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KOSY CHAIRMAN NGUYEN VIET CUONG: THERE IS NO PLACE FOR “BUBBLES”

Date 21/09/2021

The real estate market in 2019 is forecasted to keep quiet. But many people suggest that opportunities will not be lacking because demand in the real estate market is changing according to the development of the economy. Meanwhile, the economy in 2018 grew 7.08%, the record in the last 10 years. This means that people’s lives are improving and housing demand also changes …

Besides, the positive development of the real estate market in the last months of the year also opens the next stage of further development, especially in the context of investors starting new directions.

VTC News interviewed Dr. Nguyen Viet Cuong – Kosy Chairman of the Board of Directors on the new development trends of the real estate market and thepotential development of each segment in 2019.

– In your opinion, how will Vietnam’s real estate market in 2019 continue to grow?

In 2019, Vietnamese real estate enterprises will face many challenges but also many opportunities.

The people housing segment is affordable and the mid-end housing segment will continue to play the leading role and the highest liquidity. However, the supply of land for this segment is seriously deficient, contrary to signs of oversupply in the high-end segment. Therefore, investors need to calculate the product restructuring and roadmap, schedule to bring products to market. The competition in the high-end apartment segment will be fierce.

The segment of industrial and office real estate will grow strongly in 2019.

Prices of spontaneous land plots, agricultural land and illegal plots will return to the real value and the areas of illegal allocation will be reviewed and rectified in accordance with the law.

Will not happen “bubbles” in 2019.

Dr. Nguyen Viet Cuong

The condotel segment will continue to slow down and be more affordable.

The advantage belongs to projects with a favorable position, developing towards green and smart real estate, creating different, unique levels, integrating many utilities, services and safety.

– Which real estate area will emerge in the coming year, sir?

Real estate waves will still focus strongly in the service segment, but tend to shift to landforms in the areas near large cities. In the past, new urban areas often concentrated in large cities, but in recent years, provincial projects have attracted special attention from the market.

The nature of the cash flow in the population is not lacking, even considered an abundant source, but due to the “strong and durable” mentality, they choose other accumulation options that are not real estate. However, in recent years, the liquidity of urban projects or new residential areas in the provinces has shown a certain change in this view.

– Recently, many opinions suggest that bubble phenomenon in some places has formed and just waiting for other phenomena of the economy to break. What do you think about this and whether the worst scenario can happen?

Will not happen “bubbles” in 2019

The reason for this assertion is that over time, state management agencies have had a lot of experience in the effective use of tax tools, strengthening credit control and stricter ones. work related to planning and land use planning as well as project investment guidelines.

This is an effective tool to regulate the real estate market as soon as it shows signs of floating bubbles. Therefore, there will be no possibility of real estate bubble in 2019.

Although there will be strong waves pouring into each segment of the market, it will show more exciting movement of the market than worry about “bubbles”.

– Besides domestic companies, there have been a series of foreign project developers in recent years investing in the Vietnamese housing market (such as Keppel Land, Sunwah Group, Gamuda Land, Lotte …). How do you rate this trend?

The appearance of foreign investors deploying real estate projects in Vietnam is a trend that has been flourishing in the past few years. You can see in big cities such as Da Nang, Hanoi or Ho Chi Minh City, these businesses are particularly interested in international hotel brands and developing service apartments. They all directly develop scale projects, creating certain large and symbolic projects.

This trend is essentially a catalyst for us to have the opportunity to purify the market, because foreign enterprises are always considered more professional, stronger financial resources, … will make businesses Domestic enterprises are required to improve service quality and project quality in order to compete fairly, or will be short of breath in the race.

Vietnamese businesses can learn more, but the elimination of the market is of course also more rigorous.

– Infrastructure such as IoT, broadband telecommunications … are forecasted to create a demand for smart and highly connected and environmentally friendly living and working spaces. How are these trends happening in the world and how is the application in Vietnam today, sir?

Smart urban or smart city is a growing trend and become the core strategy of the leading cities in the world. And similarly in Vietnam in the current context there are many advantages.

Kosy Complex Dong Anh – Hanoi Urban Project is oriented to develop under the model of smart urban.

The first advantage is that the determination of the political system in the Technology Revolution 4.0 and clearly defining the smart city is an inevitable trend. From the determination of the political system, the legal corridor is gradually formed to support and have more solutions to attract investment to implement the smart urban model.

The government has been promoting implementation of e-government. Most of the public services are now online (88%). Vietnam has basically covered 4G, 54% of the population use the Internet and about 55% of Vietnamese people use smartphones.

However, there are still difficulties when implementing smart urban construction because the construction of smart urban is still lacking “standard”. Most of the criteria are still “based” according to international standards. Therefore, one of the things needed in this phase is to quickly build a system of technical regulations to ensure synchronous deployment.

In addition, the biggest difficulty is the lack of effective cooperation or capital to build a smart urban area because this requires a huge amount of capital. Meanwhile, the state budget is still difficult. Even the problem of hiring information services is only one pilot decision on this form, but there is no specific guiding document. Therefore, it is very difficult to implement.

Next time, we expect in the form of public-private partnerships – this is a reasonable form to effectively mobilize resources in society, especially to attract both domestic and foreign enterprises to participate. building a smart urban area.

Real estate waves will still focus strongly in the service segment, but tend to shift to the form of land in the areas near the big cities.

Dr Nguyen Viet Cuong

– Can you share some outstanding achievements of Kosy in 2018 and what is the development strategy for 2019?

2018 is the year of Kosy’s strong growth after 10 years of establishment and development with many major events, many important milestones took place in this year. We have successfully increased our capital to thousands of billion VND, officially opened a representative office of Kosy Group in Ho Chi Minh City, started hydropower projects in Lai Chau, … and at the same time strengthened the first work. develop projects with larger scale, in the higher-end segment of many fields in the provinces in the country such as Hanoi, Ha Tinh, Ninh Binh, Phu Tho, Lao Cai, Sa Pa,…

 

 

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