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The housing market will continue to grow

The housing market will continue to grow

In the latest report on real estate market, Vietnam Real Estate Association (VNREA) said: “From present to the end of 2017, the number of housing transactions will continue to develop and will grow in both trends to buy house to invest and to stay. Among them, the house for the middle-income is the most attractive segment.”

According to VNREA, the general assessment of the real estate market in the early months of 2017 shows that the legal system is more complete, policies are more practical, timely. As a result, the real estate business increased by 3.86% (the highest rate in five recent years – according to the General Statistics Department). The number of trading volume continued to stabilize, liquidity improved, inventories decreased, commodity structure was adjusted to suitable to the market demand.

Trading volume increased 13.7%

Statistics data of trading floor of Real estate association shows that real estate transactions in Hanoi, Da Nang, Nha Trang and Ho Chi Minh City in the second quarter increased by 13.7% compared to the first quarter.

In particular, in Hanoi, there are about 6,700 new apartments are opened for sale, mostly in the middle segment, from projects such as T & T Riverview, Viet Hung green Park, Ecolake View … High-end supply are from projects offered for sale previously which are opened the next phase such as Vinhomes Green Bay, D’. Capitale, Vinhomes SkyLake, My Dinh Pearl. At present, there are no more new cheap housing, social housing projects.

Total transaction of apartment market reached 5417 apartments, equivalent to 406,240 m2 with a total value of 11.375.2 billion. Leading with low-cost housing segment accounted for 55% of total transactions.

All segments are increasing 2-3% in primary prices, depending on types of project. The highest increase lies in the projects with prime location, full of facilities for residents.

In the remaining quarters of 2017, the number of new completed project is expected to reach more than 20,000 units, of which 50% is of the middle segment, the West and Southwest regions are expected to continue to dominate the supply.

Other regions such as Tay Ho or Dong Da, Ba Dinh will also receive more high quality projects. Expected sales volume is expected to increase and be dynamic in all segments, especially the mid-range segment as some famous developers will launch large volumes in this segment.

The middle-range segment dominates the market

Similar to Hanoi, in Ho Chi Minh City, total trading volume of apartment in 2nd quarter of 2017 reached 9,827 units (751,385 m2), total transaction value is about 25,889.85 billion. The leading segment is middle housing, which accounts for 47% of total transaction volume. This is the leading supply segment, mainly concentrated in the East, South and West of the city.

It can be named some projects such as The Art, Citisoft, Celadon City, Green Town Binh Tan, Sun Square, Conic Skyway Residence, the Golden Star … The market also has many high-end projects being introduced such as Sophia Garden, Lancaster Lincoln, Sensation, Republic Plaza …

The average price offered for sale was USD 1,600/m2, up 1-3% compared to the previous quarter and increase 13% yearly. For the high end segment, the offered price increased by 7.9% yearly thanks to high quality projects, especially in District 2.

From now to the end of 2017, the supply of apartments in the city can reach 25,000-27,000. The average segment will still dominate the market. The improvement in infrastructure and public facilities will attract market’s attention of the West of the city.

In other provinces, the resort sreal estate segment continues to grow rapidly and attract large number of real estate conpanies, including famous investors such as Vin Group, Sun Group, FLC, CEO, Eurowindow …

In Nha Trang, there are more 40 real estate projects (Movenpick, Vogue, VOT, Hung Thinh, Panorama …) which supply to the market nearly 10,000 products appreciated for its quality of profitability. In the second quarter, this segment reached 1,589 transactions, doubling compared to the first quarter.

In Da Nang, with the increase in a series of resort real estate projects such as Cocobay, Hoa Binh Green, Sentosa, Ngoc Duong … with large-scale advertising campaigns, good sales policies making 1,339 products be sold out.

VNREA said that in 2017 and the following year, the real estate market will continue to be stable at the start of the year and somewhat stronger.

However, the market still has some potential risks to be controlled. The risk of real estate bubble is still existed. The imbalance of supply as the market is developing strongly in the high-end real estate segment but lack of social housing supply, small and medium-sized commercial housing at affordable prices, cheap rent apartments… meeting the real needs of the low- average-income in urban region.

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The housing market will continue to grow

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