Vietnam REAL ESTATE and new development directions

25 Nov

Real estate industry is one of the key economic sectors of a country, so its ups and downs certainly have a big influence on the country general economy.

In recent years, real estate industry has been stagnated. Even in two major cities Hanoi and Ho Chi Minh, many large office buildings have remained unrented; In 2012, Investors mostly focused on segment of low-cost apartments, yet this market was still slow.

Due to the economic crisis, housing price remains at high levels with complications, and becomes hard to control. Additionally, property structure is not balanced, density of tenements has currently occupied only about 4% of  the number of houses in towns. Real estate financial system is not yet completed, almost dependent on monetary policy and credit. Also, speculation phenomenon becomes quite popular, destabilizing the market. Moreover, implementation of  real estate projects is still slow, worrying people.

In big cities such as Hanoi, Ho Chi Minh, Da Nang, and other  southeast  provinces etc., real estate price has been falling the past 3 years now, there was a time when the price fell down to 40-50%, which created many disadvantages to investors. Moreover, bank interest rates are rising while loan is limited, leading businesses to suffer losses. According to statistics, in the year 2010, the country constructed approximately 85 million square meters of housing, but only about 30% of invested capital was from businesses, the rest 70% was from people. It shows that demands for shelters, including offices, hotels, commercial services in all localities are very high, yet the turmoil in real estate transaction recently has broken out many risks.

Facing with constraints of domestic real estate industry, many solutions are in place to rescue the industry, among them, investors are particularly interested in a new investment model: using EBS block (Expandable Building System block ) instead of  traditional building, for these features : fast construction time (saving about half of the time compared to building a conventional one); fewer workers in the process of docking; attractive designs. Especially, the home is installed mechanical parts inside, enabling it to expand or fold up easily with only a few simple steps of operation.
Using the EBS block opens  a new and efficient way for the real estate industry.

Population is increasing, housing demand is always essential, but with the current economic situation, the falling of house price is still too high compared to people’s income, owning a home or office becomes a dream. Thus, finding a new way of housing investment with more affordable prices is not only  a solution to save the investors themselves but also a step towards helping domestic real estate industry  resolve existing difficulties.

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Posted by on November 25, 2013 in Uncategorized


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