No Comments

Real Estate 2018 Will Increase In The Segment?

Real Estate 2018 will increase in the segment?

Apartment sales in 2018 will increase by an average of 3%, of which the luxury and luxury segment will see a 5% increase, while the mid-end and the mid-end segment will see a growth of less than 1.5%.

This is CBRE’s statement on the HCM City real estate market in the fourth quarter  / 2017 and real estate market forecasts for 2018.

In 2018, mid-end segment occupies a large proportion

According to CBRE, 2017 marked a shift in the market of apartments sold from strong growth to sustainable. Although the number of units offered decreased, the structure of products suitable to help absorption of the market is still good.

In the fourth quarter  FY2017, the market received an additional 8.559 units, an increase of 12% on a quarterly basis, bringing the total yearly supply and the total stock of 31,106 units and 228,903 units respectively. Total supply in 2017 decreased 18% over the previous year, enabling the market to absorb inventory from 2015 and 2016.

Real Estate 2018 will increase in the segment?
In the fourth quarter of 2017, the market received an additional 8.559 units

“This is the stage where products are more invested in design, usability, materials to meet the increasing demand of customers. Sales and marketing strategies are well prepared, “CBRE said.

Meanwhile, in terms of the proportion of product segments, the mid-end segment accounted for 64% of total supply in 2017. This shows a strong shift of markets to meet buyer demand for housing. and create the foundation for a sustainable market. In terms of location, the apartment market in HCMC continues to expand to the East and South in districts 2, 7, 9, and Binh Thanh.

Remarkably, the situation of apartment consumption in Q4 and 2017 is quite satisfactory in the segment. Specifically, in the quarter 4/2017, the market has 8,934 apartments were consumed, up 23% over the previous quarter and down 29% over the previous year. Total sales in 2017 reached 32,905 units, down 5% from the previous year. However, this is the first year in five years to record the number of units sold more than the total number of new units sold in the year.

Real Estate 2018 will increase in the segment?
By 2017, the average selling price is the US $ 1,558 per square meter, up 4% from 2016

Regarding prices, the average selling price in the primary market in the fourth quarter  FY2015 was $ 1,564 / sqm, up 4.8% q / q and down 3.6% y / y. The reason for this significant decline was due to the increase in mid-segment supply in Q4 FY2017. For the whole of 2017, the average selling price was  $ 1,558 per square meter, up 4% from 2016.

In 2018, CBRE expects the mid-range product to continue to account for a high proportion of moderate amounts of high-end and luxury segments introduced, laying the foundations for a more sustainable development.

In 2018, the East will lead the real estate market in HCM City

In spite of the strategic orientation of urban development, HCM City will develop in all directions of East, West, South and North, but with the advantage of being the connecting lane of the entire South East region, the policy Infrastructure development in HCM City seems to be concentrated in the East.

At present, most of the traffic of Ho Chi Minh City through the East, such as Saigon River vault, Vo Van Kiet, Thu Thiem bridge, Sai Gon 2 bridge connecting the city center with district 2 and District 9, or Pham Van Dong Street connects Tan Son Nhat Airport with Thu Duc District.

Real Estate 2018 will increase in the segment?
In 2018, the East will lead the real estate market in HCM City

Not only that, the Ho Chi Minh City-Long Thanh – Dau Giay expressway also connects Dong Nai with Dong Nai directly, and Ben Thanh – Suoi Tien metro project (line No.1) is under construction. will officially put into operation in 2020, also stretching from Dong Nai, Binh Duong, through the East to the center of Ho Chi Minh City.

Recently, Ho Chi Minh City has the policy to continue to promote investment in infrastructure traffic in the East. Specifically, according to the Department of Transport – HCMC, in 2017 – 2018, three important traffic projects in Ring Road 2 will be implemented with a total investment capital of over VND13,115 billion. In particular, two traffic projects of the East urgent need to apply specific mechanisms to complete soon is the section from Phu Huu bridge to the Hanoi Highway and from the Binh Thai intersection to Pham Van Dong.

Recently, the value of real estate in the East was re-energized with the launch information back to the Rach Chiec Sports Complex. This is a series of Olympic sports, size 180 ha, total estimated capital VND34,000 billion, was built to serve the SEA Games 31 (2021).

Real Estate 2018 will increase in the segment?
Currently, the real estate giant has a large project in the East of Ho Chi Minh City

The breakthrough in infrastructure has made the face of urban East of HCMC completely changed appearance. At present, most real estate agents have large projects in the East such as Dai Quang Minh with Sa La urban area, Vingroup with Vincity project, Novaland with a series of projects in District 2, District 9 , Him Lam Land with Him Lam Phu Dong Project, Him Lam Phu An and a project of more than 120 hectares in District 2 is expected to be launched in 2018. Besides, Thu Duc House, Khang Dien, Dat Xanh, Phuc Khang, Hung Thinh, Nam Long …, also have large projects in this area scheduled to be announced in 2018.

According to Le Hoang Chau, Chairman of HCMC Real Estate Association, what is happening, in 2018 and the next years, the East will be the area leading the real estate market in Ho Chi Minh City. HCM. By not only infrastructure, the East is also attracting strong FDI flows of HCM City with large corporations from Japan, Korea, France, USA … have poured capital here.

You are reading the article Real Estate 2018 Will Increase In The Segment? in the Real Estate category at
www.realestatevietnam.com.vn/. Any information sharing, feedback please contact through Hotline 0909890897 (24/7) or email to info@realestatevietnam.com.vn.
Special thanks!

Real Estate 2018 Will Increase In The Segment?
Review

Comments (0)