HCMC real estate market in 2017 successfully and the basis for the year 2018 boomOverview of the real estate market in HCMC last year. Some analysts say. In 2017, HCM City continues to record stability and growth in some segments.
At the same time, the market is becoming more transparent as more state involvement in monitoring and regulating. This is a positive signal for a stable, long-term and sustainable real estate market.
Accordingly, the land market in 2017 will have more supply than 2016. Which is most prominent in the East with District 9 and some coastal districts
Specifically, in 2017, 7,171 new land plots were launched to the market (2.2 times more than in 2016). The transaction was extremely vibrant with an impressive consumption rate of 95% (6,851) increased about 4 times compared to 2016.
According to statistics, the number of sales that the market achieved in the past year at the effective threshold. Especially the flat land in the area adjacent to Ho Chi Minh City. Successful transactions with high rates received much attention of investors.
The townhouse / villa segment recorded a stable supply of 2,946 units (96% of that in 2016). And East is still the most prominent segment in this segment.
However, because the selling price was pushed too high in the past year. This segment recorded a decline in consumption of 67% (about 1,985 units)
The West surpassed the East in terms of supply
Total supply to the market last year continued to increase, providing the market about 41,388 units. In particular, Grade B and Grade C is still the main market segment, accounting for 78% of total supply.
Contrary to the monopoly of the East for many years. This year, the market has “changed” when the West has surpassed up to 43% of the supply. And lead the supply to the whole market.
Market penetration was also impressive at 88%. In particular, Grade B apartments have the highest absorption rate (92%).
This also reflects the fact that. Demand for high quality housing in HCMC is increasing.
Also in the real estate market, after a long period of development. In the past year there has been a steady decline in almost all segments.
In particular, the condotel market, in 2017, this segment provides the market about 14,741 units (up 12%) over 2016. But its consumption only reached about 33% of the supply (about 4,821 units) by 55% compared to 2016 (8,726 units).
According to DKRA, there are certain concerns about the supply situation of this segment. The cause is that investors are concerned about the policy of commitment to profit. And expectations of legal ownership changes to the condotel segment.
However, with projects of outstanding quality and invested by reputable developers such as Vingroup, … The consumption of these projects is not worth paying attention.
2018 will be the boom year of HCMC real estate
Economist-finance Dinh The Hien evaluation of 2018. Real estate market will remain an investment channel chosen by many people for its benefits. But there will be differentiation and selection in the market based on demand and financial capacity.
Consumption this year will remain stable but will not be able to hold the price increase as last year. The capital inflow into the real estate market is still high, mainly from credit, banking, individual investors, foreign investment through cooperation and M & A and the stock market.
On the other hand, the Grade B, C Grade segment will continue to be the leader and attract the attention of the majority of buyers.
The townhouse / villa market will also maintain a stable supply of 3,000-4,000 units. According to CBRE Vietnam’s latest report on Ho Chi Minh City. The East and South areas will be the two leading markets for this segment.
Duong Thuy Dung – CBRE Vietnam’s senior director. 2018 will be the boom of the real estate market in HCMC. And there will be many new projects entering the market. Because many developers have been developing their projects since 2017.
“Intermediate products will continue to dominate the market with a small supply of high-end consumer electronics, coupled with a strong supply of this segment. This will form the basis for a sustainable development. Because it suits most customers, “Ms.Dung said.
M & A activity will also be stronger in the new year. And the market will continue to be stronger in the implementation of the country’s resolution on dealing with bad debt.
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