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Real estate agents in Vietnam report first signs of recovery

According to real estate property brokers in the city, the number of property-related transactions has increased sharply.

Lam Van Chuc, director of the Phuc Duc Real Estate Company, said the number of people that bought properties in the last few weeks tripled as compared with the figures from the same time last year.

Also Luong Tri Thin, director of the Dat Xanh Real Estate Construction Service Company, said that the company has received about 200 people each day who asked for information on land plots.

'On average, we sell about 40 land plots in the My Phuoc area a day. The return of investors to the real estate sector is happening much sooner than we expected,' he said.

Property insiders attribute the positive signs to cuts in deposit rates and lending rates as well as property developers discounting.

'With the current interest rates, depositors do not receive attractive profits any longer, while the domestic securities market shows no signs of recovery. Therefore, many people are deciding to shift their savings to the real estate sector,' said Nguyen Vu Bao Hoang, director of the Thu Duc Housing Development Joint Stock Company.

However, property expert Nguyen Ngoc Duong, who is the chairman of the managing board of the Five Star Joint Stock Company, is urging property investors to be cautious before making any investment decisions in order to reduce risks.

'The market has become more lively thanks to the increasing number of people who become real estate agents to study market information. In reality, the number of successful transactions still stands at a modest level,' he said.

Le Hoang Chau, chairman of the HCM City Real Estate Association, agreed with Duong and said that it was too early to say whether the local real estate market has recovered. Many customers had not yet regained their confidence in the property market, he said.