Chi tiết bài viết

Although the real estate market is not out of the woods yet, it is likely that low cost housing projects will start to heat it up in the second half this year.

Prof Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, made this forecast at a property workshop in HCM City on February 25.

He said there will be a sharp drop in the price of apartments, especially in the luxury end of the market, and the manipulation of apartments will no longer bring a big profit as it has been.

Low income earners will benefit from cheap housing projects

According to the senior specialist, the property market is entering the initial period of restructuring into a healthier, more professional and highly efficient market that will benefit low income earners.

He revealed that in a couple of years apartments will account for 80 percent of the expanded land for housing in the national housing development strategy.

Dr Le Xuan Nghia, Vice Chairman of the national Financial Supervision Committee, predicted that if the banking restructuring program is on the right track, leading interest rates will fall in the third quarter of 2012, which will help shore up the property market.

He quoted local and foreign specialists, as saying low cost housing will probably dominate the property market from now until 2020.

The market is expected to recover in 2013, and investors should proceed with their unfinished projects to seize new opportunities, said Nghia.

He reasoned that the upcoming establishment of a construction bank and a housing development fund will facilitate the mobilisation of capital for housing projects.

Housing transactions have ground to a halt over the past three years due to the economic downturn and high interest rates.