Real estate market shows resilience

HCM City (VNA/VNS) - Despite not showing much sign of recovery, the real
estate market is exhibiting a surprising ability to absorb investment from all
available capital sources, including banks.

Since the beginning of this year, banks have lent to several property projects. In
the country's two biggest real estate markets, Hanoi and Ho Chi Minh City ,
around 10 major projects alone have absorbed around 1 billion USD in bank credit.

In January, the Bank for Investment and Development of Vietnam (BIDV) agreed to
lend Hoang Anh Gia Lai 5.65 trillion VND (323 million USD) for property
development.

In February, the Bank for Foreign Trade of Vietnam (Vietcombank), gave Indochina
Land a loan of 44 million USD to develop the 145 million USD Indochina Plaza Hanoi,
a housing, office, and commercial complex.

Fei Yueh Vietnam began construction of five-star hotel Nikko Saigon in District
1, HCM City , at a projected cost of 100 million USD.

Some banks have said they are ready to fund "good" property projects that are easy
to buy and sell.

Nguyen Hoa Binh, chairman of Vietcombank, said Indochina Plaza is a sound
project.

The Bank of Technology and Commerce (Techcombank) is targeting really sound
property development projects for lending, Nguyen Duc Vinh, its general director,
said.

Besides lending to property developers, many banks have also earmarked considerable
sums of money to lend to individuals buying housing. The latter amount is estimated
at 65-86 trillion VND.

Vietcombank is considering lending to people buying apartments in Indochina
Plaza , Binh said.

Vinh revealed that his bank has earmarked 1.5-2 trillion VND for loans to people
who want to buy or repair houses in the next few months.

ABB Bank has given an estimated 3-5 trillion VND in personal loans, a large part of
which is thought to have gone into the property market.

Dang Hong Anh, chairman of Sacomreal - the property trading arm of the listed
Sacombank - said the real estate market is ripe for recovery after a year of being
in the doldrums.

Housing and land prices as well as bank interest rates have plunged and the
Government is implementing several stimulus programmes, he said.

If property developers are ready to relinquish some of their profits and sell at
reasonable prices, people would be ready to buy, he added.

Analysts said many property developers are opting for apartment blocks with small
units to meet an increasing demand from young couples with moderate incomes.

Earlier this month, the Nam Cuong Group (NCG) began construction of two units of
its NCG Residentials in Hanoi 's new Duong Noi urban area.

At NCG Residentials, to be completed in 2011, 71 percent of the units have an area
of 55sq.m.-Enditem