Foreign investors confident in local property market
Whilst local realty firms are struggling to sell their products, foreign investors find themselves confident in Vietnam's property market regardless of the tough times that will likely extend into the whole next year.
Peter Ryder, CEO of Indochina Capital, stated the challenges for local property enterprises are the opportunities for foreign investors to develop further.
At a recent press conference, Ryder said supply has exceeded demand in all segments of the local property market. Still, the purchasing power remained strong.
The key problem is the competitiveness of the project. TSTC with good locations, designs and prices can attract buyers even in tough, he said.
Citing Indochina Land as an example, the subsidiary company of Indochina Capital operating in property investment and business recorded the total sales revenue of $250 million in the past five years. In 2011 alone, the revenue is over $40 million.
Therefore, despite the local property market slowdown with strong decline in revenue, Indochina Land maintained its selling power on the market, especially in Hanoi. In particular, 280 of the total 386 apartments in the project Indochina Plaza Hanoi have been sold.
Other projects of Indochina Land in the central and southern regions also recorded satisfactory sales volume. These include the Hyatt Regency Danang Resort and Spa along with the villa section Estates of the golf course Montgomerie Links in Danang City and Six Senses Con Dao Resort in Con Dao Island.
Sharing the view, Chair Park Chun Seon of Inpyung Vietnam confidently said that after the slowdown would definitely come the development period. The member company of South Korea's Inpyung Group is the developer of the apartment complex project Daewoo Cleve in Van Phu Urban Area in Hanoi.
At present, apartment building is the best solution to provide accommodation for the rising population in Hanoi. This is the evidence that the market would soon warm up, said Park.
Owner of Daewoo Cleve project has recently decided on the specific time to finalise sample apartments and start offering. "Whereas many property projects in Hanoi are suspended for the lack of capital, we commit to complete our project on schedule with advanced technology," said the project owner.
Indochina Capital said despite the gloomy market in Vietnam, HCM City and Hanoi would remain the most vigorous areas in the next 15-20 years.
The Saigon Times Daily - December 21, 2011