In the first phase of 2017, the HCM City Department of Construction has licensed 32 housing projects to be built in the next two years. With total supply to the market will be 16506 apartments and low-rise housing eligible for capital mobilization. This supply will push up the pressure of competition becomes more acute.
The first 6 months of the year was strong
Contrary to many people’s predictions, the real estate market in 2017 will be in a difficult situation. During the first 6 months of the year, although the market has strong fluctuations, but still showing a strong development trend.
In particular, as reported by Ho Chi Minh City Real Estate Association (HoREA) as well as consulting units. In the first 6 months of 2017, the city received an additional VND4.92 million/sqm of housing. Raising total floor area is up to VND157 million/sqm. Raising the average area is up to 18.47sqm / person.
Real estate companies, especially brokerage firms, have also emerged exponentially. Of the 18,000 enterprises newly established in the last 6 months in HCMC, up to one third of them operate in the real estate sector.
And in particular, the first 6 months of the year continues to be a private playground bearing the impression of the apartment segment. When the market received more 14,754 apartments and 1,752 low-rise buildings. With the total value to mobilize is up to VND30.599 billion.
Among them, 5,164 apartments in the high-end segment, accounting for 31.3%. Medium and high class segment reached 11,342 units, accounting for 68.7%.
This is a good sign that many investors have begun to restructure their products strongly. Aiming to increase the size of medium and small apartment (1-2 bedrooms segment of medium. Meeting the real needs of most low and medium income customers living in the city.
In addition to the market fluctuations, the competition is also more acute
In addition to the bad news due to information 60 projects will be stopped. Or the land fever spread rapidly and is believed to be caused by the “trigger” land. The Southern real estate market in the first half of the year still has many positive colors.
For example, Kenton Residences (District 7, HCMC) has been revived. This is a signal that the forecast of inventory inventory will decrease.
Assess the market in the last 6 months of 2017. Nguyen Nam Hien – General Director of Land Company Hung. At present, the market is still stable, there is intervention from the government, from the state. So bubbles of the market in HCM City is not worrying.
Market developments in the second half of 2017
According to the study, many real estate companies in Ho Chi Minh City began to find new directions for their own. They have prepared quite carefully for the release of the last months of the year. Although the demand for housing at the end of the year is very high. But there are too many companies out there to create a fierce competition in the market.
The big companies operating in the East such as Thu Duc House, HimLam Land, NovaLand, Hung Thinh Land, … Expected to launch their new projects. In particular, sources from a reputable investor today said. In the fourth quarter of 2017, the company will sell a super project with about 13,000 luxury apartments in Binh An Ward (District 2).
In addition, the South is also a region that is expected to grow again. With many new projects, especially Kenton Residences when pumped VND1,600 billion to restart. Expected to launch more than 1,000 apartments with the price of VND1.7 billion per unit. The West is also many businesses such as NovaLand, Hung Thinh Land … special interest in the last 6 months.
In addition, land and houses in this area will continue to throne. When many real estate companies such as Tran Anh Long An, Cat Tuong Duc Hoa, Hien Vinh … will continue to expand.
Tran Duc Vinh, General Director of Tran Anh Long An, said that. The market in the past six months is still in the bull market. However, the market will have a strong shift to the popular segment of reasonable value tomeet the needs of the majority of middle-income people.
“With the competition more and more fierce, enterprises must have a very basic transformation, showing full social responsibility, responsibility to customers …, can sell goods,” Vinh said. Meanwhile, Nguyen Dang Quynh, general director of Hien Vinh Real Estate Company, said. The market will hardly be able to “bubble” in the near future. As the state adjusts the market more and more closely.
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