High end apartment market refreshes quickly and strongly in new year

HCMC real estate market changes in the new year

HoREA forecasts the real estate market in HCMC in 2018. The middle-class apartment segment, affordable housing will be the market. High-end segment will be restructured by investors to develop a new development strategy. As the premium segment over the past year has lost its identity, causing excess supply in the market.

Report on real estate market in 2017 and forecast of the market in 2018 of HoREA (HoREA), said: “The market in 2018 will still maintain the growth potential as in 2017. There is still a slowdown compared to 2016. “

However, in 2018, there will also be a strong restructuring from the high end segment and the market dominance of the mid-range segment.

The market in 2018 of Ho Chi Minh City will record a “swing” between the high-end segment for the middle segment

Affordable housing will be the most developed type in the new year

According to HoREA, in 2018 the type of affordable apartments under $ 1 billion, with 1-2 bedrooms will be the master on the market. Because it is easy to sell and highly liquid. The high-end segment will have the product refinement to fit the customer.

Interestingly, according to HoREA market familiar types such as condotel or land, .. will remain stable growth. Meanwhile, according to many estimates, the dispute in the apartment will continue to occur. Because old condominiums are poorly constructed and poorly managed by the government.

HoREA Chairman Le Hoang Chau said that the property market in 2018 will be influenced by both internal as well as external factors. It is from the people, from the city government, from foreign capital, remittances, markets nationwide, …

Mergers and acquisitions are forecast to remain strong over the next year. As this is a positive trend for the market

The government’s target for GDP growth in 2018 is 6.5 to 6.7 percent. In addition to the positive movement under the motto “Government action, tectonics, integrity, companion business.” That will be important factors and have a positive impact on the economy, as well as the real estate of 2018.

M & A activity will continue to grow strongly in 2018. It is projected to be stronger than in 2017. Accelerating the implementation of projects and contributing to market refinement real estate.

Foreign direct investment (FDI) and overseas remittances will remain an important source of real estate development in the city in 2018, as well as in the years to come.

Optimistic about adopting a specific mechanism for HCMC

A matter and factor is considered extremely optimistic that HoREA highly appreciated. That is the newly approved HCM City for the specific mechanism to develop. In addition, Ho Chi Minh City has developed a strategy with 19 criteria to successfully build a smart urban. On the premise that the 4.0 technology boom is booming today.

The forecast is, or will not appear “bong bong” real estate in 2018. HoREA thinks it is very unlikely. Because of state intervention, it is becoming more and more timely and effective.

Not only that, but also enterprises are trying their best to restructure their businesses and restructure their products. And secondary investors are becoming more and more aware, as well as being more cautious with the real estate market.

“In a more verbal way, after stumbling in the 2007 period, they now have more experience and more alertness in investing. The market is now also a smart market with: smart state, smart investor, smarter bank and smart consumer, “Chau said.

HCMC real estate market will now stabilize and grow much stronger. Since the parties are now “more intelligent” in investment

HoREA forecasts that in the period 2018-2020, the city’s real estate market will have a strong restructuring to address supply-demand distortion. Especially to consume excess of high-end real estate that 2017 leave. Helping the market to grow stronger and more sustainable.

Of course, when the premium segment does not hold its place. The mid-range segment with affordable flats will rise. It meets the real needs of the majority of middle-income, low-income workers in urban areas.

HCMC has also been focusing on its transportation infrastructure projects. They understand that projects such as roads, overhead trains, airports, urban buses, etc. will be the driving force for economic development, for real estate development. And contribute much to the construction of a smart urban.

This is highly appreciated by Chau and can create favorable conditions for real estate businesses. Because the infrastructure projects will help real estate companies can “follow the infrastructure” and make big profits.

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