Vietnam government aims to prevent real estate bubble

The government will do its utmost to prevent a real estate bubble from inflating the way it did in 2007 as the local economy recovers from the global crisis, an official said.

“We will focus on monitoring secondary investors, especially in the high-grade housing market, because could be a decisive factor in prompting a market collapse,” said Nguyen Manh Ha, Head of the Ministry of Construction’s Department of Housing and Real Estate Market Management.

Lower prices, capital from the government stimulus and a recovering stock market have contributed to a boom in low to mid-range residential demand in Hanoi and Ho Chi Minh City, according to a CB Richard Ellis (CBRE) Vietnam report released this week.

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