Tin mới
Property companies proliferate (12/03)
06/08/2010 - 37 Lượt xem
At the end of last year when the domestic real-estate market was developing particularly quickly, many new property companies were set up to meet market demand. Sub-companies were also born of this trend, working in investing, consulting, designing and constructing.
Some people have drawn parallels between these companies and the boom of newly opened securities companies established last year, yet there is an important distinction between the two trends.
While investors of securities companies are banks and financial groups, investors of many property companies are corporations and groups that operate outside of construction and therefore lack an in depth understanding of the market.
Many big companies such as the Housing and Urban Development Corporation (HUD), Lilama Corporation and Viglacera have poured money into their own property companies.
Given the market’s strength, rapid investment was not surprising and could actually help regulate the market, said HUD chairman Nguyen Hiep.
with the potential for large profits, real estate being a prime example.
However, other experts suggested that new property companies would increase the total capital invested in the real-estate sector so that the investment structure would change for the worse, causing damaging inflation.
Recently, 130 real-estate companies and groups have established projects, and Viet Nam is set to attract 20 billion USD in foreign direct investment in 2008, with many projects involving real estate and infrastructure.
Experts said that with property companies exceeding projects in number, rea-estate prices could escalate due to repeated buying and selling. Large companies would seek to monopolise the supply, they said.
The State could manage such problems, helping to implement proper policies, perfect planning and publicise taxe, said Dang Hung Vo, a real-estate expert.
The key area to monitor was capital flow into the market. “We should not be afraid of controlling the market with tax and preferential policies,” Vo said.
The market could face over-saturation if it lacked proper State management, he said. In turn, this could create a risky situation for investors and the market at large.-Enditem
Source: Vnagency
Some people have drawn parallels between these companies and the boom of newly opened securities companies established last year, yet there is an important distinction between the two trends.
While investors of securities companies are banks and financial groups, investors of many property companies are corporations and groups that operate outside of construction and therefore lack an in depth understanding of the market.
Many big companies such as the Housing and Urban Development Corporation (HUD), Lilama Corporation and Viglacera have poured money into their own property companies.
Given the market’s strength, rapid investment was not surprising and could actually help regulate the market, said HUD chairman Nguyen Hiep.
with the potential for large profits, real estate being a prime example.
However, other experts suggested that new property companies would increase the total capital invested in the real-estate sector so that the investment structure would change for the worse, causing damaging inflation.
Recently, 130 real-estate companies and groups have established projects, and Viet Nam is set to attract 20 billion USD in foreign direct investment in 2008, with many projects involving real estate and infrastructure.
Experts said that with property companies exceeding projects in number, rea-estate prices could escalate due to repeated buying and selling. Large companies would seek to monopolise the supply, they said.
The State could manage such problems, helping to implement proper policies, perfect planning and publicise taxe, said Dang Hung Vo, a real-estate expert.
The key area to monitor was capital flow into the market. “We should not be afraid of controlling the market with tax and preferential policies,” Vo said.
The market could face over-saturation if it lacked proper State management, he said. In turn, this could create a risky situation for investors and the market at large.-Enditem
Source: Vnagency
