HCMC real estate market HCM get the risk at apartment projects with the price of VND 1-2 billion

This is the opinion of expert Ngoc Khuong from Savills Vietnam on the issue of housing in the real estate market of Ho Chi Minh City in the coming time. According to other leading experts, the procedure of making the apartment project difficult, the value of the virtual hot land is making the access to housing becomes very difficult for people with real needs.

Around the fever on a large scale in the area of ​​TP. “The surge in prices is not so much,” said Phan Truong Son, Head of Housing Development (HCM City Department of Construction). In the market there are many needs, the demand for housing is quite high. Besides, there are demands of speculators to make profit. Stigmata give out information is not true. The market increase of 2-5-10% is appropriate. With cases of 50-70% increase should be cautious “.

Explaining the growth of the market, Mr. Son pointed out the decisive factors such as infrastructure, work progress, locations of projects, actual demand, investment demand are more stable before.

HCMC real estate market HCM get the risk at apartment projects with the price of VND 1-2 billion

According to experts, the current segment attracting most customers is 1-2 billion are in serious shortage of supply. Meanwhile, the actual demand from the people is much larger than the high-end segment.

“For the apartment segment of VND 1-2 billion in the next 5 to 7 years, it is difficult to deploy,” said Su Ngoc Khuong, director of Savills Vietnam’s investment division. This is due to three basic reasons: Land value accounts for 40-60% of real estate value. Second, from the time the application to the project to the product creation at least 3-5 years is too long. Tuesday is a matter of finance, banking.

To overcome, in terms of policy, Phan Truong Son said, the city will soon have the policy of encouraging investors to build cheap segment. In terms of projects, the city will proceed to clearance before the new auction organized for business. The city plans to develop 40 million square meters of social housing in the near future. Every year increased 8 million sqm floor. It is expected that by 2020, floor area will average 19.8sqm/ person.

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