The Vietnam Real Estate Association (VNREA) predicted that real estate price continue to increase in 2016

The recent foreign exchange policy moves such as U.S. dollar-Vietnam dong exchange rate adjustment, dollar deposit rate reductions and anti-hoarding of foreign currency, as well as economic growth and falling inflation will place certain impact on the property market. Therefore, citizens and enterprises might use their domestic currency funds to invest in the property market, which is considered an attractive investment vehicle at present, VNREA said in a report.

The commercial budget condo segment will continue growing but it would not steal the limelight as it depends on Government support.

This year, the property market is expected to draw more foreign investors seeking to capitalize on the revised laws on housing and property trading that came into force last year.

However, despite its recovery, the property market is still facing risks, especially of bad debt. Most realty businesses are sitting on bank loans with interest rates of over 10% per year. Besides, the market has yet to receive significant support in addition to the Government’s VND30-trillion credit package, VNREA said.

Source: Saigontimes