After the fire at Carina Plaza apartment : Transaction can be temporary but home prices will not fall

In the opinion of experts, the effect of the Carina Plaza fire on the apartment market is undeniable, however, this effect is not large enough to stop the transaction and bring down the price of housing.

As VietnamFinance has announced, a major fire broke out at Carina Plaza (District 8, HCMC) on March 23, killing 13 people and injuring 14 others. The fire also caused 17 cars and more than 340 motorcycles were burned. This is the biggest fire damage in 16 years in Ho Chi Minh City.

Commenting on the impact of the fire on the apartment market, at a regular government press conference held on April 2, Minister – Chairman of the Government Office Mai Tien Dung said after the fire (and Some other cases have occurred recently. Apartment prices may fall.

Spokesman of the Government Office immediately received the attention of investors real estate market. Nguyen Hoai An, Head of Research, Consultancy, Pricing and Asset Management, at the press conference on April 3, said that the assessment of the impact of fires on prices Condominium must be carefully considered.

Transaction can be temporary but home prices will not fall

Specifically, Ms. An identified the fire will make the apartment market become more distinctly distributed in the eyes of consumers. “Projects that are built in a consistent manner, meet the regulations and reputable investors are less likely to be affected by the price.” For investors with no experience, capacity, The impact on sales, when sales are affected, inevitably adjust the price, “Ms.An said.

However, Ms.An stressed that this impact will not spread throughout the market and basically, do not make consumers turn away from the apartment.

“After this, homebuyers will pay more attention to the technical systems, fire protection system of the project and this will be the driving force for investors to invest more carefully. , design process to more secure the security of the building, “Ms. An added.

From the perspective of a real estate developer, Pham Ngoc Tung, general director of Samland, said that the fire of the apartment had a certain impact on the psychology and consumer behavior of consumers. The most obvious manifestation of this influence is the number of projects in HCMC. HCM has decreased from 10 to 15% of transaction volume.

However, about the price, Mr. Tung said that the fire will hardly affect the price of the apartment. “The price of a property is determined by three factors, one of which is the law of value, the other is the law of supply and demand, and the third is the rule of competition, not influenced by psychological factors. But price does not affect the price immediately, “Mr. Tung told VietnamFinance.

General Director Samland shared his views with Nguyen Hoai An of CBRE, saying that the fires would create a clearer distribution in the market. Accordingly, customers will tend to be stronger in selecting reputable investors, good quality projects, good management and good service.

Nguyen Van Dinh, deputy general secretary of the Vietnam Real Estate Association (VnREA), said that apartment transactions could be affected by the impact of the fire. However, the demand of people is still very high and the apartment is still a product line suitable for many people.

“I estimate the fires do not overwhelm a lot but only a little at the present time, which can slow down a bit of trading but it will definitely pass quickly,” said Mr.Dinh.

The deputy secretary general of VnREA emphasized that through the fires, it is important to have more fierce involvement of the authorities. Investors must pay more attention to and comply with the regulations on fire prevention and fighting in the installation of equipment and treatment systems.

“There must be a lot of rehearsal going on in the past, but most of the time, it’s the form. Officials do function seriously, thus creating new beliefs for residents and for the market, “Mr.Dinh added.

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