Following the tough year of 2011, Knight Frank is cautiously optimistic about the property market in 2012, pointing out a number of key indicators that will have a positive effect on the market.
Remarkably, the State Bank of Vietnam (SBV) has just decided to reduce key policy rates by 1 percent, and inflation has been on a downward trend for some months and is set to stabilize in 2012.
The stock market has been one of the world's top performing equity markets so far in 2012. The benchmark index for the main bourse, the Ho Chi Minh City Stock Exchange, has seen growth in excess of 20 percent so far this year.
Due to a downturn in the market over the past two years, Knight Frank believes there is a huge amount of pent up demand for real estate, in addition, the number of international investors contacting Knight Frank has risen dramatically over the past 6 months. For these companies Vietnam is on the radar, alongside China and India.
Investors will have an opportunity to purchase assets in all sectors for prices considerably lower than two years ago and with a large number of developers with deep financial burdens keen to offload their assets, therefore, we anticipate 2012 will see increased activity.
Stephen Wyatt, Country Manager for Knight Frank Vietnam commented, “The difficulty for most investors is timing, predicting the future trend of the market and knowing that they are not buying at the “top” of the cycle. As with any property investment anywhere in the world, the key is location and understanding the market. There is no question that Vietnam still offers huge upside for any investor over the medium to long term. We are seeing strong demand for many investments, land and development sites we are currently selling. With renewed optimism and a return of confidence, 2012 is the time to start looking at investing in Vietnam.”
Knight Frank LLP is the leading independent global property consultancy, headquartered in London. The presence of Knight Frank in Vietnam has enhanced its strong network in the Asia Pacific Region. The company currently employs over a hundred people with vast property experience in Vietnam and throughout the world.
Nam Pham
Vietnamese
