HCMC real estate market sees a positive signalAlong with the slowdown of most economic sectors, the real estate is not out there. However, the return of real estate will be inevitable. And the HCMC market is no exception.
In the final report on the socio-economic situation of Ho Chi Minh City in 2017. The real estate market of the city is gaining positive numbers. Inventory of real estate has started to decline.
And expected in 2018, the growth rate of real estate will be 8%. It accounts for about 5.5% of the service sector and will positively impact other sectors. As finance, banking, building materials … especially budget revenue.
Specific figures reflect the market situation
Last year in the field of real estate across the country has added 80.2% of newly established enterprises. While the number of enterprises declined 26.5%, the number of temporary shutdowns declined by 39%.
Foreign direct investment (FDI) flows into the real estate sector is also high and increasing. Many foreign investors also set up a long-term strategy to invest in our country. Their purpose is to catch the market and to take advantage of the opportunity. With a high absorption market.
Along with the growth of the market, the number of successful transactions has also increased. The statistics of the Housing Management and Real Estate Market under the Ministry of Construction show. Last year in Ho Chi Minh City has more than 1,900 transactions successfully, up nearly 2 times compared with the same period last year.
The number of successful transactions has increased, reflecting the current market situation in the growth cycle. Not only the recovery in the type of apartment, but land, villas, .. are signs of growth.
Successful sales are concentrated in high quality projects. The price is reasonable, plus the infrastructure is complete.
The money is pouring into the real estate market
Credit balance of real estate now is about 360 trillion (twice the number) when the market began to crumble in 2009. And exceeded the number at the time the real estate market at peak (VND310 trillion ).
However, the biggest difference with the “land fever” period is real estate credit over the past time mainly on the construction and completion of housing projects for sale and lease. These are projects that meet people’s needs rather than real estate.
The increase in real estate credit has contributed to the liberalization of inventories such as construction, steel, cement, and so forth. Promoting the development of the sector and creating jobs.
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There are still worrisome issues left
The favorable conditions for real estate development over the past is not controversial. But there are no issues worth worrying about. The most outstanding issue in the past year is still the excess of real estate supply.
According to an unofficial figure. In the end of last year, over 60 trillion real estate surplus. Meanwhile, many projects are under construction and are about to open, Especially the middle and high class projects.
This will cause the absorption of projects of the market will slow down in the coming time. Because the current market size can not absorb quickly and exhaust the current supply.
Especially when the supply is really big but not suitable to the needs of the people. Of course, when launching the product, businesses have to carefully study the demand and absorption capacity. But the demand of the people now is in the middle segment more. However, the price of the current property is considered to be quite reasonable to stay as well as to invest.
In addition, home buyers are now very easy to access credit. As for the developers, their products are also increasingly diverse. The quality is higher and the price is also more reasonable.
In addition, the interest rates of banks now compared to the “land fever” is much lower. The low and stable interest rates are also opportunities for the real estate market to develop.
When the market enters a new period. The owners also change their product strategy as well as reach their customers. New products are expected to meet the needs of people, helping to reduce the risk of inventory in the previous period.
Admittedly, real estate is still the investment channel that so far the people put the most faith. Many investors have idle money they always care about the first property. Because it helps them preserve assets in the context of financial markets – currency fluctuations.
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