The pushes for real estate in 2018

HCMC Real Estate Market 2018 will thanks to the unique mechanism to make a pushIn 2017, the real estate market in Ho Chi Minh City has changed in a more positive direction.

Typically, in the 12 months of 2017, 80 housing projects have been established by the City Department of Construction confirming eligibility for capital mobilization and construction grants, with total of 38,583 houses, of which 34,131 apartments and 4,452 apartments are low-rise. Total amount needed to mobilize is nearly VND75,569 billion.

Mid-market segment dominates the market. This proves that the market is growing steadily to serve the needs of the majority of the population

Among them, the high-end segment accounted for 26%, leading by the middle segment accounted for 48.8% and the remaining segment accounted for 25.2%.

Thus, billions of affordable apartments are dominating the market. This is a good signal, because investors and businesses have the navigation of their products. And many people have real needs in this regard.

New leverage comes from the city government

Le Hoang Chau, Chairman of HCMC Real Estate Association, said. This can be considered a success for the real estate market in 2017 and create a thrust for the market in 2018.

More specifically, the market will have new levers from the government. For example, the City People’s Committee is planning to expand its population outside the coastal zone to reduce pressure on the core area. As the central area has become increasingly crowded, the periphery is growing.

To successfully implement this plan, the People’s Committee of HCMC has invested in transportation infrastructure to the coastal area. And prepare a large amount of land for real estate developers in the fringes.

This will be a good condition for many people to buy a house at a price that is consistent with the current income of the majority of the working population.

Thu Thiem new urban area will be a prominent feature of HCM because the land is a modern new urban area, possesses many super-sized projects.

Besides, Ho Chi Minh City also has many projects to offer real estate. For example, the HCM City People’s Committee has approved the design of a separate urban area at the rate of 1/500. Located in the junction of Vo Van Kiet – Highway 1 in Binh Chanh District.

The project mainly aims at developing a number of new residential areas along National Highway 1A. To develop the convenient transportation for the concentrated park with the complex of commercial center – high rise building to create a scenic aesthetic and modern for the West Gate of the city.

In addition, in 2018, the market will also receive many more hyper-projects. Especially in Thu Thiem new urban area. Since this area has recently completed the internal traffic system for enterprises to develop the most advantageous.

Besides, Ho Chi Minh City will also invest to develop the whole southern city. And in the heart of the district is Binh Chanh District and Can Gio District with a series of bridges to Can Gio, together with fast transport system.

Other leaps from infrastructure, connectivity, smart urban, …

2018 will be the development year of the smart urban strategy for 2017-2020 with a vision to 2025. The City People’s Committee has outlined this plan and will begin implementing it in 2018.

Accordingly, the development of the city into a smart city and join the intelligent marketing system in the world. It will contribute to accelerating the personal income of the fast-moving segment with faster and more affordable segments.

The development of a smart urban also helps the real estate market in Ho Chi Minh City is better seen in the eyes of foreign investors. Projects on infrastructure, intelligent transportation, health care, education, etc will gradually form. These are important factors affecting real estate market.

Rapid population, fast urbanization will also be a good condition for HCMC real estate development in 2018.

In addition, starting from January 15, 2018, Ho Chi Minh City has been implementing a specific mechanism for economic and social development. This will also be a favorable condition for the property market in 2018.

The population of 13 million people is also strong for the property market in 2018. With its existing population base and fast urbanization rate, Large cities like HCMC will open up a large and diverse real estate business.

Along with the large population and increase, the income of the people in Ho Chi Minh City is also high. Particularly, people with incomes have reached the middle level more and more.

Particularly in HCMC, the per capita GDP of this locality is expected to reach $ 5,000 by 2020. This will create a strong push, contributing to the increase in demand for home ownership. This is the opportunity for real estate developers in this megacity 13 million people.

The bright spot for the HCMC real estate market in 2018 comes from continuing the connection momentum that 2017 has made. Currently, the size of the HCMC real estate market is considered to be out of the city’s administrative boundaries. And has spread to the neighboring provinces. This should be further promoted in 2018.

The current spread has reached the territories of the “South East” including Dong Nai, Long An and Binh Duong provinces. This impressive expansion will create more demand, expand and stimulate the scale of the property market for the city.

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