The State Bank of Vietnam 's tightening of monetary policies willbenefit powerful foreign real estate investors and hamper local firms,according to property market analysts.
SBV and Governmentefforts to curb inflation since February this year, have made itdifficult for real estate developers to access credit, leading to adecline in property projects.
Last May, CapitaLandannounced that its subsidiary-CapitaValue Homes had bought a 65 percentstake in Quoc Cuong Sai Gon JSC for 121.2 billion VND (5.9 millionUSD).
In addition, CapitaValue Homes purchased three other projects inVietnam , including the acquisition of An Khang real estate company inDistrict 2, HCM City .
According to HCM Cityauthorities, there had been 20 real estate transactions between foreign,joint venture and domestic firms this year.
In Hanoi , there have been fewer M&As but the trend is still up on last year.
Georgia ( US ) - based Archi Group now holds a large number ofshares in real estate developers Song Da River Tourism Company and KimBoi Tourism JSC.
Nguyen Van Duc, deputy general directorof property firm Dat Lanh, said buying and selling was mostly conductedthrough banks and that tightened lending policies had made lifedifficult for local firms.
Duc added that there was a real danger of foreign firms cashing in on the depressed Vietnamese real estate market.
Duc fears that most real estate projects will fall into the hands offoreign investors. He attributes the difficulties the real estate marketis facing to an imbalance in supply and demand. He said most peoplecould not afford to buy an apartment costing 2 VND - 4 billion VND(96,000 USD -193,000 USD) without taking out a mortgage. As a result of atightening in bank lending, a large proportion of mid – to high-endflats cannot be sold, he said.
Neil MacGregor, deputydirector of Savills Vietnam , said increasing inflation, economicinstability and high lending rates would result in a spurt in M&Asin the real estate market this year.
Le Hoang Chau,chairman of the HCM City Real Estate Association, said M&As wouldenable local firms to weather tough economic times.
William Young, MIPIM ASIA's senior project director, said at a recentpress briefing in Hanoi that Vietnam was an ideal destination forreal estate investment this year.
He predicted that in thenext two to five years, Vietnam 's real estate market would becomeincreasingly attractive due to growing liquidity.
Within the short term, investors would chiefly plump for apartments, trade centres and hotels, Young added./.
SBV and Governmentefforts to curb inflation since February this year, have made itdifficult for real estate developers to access credit, leading to adecline in property projects.
Last May, CapitaLandannounced that its subsidiary-CapitaValue Homes had bought a 65 percentstake in Quoc Cuong Sai Gon JSC for 121.2 billion VND (5.9 millionUSD).
In addition, CapitaValue Homes purchased three other projects inVietnam , including the acquisition of An Khang real estate company inDistrict 2, HCM City .
According to HCM Cityauthorities, there had been 20 real estate transactions between foreign,joint venture and domestic firms this year.
In Hanoi , there have been fewer M&As but the trend is still up on last year.
Georgia ( US ) - based Archi Group now holds a large number ofshares in real estate developers Song Da River Tourism Company and KimBoi Tourism JSC.
Nguyen Van Duc, deputy general directorof property firm Dat Lanh, said buying and selling was mostly conductedthrough banks and that tightened lending policies had made lifedifficult for local firms.
Duc added that there was a real danger of foreign firms cashing in on the depressed Vietnamese real estate market.
Duc fears that most real estate projects will fall into the hands offoreign investors. He attributes the difficulties the real estate marketis facing to an imbalance in supply and demand. He said most peoplecould not afford to buy an apartment costing 2 VND - 4 billion VND(96,000 USD -193,000 USD) without taking out a mortgage. As a result of atightening in bank lending, a large proportion of mid – to high-endflats cannot be sold, he said.
Neil MacGregor, deputydirector of Savills Vietnam , said increasing inflation, economicinstability and high lending rates would result in a spurt in M&Asin the real estate market this year.
Le Hoang Chau,chairman of the HCM City Real Estate Association, said M&As wouldenable local firms to weather tough economic times.
William Young, MIPIM ASIA's senior project director, said at a recentpress briefing in Hanoi that Vietnam was an ideal destination forreal estate investment this year.
He predicted that in thenext two to five years, Vietnam 's real estate market would becomeincreasingly attractive due to growing liquidity.
Within the short term, investors would chiefly plump for apartments, trade centres and hotels, Young added./.
