What do you think about the developing trend in the property market?

Firstly, with 72 per cent of the population being under 35, Viet Nam has the youngest population per capita in the world.

During the next few years, those people will be in a stable period therefore the demand for housing will be much higher when compared to present demand.

Secondly, in other countries, mature people often live independently and apart from their parents but big family homes are popular in Viet Nam. When the living standard improves people will choose to live separately.

In term of investment capital, the foreign direct investment in Viet Nam has increased quickly to US$6.5 billion in 2005 and an expected amount of over US$8billion by the end of 2006.

In addition, Viet Kieu (overseas-Vietnamese) have sent around US$2.9billion each year back to the country.

According to recent statistics, there are more than 100,000 Viet Kieu, out of a total of 3 million overseas Vietnamese, who want to buy a house in their home country.

The urban population accounts for 26 per cent of the nation’s total population and this ratio will increase in the future. The large numbers of immigrants to big cities here for work and study is also a factor that pushes up the demand for housing.

Is there anything else that can have a big effect on the market?

Since Viet Nam entered the World Trade Organisation, existing companies need more and more space to expand their offices, while newly established companies need a location. Thus, the demand for office space has increased and will continue to grow in the future.

The numbers of both international and domestic tourists has been increasing very fast, leading to a bigger demand for hotels and resorts. That will also affect the property market.

The high stability of Viet Nam’s currency and its sustainable economic development will be the basis for the property market’s development.

When Viet Nam officially enters the WTO, there will be more new capital investments from foreign investors, banks and property funds entering the domestic property market.

However, many foreign experts say that the property market has not actually developed. What do you think about these comments?

The property market always has a strong socio-economical effect. The fast growth in the economy makes the property market even hotter.

However, the price of land is very expensive in big cities in Viet Nam (compared to the average income of citizens). Land prices are much cheaper in the outskirts of cities and in rural areas. Thus, the Viet Nam property market has not developed comprehensively. In the future, the market will reach areas which are outside city centres.

More than 80 per cent of property brokerage revenue in Viet Nam belongs to individuals, despite more than 50,000 businesses operating in the field. It shows that the market has great potential.

What types of customers is the market targeting in the future?

Owning a house is very important to Vietnamese people. At present, people tend to use their own money to buy a house while people in other countries may get loans of up to 90 per cent of the total price of the house. Many banks have conducted this service in Viet Nam which means buyers need only 10 per cent of the total amount to buy a house or an apartment.

In the long-term, people who do not have enough money to own a house will be the market’s key customers.

Is that the reason why your company is co-operating with the Civil Construction Company on a project in Chealsea Park, Cau Giay District?

We know that the high price of a property depends a lot on if that property is located in an area with good infrastructure and high density. Cau Giay area has become one of the property market’s hot spots as it has quite modern infrastructure. Many big works, such as the National Conference Centre, modern urban areas and large centres for huge commercial groups, have been built.

The district will also be a political centre where managing mechanisms are developed in the future. That is the reason why we decided to invest in construction at Chealsea Park luxury apartments, including 240 apartments and 10 villas in Yen Hoa.