Painful property correction | Bangkok Post: business

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Painful property correction

Real estate market in Vietnam at a standstill after three years of over exuberance. Prices are at rock-bottom but so is buyers’ confidence.

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No area in Vietnam feels economic pain more acutely than the real estate sector, where housing prices have declined to “dream” levels but buyers still shake their heads because they have lost confidence. 

Vietnam’s property market slowed to a halt in late 2008 because of the global economic crisis but improved at the end of the following year thanks to the government’s US$8-billion stimulus package.

The sector slowed again in mid-2011 and remains frozen due to skyrocketing lending interest rates that have reached 18-20% per year and low demand and purchasing power.

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