Vietnam's home prices to fall 15 pct before rebound, CBRE says

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Vietnam's home prices may fall as much as 15 percent this year before the nation's property market starts attracting buyers, according to CBRE Group Inc.

"We will see a stop" to the decline in residential prices, Marc Townsend, managing director of the brokerage's local unit, said in an interview in Hanoi Thursday. "We begin to see confidence come back to the market."

Townsend said he expects some developers may not be able to survive. Many of them suspended new projects in the nation while prices dropped as property companies tried to accelerate the sale of their assets, Viet Capital Securities said in strategy report last month.

Vietnam tightened credit last year to choke off a surge in inflation, restricting loans for the real estate sector and raising interest rates. Growth in the $104 billion economy slowed last year and the government said it would keep tight monetary policy this year to curb inflation.

In 2012, more companies may bring their "distressed deals" to the market, Townsend said. "In the past, absolutely no one wanted to talk about selling building, selling land but now it becomes much more acceptable to talk openly about what of their portfolio may be available for sale, or joint-venture."

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