Generally, real estate business in Nha Trang market is agency. The real estate businesses in Nha Trang generally act as go - betweens...
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| The flat block at 312 Da Tuong Street, Nha Trang City constructed by Thanh Dat Co., ltd. |
House trade in Nha Trang - a new tendency
Generally, real estate business in Nha Trang market is agency. The real estate businesses in Nha Trang generally act as go - betweens. The units that really invest in real estate business include Housing Development and Investment Company, Thanh Dat. Co, ltd, Hoan Cau Co., ldt, Khanh Ha Joint - stock Company, Coal Corporation, etc... Through the housing projects, these units have helped warm up the real estate market in Nha Trang.
The thing to mention is that the housing law will come into effect from July 1, 2006, including the clause: Vietnamese persons who settle abroad and have resided in Vietnam for more than 6 months are permitted to own a house or a flat in Vietnam”. The real estate businessmen consider it a good opportunity to warm up the cool housing market.
The real estate businessmen are exploring the situation and have a new tendency to invest in housing. According to them, based on the clause of this housing law, most overseas Vietnamese wants to buy a villa or a flat in beautiful cities blessed with ideal climate like Nha Trang to live in. As a result, large businesses have turned to investing in villa projects, ecological resort projects. In which, Tam Huong Co., ltd is a pioneer unit.
Some proposed solutions
From the reality of real estate market in Nha Trang, the government should not interfere into housing trade deal between individuals but the market will adjust itself. For other housing trade deal that has an impact on society the Province and functional agencies should take interest in giving directions for this.
First of all, the Province should pay much attention to high - class resort and villa area development projects. In which, the Province should take interest in the demand of overseas Vietnamese and those who are of middle class. Actually, the area of urban land can be expanded while the government has put the limit on the area of land for villa area and high - class resort. As a result, the government should examine the economic effect the project will bring about and the real capacity of investors.
For the investment into apartment block for those who have a low income, the investors should work out the real demand of poor people. The local government should take part in housing development instead of letting it float with the market. Besides, the information about real estate must be clear and accurate which helps create a level playing field for everyone and attract all economic sectors to take part in the development of the real estate market.
The major difficulty businesses that invest into building apartment block have had is that they need more capital to invest (even between 70 and 80% of total capital). However most banks put a limit on lending these objects. The local government and banks should have preferential policies in order to have real estate projects carried out as soon as possible.
Real estate is a sensitive one with changeable fluctuation. However, if the government takes measures to control it, we will avoid bad effects it causes.
H.Y
