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The infrastructure is strong and perfect, immigrants are unstoppable to Ho Chi Minh City, M & A boom … are the reasons for expecting real estate market in HCMC will continue to grow well in the year 2018.

Infrastructure is improving

In 2017, the impact of infrastructure projects on the development of HCMC real estate is huge, and this trend is predicted by many experts to continue in 2018. This is because the city is striving to become a megacity. Last year, Ho Chi Minh City had dozens of large and small bridges and new traffic lanes were planned to be built throughout the gateway as well as the main urban axis of the city (including East, South and the West). In 2017 alone, funding for infrastructure development is estimated at over ten trillion dong and the completion of the infrastructure will likely be extended to 2018-2019.

Traffic infrastructure is the launching pad for the growth of the real estate market because of bridges, buildings, houses, and urban areas. Therefore, based on the infrastructure variable, it is possible to expect a bright scenario of real estate in 2018.

The wave of immigrants arrives in HCM City

Over the past decades, Ho Chi Minh City has become a powerful magnet for immigrants from all over the country to come here for study, tourism, working, living and business. . In recent years, the increase in mechanical population in this metropolis has been even stronger. The high population density requires the development of a huge amount of housing to meet the needs of people. This is an important factor promoting the real estate market development, based on the demand for housing increased steadily each year.

M & A with strong foreign block

The participation of foreign investors (group of institutional investors) from East Asia (Japan, Korea and Singapore) has contributed to create a new look for the real estate market in Ho Chi Minh City. Foreign real estate developers have a fairly comprehensive advantage, but the gap in the distribution channel and the internal block often have problems with the arrangement of long-term capital flows, but also some restrictions on transparency in managementphysical.

In 2017 many real estate giants in the country have linked with foreign investment funds to mobilize cheap capital, listing to access capital from the stock market easier. This trend may continue to spread to 2018. The interior can involve foreign partners to develop projects based on the strength of the land fund plentiful. This is a positive signal to help the market develop in terms of quantity and quality.

Thanks to the unique mechanism of Ho Chi Minh City

In 2018, Ho Chi Minh City stepped into pilot stage specific mechanism in urban management and development more flexible. This unique mechanism allows the city to mobilize resources for comprehensive infrastructure development. Bridges up the property is also strong growth. The number of real estate projects and housing projects will rapidly grow along the new infrastructure. It’s still early to predict what will happen when the unique mechanism is applied in HCMC, but spiritually, this is a new push to promote the growth of real estate.

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