CBRE keen on Quang Ninh property developments

Last year seemed to indicate a recovery in the housing market, particularly for mid-priced apartments, do you expect the same this year?

Well, 2013 was a better year than 2012, as the number of transactions increased 90 per cent compared to the first-half of the year. However, sales prices in the secondary market in the fourth quarter of 2013 continued to decline, just as prices decreased in the third quarter of 2013. The economy is expected to be slightly better this year. However, this probably means that the property market is hardly likely to fully recover without government intervention.

CBRE Vietnam’s managing director Marc Townsend claimed now would be the best time to buy a house in the past five years. Is that your view?

According to CBRE, the current market is back to the price levels seen six years ago. This explains why Marc Townsend described the current time as a good moment to buy. As mentioned, price levels might decline this year before rising again. So buying this year might be better value than last year.

The real estate market continues to face difficulties with many uncompleted projects. So will there be positive signs in smaller markets like Quang Ninh or Danang?

The IMF and Economist Intelligence Unit believe the global economy is set to recover, which might boost greater travel and tourism. As a result, there will probably be positive signals in the Quang Ninh and Danang real estate markets this year because both focus on tourism property.

Quang Ninh seems to have caught the interest of developers such as Limitless LLC, Lung Xanh, Muong Thanh, Thanh Nien and Big C. Do you think that Quang Ninh will remain popular through next year?

Whether this is the case depends on the types of projects and the developer’s abilities. Quang Ninh should focus on quality rather than quantity to promote a more professional market. For instance, the BIM Group’s Halong Marina new urban area project includes integrated infrastructure, transportation, and a mixed housing development, which should mean it can appeal to a wide variety of customers. Other potential projects include Casino’s joint venture with ISC Corp (US) and a hotel and entertainment complex pushed by Limitless LLC (Dubai).                     

Enormous shopping malls or high-end apartments seem popular in Hanoi or Ho Chi Minh City.  Last year, Quang Ninh witnessed the grand opening of several brand-new projects such as Halong Marine Plaza and BIM Group’s Green Bay Towers, one of the top-notch developers in the province. Vingroup is also going to launch the Halong Mega Mall in the near future. What do you think about these projects?

Retail shopping projects are influenced by the economic recession which means lower demand and tighter spending by both retailers and customers. However, visionary pioneers are necessary. According to our research, pioneering cities like Ho Chi Minh City, Hanoi, Danang and Haiphong have gone ahead with supermarkets, shopping malls or electronics shopping malls as they continue to attract customers. After that, food and beverage outlets, fashion and cosmetics will help prime the market. Halong Marine Plaza offers a combination of shopping, entertainment and restaurants at one destination. Shopping complexes are new to the market and face lots of difficulties. Visionary projects backed by financially strong investors, combined with new shopping habits are the most important factors for success in this case.