Condotel legal is no longer an obstacle to investors

CafeLand - The resort real estate market in 2018 recorded a decline in liquidity, with the cause attributed to the legal corridor for this type is unclear. However, in 2019, consumers will pay more attention to early efficiency.

That is the judgment of Mr. Nguyen Van Dinh, Vice Chairman of Vietnam Real Estate Brokerage Association (VARS) when talking to CafeLand about real estate situation in 2018, forecast 2019.

High-end segment will be promoted

Reporter: The 2018 real estate market has closed with relatively positive parameters. According to him, is this situation maintained in 2019?

Mr. Nguyen Van Dinh: In 2019, Vietnam real estate market will continue the momentum of 2018, but will face some difficulties. Specifically, the Government is now advocating and in the process of reviewing the process of land allocation and land use, especially on public land. This may create an impact on real estate supply.

However, I think that this move of the Government will also make the market healthier, avoiding risks for consumers because then, when the goods are released, they must ensure transparency, right goals and benefits. benefits of the whole society.

Credit flowing into real estate will also be tightened, which is also a difficulty for weak capital enterprises. However, there will not be much impact on the real estate market by the project developers themselves, especially the well-known developers, strong financial potential, the dependence on the bank's capital. These units are no longer available.

Mr. Nguyen Van Dinh, Vice Chairman of Vietnam Real Estate Brokerage Association (VARS).

In the field of attracting FDI into real estate, in 2018 we recorded a significant proportion, about 7 billion US dollars in the real estate market. This number will continue to grow well in 2019, creating more resources for the market.

Besides, Vietnam's economic development in 2019 is committed by the Government. Therefore, we can absolutely trust that the demand for real estate will be good. The market will develop evenly across the country, localities with strong investment in economic development, industry and services will create a boom for the real estate market on a large scale. We can expect more impressive numbers in 2019.

The VARS report shows that the supply of luxury apartments in 2018 is making up a large part of the market. Does this create concern about the oversupply of this segment when real demand is still on the affordable segment?

I do not think that. High-end segment in the markets, in which Hanoi and Ho Chi Minh City have appropriate proportion. This is the product of recent choice, showing the wealth of a part of the population and especially, when the market with the participation of foreign investors in Vietnam will appear. more on target groups who need to use high quality housing system, and high-end product lines will be selected by this object first. Therefore, the return of high-end segment in 2018 will continue to be the trend of choice in 2019, and this is actually the consumption demand of high-income people.

So how do you assess the current development of the middle and low-end segments?

The mid-end segment is seeing better investment, higher quality, better services for people with good incomes. In recent years, the number of people with good incomes, especially in big cities in Vietnam has increased. Therefore, the demand for good quality service houses of the majority of civil servants and business people is increasing. In my opinion, it is the essential product line, besides affordable housing, social housing for difficult people, are products that cannot be without.

Coastal real estate will continue to grow

2018 also recognized the development of the coastal real estate market, the neighboring provinces of Hanoi and Ho Chi Minh City. According to him, is this the trend in 2019 and to develop, what areas should they invest?

Coastal real estate in recent years has recorded a boom when there is direct investment from investment activities of provinces and FDI enterprises. I think that this trend is also consistent with the policy and situation of economic development in Vietnam in recent years and will be maintained in the future.

Casino product line will attract investors.

However, in order to develop in the right direction and maintain that development in the following years, first of all, in the localities with the policy of economic development, investors must be welcomed, especially the first ones. create jobs locally.

For example, the development of IPs, especially IPs of foreign investors, will inevitably lead to the demand for housing and services, which will boost the development of the local real estate market. In other words, the real estate market in the coastal areas wants to develop need the right development, effort and development plan of the locality.

For investors, real estate developers who are involved in the local market need to grasp that plan and conduct and investigate, consider, and carefully before making the lines. products for each segment, avoiding movement style, massively, uncomplicated because it will create inappropriate products, leading to the risk of excess supply, creating inventory. At that time, the project development will go against the economic efficiency, investment purpose.

Casino will attract investors

The resort real estate market, including condotel, recorded a slowdown in 2018, but the fourth quarter saw a recovery when investor confidence gradually improved. In 2019, how will this segment evolve?

Currently, the tourism economy in Vietnam is enjoying achievements with impressive growth, with an average growth rate of 20% per year in the tourism industry. This is the driving force to create confidence for investors in the resort real estate market, because creating a resort market is to create infrastructure and services to be ready to welcome more and more customers. domestic and foreign tourism. It can be said that resort real estate is now a trend that must be developed in areas with tourism potential. Therefore, I think it is an opportunity for investors and they have seen real development numbers so they have confidence to invest in this segment

Besides, because Vietnam is a country with advantages and opportunities for tourism development in the best group in the world, it is sure to create confidence and promote investment activities of small investors. Successful transactions in 2019 on resort real estate products will exceed 2018 by over 50%.

Legal for resort real estate in general, condotel type in particular is still a "eternal" story. According to him, does this issue affect investor sentiment in 2019?

The legal story for condotel is interested in, starting from the psychology of possessing the "land of the horns" of Vietnamese people. However, for international, in investment activities, especially real estate investment, people pay more attention to investment efficiency, at any project, in which area, who is the investor and the unit? Which manages operation ...

In countries, when investment is defined as a shareholder and primarily concerned with the profits they enjoy when participating. In Vietnam, we have a habit, culture must be possessed, certainly. But now, we also see that the concept with Vietnamese investors has decreased. Instead, they pay more attention to business performance, focusing more on the specific plans, strategies and objects of the project. Therefore, real estate projects with brand name, prestige, strong potential and are operated by reputable units in the world always attract customers' concentration. That will be the trend of 2019.

In addition to traditional recreational and recreational real estate products, a new type is also receiving interest as a casino. Currently in Vietnam there are also a few places to develop this type. How do you assess the potential of casino products in the future?

Casino is a special investment product. In Vietnam, there are not many, but the world has appeared for a long time and has a strong need for use. An area with international standard casino will attract many international visitors, especially those who love this subject.

In Vietnam, this model is being invested in Phu Quoc, the land has many advantages in climate, landscape and tourism infrastructure. When having this special product line, it will surely attract international visitors, especially the group of wealthy customers, stimulating strong consumer demand during this group of guests staying here, bringing economic efficiency. High for the area.

Thank you!

Tam A