Problems ahead for Vietnam's housing market?

As Vietnam's economy has grown, so has its property market. The country is experiencing a real estate boom at present.  But experts are wary of a number of weaknesses in the system that might bring the market down, incuding the following:

• Spiralling, unregulated property prices. Rising construction costs further drive up residential real estate prices that often even exceed the actual value of the property. There is a shortage of housing projects that are  suitable to the average income.
• Slow construction and completion of development projects.
• Lack of a comprehensive policy that regulates the market; corporations, banks and individuals have formed real estate trading groups among themselves, and many of these lack capability, experience or an adequate level of service.
• Heavy dependence on banks which offer some of the highest lending rates in the world. These high rates, plus burdensome loan application procedures, have made it hard for prospective home buyers to get loans and have even dissuaded foreign inverstors.
• An unreliable housing and real estate information database that does not provide good data regarding ownership and other housing issues. Another problem is that the management of the real estate market does not fall to one body but to several government departments, leading to inconsistency in policies and lack of proper procedures.

Source

Comments

Be the first to comment on this article!