Banner 01
Banner 02
Banner 03
Banner 04
Banner 05
Banner 06
Banner 07
Banner 08
Banner 09
Rental/Month (USD)  ~ 
Bedroom number
Bathroom number

Weak Dong could hit Vietnam's real estate market

Vietnam’s real estate market is marked with volatility and uncertainty due to two major events. First is the implementation of Decree No.71/2001/ND-CP (Decree 71) since August 2010. Second is the economic crisis due to falling US dollar reserves, the weakening Vietnamese dong (VND) and high inflation.

In HCMC, Vietnam’s economic center, residential resale prices in all segments have been steady for the past two years, according to CB Richard Ellis Vietnam.

      • In the low-end market, the average asking price was US$726 per sq.m. in Q3        2010
      • In the high-end segment, the average asking price was US$1,898 per sq. m. in        Q3 2010 

On the other hand, Hanoi residential resale prices were up 9% on average during the year to Q3 2010, at US$1,837 per sq. m.

      • In the low-end segment, average asking prices jumped 24% y-o-y to Q3 2010,        but were up a mere 2.2% from the previous quarter. 
      • Prices in the luxury and high-end segment fell 1% during the quarter to Q3        2010. 

Decree 71 provides guidance on the implementation of Law on Residential Housing promulgated in November 2005. It replaces Decree 90 passed in September 2006. Intended to minimise risks for buyers, Decree 71 also aims to discourage speculative investments and reduce market liquidity. It also requires clearance from the Prime Minister for large-scale developments.

With the uncertainty over the actual implementation of the new decree, developers accelerated the construction of some projects and the purchase of lands. This led to huge price spikes in some areas while flooding other areas with new supply.

Vietnam’s economic debacle adds to the problem. Double-digit inflation rate led to the rapid depreciation of the VND against the USD. With the managed-float exchange rate regime, dollar reserves are quickly drying up as the government sells foreign currencies to keep the exchange rate within a band.

Some people have even turned (or returned) to a more secure asset for their investment, gold.

As the currency depreciates further, the more people wanted to convert their money into dollars or gold as soon as possible. This has serious repercussions to the housing market because most real estate transactions are quoted and concluded in US dollars. If the supply of dollars dries up, the real estate market can grind to a halt.

[ Back ]
Other news
Vietnam real estate market now recovering: construction minister
In Vietnam, Growing Fears of an Economic Meltdown
Vietnam opens real estate sector to foreigners
Taking a Bath in Vietnam Real Estate
Property market in Vietnam slowing due to high rates and lack of lending
Gamuda property projects in Vietnam doing well despite high interest rates
Vietnam: will property rights solve land disputes?
Vietnam's HAGL plays down ’negative watch’ rating status
Anantara unveils its first property in Vietnam
Mapletree to launch three new property funds in China, Vietnam, Japan
Developers urged to a take long-term view in Vietnam's property market
Gamuda's Vietnam projects doing well despite high interest rates
Property market 'in the spotlight’
Vietnam bank launches lending package for real estate market
Vietnam may push for more houses for rent
Lê Quyền
0942577677 ( in Vietnam)
(+84)942.577.677 (in Abroad)
Send a message
Latest Properties Popular Properties Featured Properties
House for rent in hanoi
Copyright © 2009 FULL HOUSE Co., Ltd. (Vietnam). All rights reserved.
Công Ty TNHH Ngôi Nhà Trọn Vẹn (GPKD: 0103257039 do sở Kế hoạch và đầu tư cấp ngày 20/01/2009)
Người đại diện: Lê Kim Quyền - ĐT: 0942.577.677 - Email:
Head Office: No.80 Lane 12 Dang Thai Mai street, Quang An Ward, Tay Ho District, Hanoi -  
Tel: (024)2246.2811/ (024).2246.2822 - Fax: (024)2246.2822 - Hotline 24/7: 0984.868.678/0942.577.677 - Email:
Developed by Full House Property | Privacy Policy (Chính sách)
Facebook Chat
Follow us on: