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Impressive Increase of Overseas Remittances in 2011 (22 December 2011 15:20)
As the year is coming to an end, the real estate market is energized by the news that Vietnam is one of the 10 countries which have received the greatest amount of overseas remittances in 2011, as reported by the World Bank and Western Union Asia-Pacific in late November.
Estimated to be over USD9 billion, these remittances, 52 percent of which will be invested in real estate, are expected to help boost the nation’s economy in general and the real estate market in particular.
On 06 December, 2011, the Prime Minister issued Directive 2916/CT-TTg for tighter control of the real estate market, which requires that the State Bank of Vietnam apply measures to increase liquidity and to save the real estate market from freezing. As a result, credit policies for real estate will be loosened to encourage developers and market participants.
The great amount of overseas remittances is expected to translate into increasing buying activity. It can be said that it’s now the perfect time to invest in real estate because home prices have fallen almost to a record low. Investors as well as purchasers, however, need to consider the risk as well as the lucrative potential before making a decision. Other factors include developers’ original prices, location, infrastructure, legal matters, facilities, amenities, proximity to other areas and the developer’s commitments.
Along with the government’s aid policies, positive signs from the macro-economy, slowing inflation, and commercial banks’ loosening credit conditions for certain types of real estates, overseas remittances are hoped to solve credit problems in the real estate market, encourage developers as well as energize the market. All these promise a rosier future for the real estate market in 2012.