign), conceived to launch 79 new projects that will increase the number of condominiums in Ho Chi Minh City to 120 thousand.
Such conduct developers market reacts temporary lull. Strategy for buyers in Vietnam can now be characterized by the words "watch and wait." In particular, investors are waiting for lower prices and interest rates. Because of this, last year the volume of investments in the secondary market in Viet Nam fell by 20% and is expected to continue to fall in 2011.
While investors worried about a possible oversupply and falling prices, many residents have difficulty buying a house. Although housing in the country is becoming more, many citizens can not afford it. The reason for this high percentage of loans - 18-20% per annum. So while the developers are still betting on a growing middle class and affluent buyers.