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Exchange rate increases do not affect much on real estate

Vietnam’s recent devaluation of the dong will have a limited impact on the real estate market as the market is largely fueled by domestic demand and dominated by domestic supply, property research firm CBRE said in a new report. Vietnam’s residential property market is dominated by domestic supply, with supply by foreign developers only accounting for less than 10 percent. Hence, impact of the currency movement to prices would be limited. Prices would be affected, however, when currency devaluation creates pressure on inflation. Furthermore, CBRE said while local investors with cash savings in dong may turn to real estate, foreign buyers may not be too much drawn by a cheaper dong.