In the first six months of 2017, the HCM City Department of Construction has confirmed 32 housing projects in the future with a total of 16.506 apartments and low-rise houses eligible for capital mobilization. With this supply, competitive pressure will become more acrimonious.
The first half year of development in convulsion
Contrary to many agencies’ forecasts, it is difficult for the real estate market in 2017, despite the fluctuations of the real estate market in the first six months, to show a lasting development trend.
In particular, according to reports from consultancy units and HCM City Real Estate Association (HoREA), in the last 6 months, the city has developed 4,92 million sqm floor housing, bringing the total area of the house In the city to 157 million sqm, average 18,47 sqm per person.
Firms operating in the field of real estate also came out with exponential growth. When 18.000 enterprises were newly established in the last 6 months in HCM City, about one-third worked in the real estate business.
In particular, the first 6 months continued to be the playground of the apartment segment when the market had 14.754 apartments and 1.752 low-rise apartments launched with the total value of $1,4 billion.
With the competition is increasingly acrimonious, the business must have a very basic transformation, full social responsibility, responsibility to customers …, can sell goods.
Mr. Tran Duc Vinh, General Director of Tran Anh Long An Real Estate Joint Stock Company
The high-class segment has 5.164 apartments, accounting for 31,3%, mid-range and the popular segment has 11.342 apartments, accounting for 68,7%. This is a good sign that the investors have strongly restructured to increase the volume of small and medium sized apartments (1-2 bedrooms), meeting the real needs of the majority of people have medium and low income.
In addition to the bad news due to the information that 60 proposed projects have been stopped, or the spread of ground and indicated by the hands of the “brokerage”. The real estate market in the South in the first half of the year also showed positive signs, as many real estate projects such as Kenton Residences project in District 7, Ho Chi Minh City have resurrected, causing real estate inventory to fall sharply.
Nguyen Nam Hien, General Director of Hung Thanh Land Company, said that the market is still stable with good – bad division so there is no worry about bubbles in the next time.
What is special of the second half of the year?
According to reporters, Ho Chi Minh City real estate companies are starting to introduce new directions to prepare the goods for the last months of the year. Although the demand for houses at this time is always high, with the companies massively marketed at the same time will create a fight to attract customers.
Read more: Apartment for Sale in Ho Chi Minh City
In the East, businesses like Thu Duc House, Him Lam Land, NovaLand, Hung Thinh Land … are expected to launch new projects. In particular, the source from a large investor today, in the fourth quarter of 2017, the company will launch a super project with about 13,000 luxury apartments in Binh An Ward (District 2 ).
In addition, the South will also be an area that is expected to grow again with new projects, particularly the Kenton Residences project, with a net worth of $70 million to restart and market more than 1.000 apartments. The price is about $74 thousand per apartment.
The West is also businesses such as NovaLand, Hung Thinh Land … with plans to expand in the second half of the year.
In addition, land and houses in the area will continue to the throne when Tran Anh Long An Real Estate Joint Stock Company, Cat Tuong Duc Hoa, Hien Vinh…continue to announce the launch of goods to the market.
Tran Duc Vinh, general director of Tran Anh Long An Real Estate Joint Stock Company, said that the market in the next 6 months will remain in the cycle of growth, but will continue the trend of the division. In particular, the market will have a strong shift to the affordable segment, meeting the real needs of the majority of middle-income people.
“With the competition increasingly fierce, the business must have a very fundamental transformation, showing full social responsibility, responsibility to customers … can sell goods,” Vinh said.
Meanwhile, Nguyen Dang Quynh, general director of Hien Vinh Real Estate Joint Stock Company, said that it is very unlikely that there will be any “bubbles” in the near future due to increasing interventions timely and effective of the State.
In addition, businesses are also trying to restructure their investment, reshape their products in line with the needs of the market and secondary investors are more alert and knowledgeable about the market.
You are reading the article “The ” Hot Spots” In The Ho Chi Minh City Real Estate Market Of The Second Half Of The Year” in the section “Real Estate Market” on the website: www.realestatevietnam.com.vn
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