Saigon real estate will come back

The prospect of the real estate market 10 years ago returned many investors worried

Land prices in the suburbs of Ho Chi Minh City are being pushed up. People have land to celebrate, but also many people worry about the cycle of 10 years ago are back. This is the phenomenon of real estate bubble has caused many people to stand up and even lose white.

The price of land in the areas near HCM City has been pushed up, equal to the peak of 2007 (the phase of virtual land suffered the most damage except so far).

In the central districts of Thu Duc, District 9, Binh Tan District, District 12, Binh Chanh District, Nha Be, etc. The asking price has increased by an average of 20% -40% compared to the same period last year.

Land prices in suburbs, cities and downtown districts have peaked in 2007

Land prices increase due to the project, due to speculation is making the experienced investors also shy.

Specifically, the land price in Ha Be has increased to VND25 million/sqm, nearly the peak of 2007. In this locality, the price is high but the infrastructure here is not commensurate with the price of the market.

In the East, land prices in this area is the strongest. And it reached the peak of the feverish 10 years ago.

The hottest destination is Lo Lu Road. The road is located far from the center of district 9, but is located near the super project is deploying, so the price has increased rapidly.

One year ago, the land price in this area was only VND 12-15 million / sqm. Now it is up to VND40 million/ sqm

Nearer to the center, the Le Van Viet road recorded a 65% increase. Land price from VND 45 million / sqm at the beginning of the year. Now, after about 6 months, the price has risen to VND65 million / sqm.

According to CBRE, land prices should rise sharply. This is due to the fact that some infrastructure projects have been completed this year. This increases the connectivity between the cities. .

Other research units also predict that: In 2017, the price of land near the city will continue to be a hot spot. With the wave of price increases, the new wave stronger.

It is noteworthy that the market has just recovered 3 years. But land prices have come back to levels at the outbreak of 10 years ago, which is rare.

Previously, people were expecting more land in District 2 or District 7. Where the infrastructure can connect well with the center.

Currently, the fever dragged to the area near Can Gio, Nha Be, Cu Chi, … is not normal. The real situation of land prices in HCM City increased rapidly, making investors have much experience in the industry.

Mr. Pham Cao Cuong – An investor in District 9 said: “After a period of hunting the land to make a profit. So far I think I need to be more cautious. The market has begun to show signs of increased dizziness and can burst the bubble anytime. When almost buyers of land are mostly sold for profit, few have the real need to live in such remote areas. “

What is the value in Ho Chi Minh City market?

In the report submitted to the Prime Minister on real estate market in early 2017, Ho Chi Minh City Real Estate Association (HoREA) has emphasized that HCMC real estate market is in the period of decline. However, in the segment of land is unusual and there are signs of the “bubble” on the price.

HoREA’s report states that after the crisis, the market has been frozen. Real estate has recovered and grew again from late 2013 to now.

However, in the first quarter of this year, the market showed signs of slowdown. The decline is most apparent in the luxury segment. With the number of successful transactions reduced by one third compared to the same period in 2016.

According to HoREA, the overall picture of the market is still very risky. Typically there is a phase difference supply – demand, mainly deviated from the luxury segment and resort vacation.

The abundant supply of high-end projects and resort vacations is causing market imbalances

In particular, HoREA also pointed out: The market has the phenomenon of “virtual fever” in price in the land segment in the district and district. After these areas are rumored to be in the county or there will be super projects going to invest.

Many experts, professional investors and local brokers have experienced the earthquake in 2007. They know how to pump, blow, pushing the price to make it scarce.

Make buyers believe that there is a real fever in the market. But in fact, areas like that are being priced. Because its real value is probably only one third of the market price.

In fact, many people after a loss due to soil “freeze” now to shake the price. There are cases where the price of “rise”, but no goods to sell, causing buyers to feel “thirsty” goods

In addition, the giants are gathering land to develop their super projects making a large number of speculators run around the surrounding area to be able to eat and making land prices in those areas increase drastically.

Le Hoang Chau, Chairman of HoREA, warned: “If there is no measure to prevent this phenomenon in time, there will be many risks. The investors only entiled benefits, but what disadvantage is the people, banks, and even the market suffering in the long run.

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