Many people still remember 2009 as a year of strong economic downturn. Until 2013, the property market is still experiencing many difficulties and could not “stand” is. However, many positive signs from late 2013, early 2014 has made many people hope for a 5 year period (2009-2014) “recession – explosion” will occur.
2013 – A difficult year of Vietnam real estate
The Ministry of Construction has recently published a report on the property market in 2013, according to which: The real estate business is still owed, under pressure from the banks when there are 23,007 apartments and 12 million m2 ground has yet to be sold on the market.
An estimated 70% of business is in a declining revenue situation, high unemployment … Not only that, many investors due to funding constraints had to stop accepting or transferring the project and then suffered complaints, customer complaints.
However, real estate in the past year also highlighted, as liquidity has improved markedly. Real estate sector ranked second in attracting foreign investment FDI, accounting for approximately 4% of the total capital investment.
QE3 and the impact of cyclical economic
At 1/2014 QE3 cut package that the U.S. Federal Reserve (Fed) launched officially in effect. Accordingly, the Fed will cut the size of the bond purchase program $ 10 billion less each month was $ 75 billion. That means reduced fiscal policy, the stock market and real estate open more investment opportunities and promised the U.S. economy will recover.
Once the economy-America world leader back of strong growth, the development of the national economy in the world in which Vietnam would be all yeu.Tinh economic cycle will re-back operation.
According to Tran Viet Duoc, Director of Danaland: “real estate market as well as Vietnam’s world is cyclical” boom – recession “. Domestic economic recession began in 2009, then in 2014 the market will certainly gradually recovered and developed by a market cycle usually lasts 5 years”.
The positive sign for the property market in 2014
In 2014, many policies directly impact land and housing development, as well as for the benefit of customers and investors will be effective. Land Law (Revised) officially take effect from 07.01.2014, which will have many new features in land acquisition, land valuation, land-use planning. The Ministry of Finance also allows people to self-determination of the personal income tax when the property transfer has created a new impetus to this market.
Along with the implementation of the package of 30,000 billion loan for low-income people buy, rent, late May 11/2013, the Government issued Decree 188/CP of social housing development with many notable content in favor of low -income and owns social housing.
Accordingly, instead of being sold and leased back after 10 years, the purchase of social housing will be transferred after 5 years of use, from the time of signing the contract with the investor. Even in 5 years time, if need be transferred, the people can still sell to the state, the investor or the subjects of social housing to be purchased as prescribed.
These policies are considered to be hinged on to the investors as well as people believe in a real estate market boom in 2014 much of this.