HANOI: Property prices are expected to increase by five to 10 per cent in the year of 2016, especially hot projects that have good infrastructure and ensure construction progress.
The Viet Nam Real Estate Association (VNREA) forecast the estate market would continue to develop, with the middle-income housing segment to be the majority segment. The villa segment is expected to see positive changes in the market as most Vietnamese homebuyers prefer independent houses rather than apartments. The prices of offices for lease will also be four to nine per cent higher than that of 2015.
However, VNREA said the property market this year would face the challenge of bad debts as most investors have to borrow loans with interest rates of more than 10 per cent a year, while the market has not been provided support from the VND30-trillion (USVND29,947 billion) stimulus package.
The number of transactions in the market in 2015 were double that of 2014. The estate inventory value fell to VND50 trillion (VND49,614 billion), while property credit rose by 20 per cent to touch more than VND373 trillion (VND370,538 billion).
