Real estate market in HCMC 2016: slow but sureBy 2016, the People’s Committee of Ho Chi Minh City has licensed construction of 57 new projects to be implemented. Among them, there are 5,630 units in the high-end segment (accounting for 20.3%); Nearly 15,000 apartments in the middle segment (60.3%) and about 3,000 apartments in the popular segment (21.6%).
Parallel to the supply, the price of dealing apartments is also in a similar situation. There is a clear shift in segments. As the market is witnessing the rush of the mid-range segment. Mr. Le Hoang Chau, chairman of HoREA, said that the analysis of the statistics. If you compare 2016 with 2014 (24,522 apartments) and 2015 (25,562 apartments). Then the number of 23,000 in 2016 shows that the market has shown signs of slowing down.
According to data released by HoREA, in 2014 luxury apartments accounted for 45%, medium-class 28% and low-grade 27%. The corresponding figures for 2015 are 40%, 35% and 25% respectively.
By the end of 2016, the high end segment was down 14%, the low end was down 7% and the mid-end led by 49%.
“The state perfect legal framework, mechanisms, policies regulate the real estate. Having made the market more open, the competition between average investors is now more equal. This creates a breakthrough for the real estate market in Saigon. Therefore, this market has a slow growth index reflects a reality. This is the period of rest of investors before moving to the new road, “said Le Hoang Chau.
2017 is the year of the mid-range segment
To meet the needs of people, meet the majority of customers. Many businesses have begun to divert their investment strategies. The midrange segment of the market has been more attention than before.
Himlam Land is a leading company in the new trend. Previously the company mainly developed high-end segment projects. But starting from 2016, the company has moved by launching more than 2,000 apartments in the midrange segment with prices below VND2 billion.
Share business development in 2017. Mr. Ngo Quang Phuc – Deputy General Director Himlam Land said. The company continues to bring more mid-range apartment projects to the market. And in 2017, the company has increased the contribution of 2,000 more apartments for the city.
Earlier this month, Vingroup also revealed that Vincom will invest in building a chain of Vincom branded houses priced at VND700 million per unit. The target of 200,000-300,000 is the number that Vingroup wants in this market.
Vietcomreal real estate company is a new business to enter the market not long. They have launched two projects attracting a lot of attention are Riva Park (District 4) and Viva Riverside (District 6). Over the past year, the company has continued to select young people, office workers as key customers to develop projects.
With this in mind, the unit revealed that it would focus its resources on developing mid-range products. With the best price at prime locations such as Venus (District 5), Ventosa (District 8), Viva Riverside (District 6), …
Evaluation on the real estate market in HCMC last year. Mr. Nguyen Nam Hien – General Director of Hung Thinh Land said. Projects in the mid-range segment have maintained their position since 2016. In addition, to contribute to the reduction of population pressure for the city center. And to promote the advantage of cheap land prices help improve product quality. He gave advice to the owner. It is developing its projects in the neighboring districts and neighboring provinces such as Dong Nai, Tay Ninh, Vung Tau, etc.
2018 will be the year of M & A
In the last two months of 2017 and early in 2018. HoREA brings the forecast of the trend of cooperation between enterprises is indispensable. Mergers and Acquisitions (M & A) will boom this year.
The important reason is the successful implementation of the national resolution on the resolution of bad debts. In addition, foreign direct investment (FDI) and remittances continue to pile on. And keep a very important position in the market of Ho Chi Minh City.
“A modern real estate market always requires enterprises to change and change direction to suit the market demand. In addition, internally must build corporate culture, enterprise spirit. And show good responsibility to society and to customers. Technological revolution 4.0, the Internet occupies an important position and the robot gradually replaced human. The trend is now green real estate projects, friendly environment, safe to meet the needs of more and more modern life of residents, HoREA said.
You are reading the article Highlights HCM Market in 3 years in the Real Estate category at https://realestatevietnam.com.vn/. Any information sharing, feedback please contact through Hotline 0909890897 (24/7) or email to firstname.lastname@example.org.