Hanoi (VNA) - After posting a stable performance this year, the propertymarket is poised for solid growth in 2017, driven by the improved economicsituation, and developers more focused on market demands.

Experts,speaking at the annual conference entitled "Vietnam Real Estate Market:Overview and Forecast", organised by the property websitebatdongsan.com.vn on Saturday, said the market would see strong competition inproduct quality, but at reasonable prices.

Also,property expert Dang Hug Vo said that an over-heated market would not likelyhappen in the overall market or some segments next year, but demand wouldcertainly be higher than this year.

Still,attention should be paid in the second half of this year, as there would befactors that could contribute to the formation of a market bubble, such assignificant price increases and speculation.

Expertsalso said at the conference that resort, hospitality and housing propertieswould highlight the market in 2017, as demand for these two segments remainshigh.

“Developersare expected to move towards the market demand in 2017, with a focus onoffering housing of good quality, but at reasonable prices,” Vo said, addingthat the market was witnessing an alarming imbalance between supply and demandin the apartment segment.

Inthe high-end segment, demand accounted for just 20 percent of the market’sdemand, while supply accounted for up to 80 percent of the market’s supply, andvice versa for the affordable housing segment, according to Vo.

Vosaid the affordable housing supply would increase next year, as severalproperty developers recently announced expansion into this segment, includingVingroup and Him Lam. However, supply would still be below demand next year, headded.

Meanwhile,a report from batdongsan.com.vn, which has 50 million page views per month andnearly 2 million regular users, found that the apartment segment receivedsignificant attention from the market, accounting for one-fourth of the totalsearches, said Nguyen Quoc Anh, Deputy General Director of the Dai Viet Group –the website’s owner.

Recommendations

NguyenManh Ha, former Director of the Housing and Real Estate Development Department,said property developers should not only rely on the Government’s incentives todevelop affordable homes, but should actively develop what the market needed.

Accordingto expert Can Van Luc, the Government should have measures to develop thecapital market for the property market, which was still heavily dependent onbank loans.

Lucsaid the foundation and operation of the real estate investment trust (REIT)should be promoted, together with the security of property projects.

Lucurged the creation of a property market information centre to improve markettransparency.-VNA