Suspended ventures due to lack of administrative procedures are instigating a severe shortage of supply and sharp increase of prices of the property market in Ho Chi Minh City, as well as in outskirt areas.
Due to lack of a legal framework, the condotel market remained tight through the first half of the year.
Asian property developers are looking at Vietnam with great interest, according to industry insiders, both Vietnamese and foreign.
In the year-to-date FDI in real estate has been worth US$5.9 billion, the highest level in a long time and second in terms of sectors this year with almost a fourth of total investment, the Foreign Investment Agency said in a recent report.
Despite a recent jump in the number of condotels offered to the local market, buyers are at risk of not being given ownership certificates or red books.
The high-end property segment in Ho Chi Minh City is experiencing a lull, with supply exceeding demand whilst cheap apartments and land lots priced around VND1 billion (US$44,000) are in high demand, mostly from graduates and newlyweds.
Many real estate developers in recent years have been running a race to provide products that serve tourism, an achievement that has helped attract 10 million foreign travelers to Vietnam.