Will Vietnam blow a property bubble in 2017?
Will Vietnam blow a property bubble in 2017?
A critical year ahead for Vietnamese real estate
A real estate bubble is set to encase Vietnam in 2017, according to Dang Hung Vo, the former deputy minister of Natural Resources and Environment, as per Vietnam Investment Review.
“The real estate market bubble did not happen in 2016, but I expect the market will bubble in 2017,” said Vo.
Vo warned that the Vietnam market is marked by a large proportion of speculators, a hallmark of a bubble.
“The local authorities should have different solutions to deal with it when the prices of real estate increase and large numbers of units are in stockpile,” he said.
More: On Vietnam real estate: “There are opportunities, and the time is now”
It’s not all doom and gloom though. Vo expected the holiday home and resort segment to be a bright spot next year. Supply in the office leasing segment, on the other hand, will be well balanced by demand, unlike the retail segment, which will “face some challenges.”
Other experts have downplayed the specter of a real estate bubble with a bit of caution. “The residential market will continue to go strong from next year through 2020, but may slow down and stabilise itself to avoid a bubble,” said Marc Townsend, managing director of CBRE Vietnam. “There have been concerns about a bubble in the residential market, yet we believe this to be unlikely.”
Vietnam recorded a 12 percent year-on-year increase in real estate investment, according to Jones Lang LaSalle Asia Pacific.
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Source: Property Report