Mar 28, 2011. It has been predicted that the local property market will repeat its downturn of 2008, when the market witnessed a sharp fall in selling prices in some regions around the country.
Although prices were slashed from 40% to 50%, trade activities remained slow. The market outlook is a problem which many property experts discussed in a seminar themed ‘What to do with the local property market in 2011’ organized recently by the Hanoi Property Club.
Vu Dinh Anh, an expert in market and pricing, estimated that the local property market would lose some US$5 billion credit this year given the Government’s credit tightening policy in property sector, from the current 23% to 16% late this year.
Professor Dang Hung Vo, former deputy minister of Natural Resources and Environment, projected that this year would be a challenging year for most financial investors because most products have been soaring and the shadow of inflation is set to return. To tame inflation, the Government is squeezing the credit faucet to channels of the property, gold and foreign currency sectors.
“As the result, the property market will face a severe shortage in capital this year,” Vo said.