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The optimistic forecast for the real estate market in the last months of the year

Real estate businesses

In the last months of 2018, HCM City real estate market is expected to flourish in many different real estate segments.

Intermediate housing continues to play a dominant role in the market

According to the Hochiminh City Real Estate Market Report 8 months of 2018 announced by HoREA, in the past 10 years, real estate market in Ho Chi Minh City. Ho Chi Minh City interwoven the upswing – crisis – recovery – growth … as the hot market phase led to the “bubble” in 2007; Freezing until the end of 2009; recovered from late 2009 and hot development led to the “bubble” 2010, early 2011 …

Le Ho Chau, chairman of HoREA, said that in the first months of 2018, the real estate market in the whole country showed signs of decline both in supply and volume of transactions. Particularly TP. Ho Chi Minh City has a clear sign of decline. Total supply of housing products of the projects decreased by 44.5% (in which, the high-end segment decreased by 25.9%, the middle-class decreased by 32.6%, the average decrease by 69.7%). .

This is a manifestation of the supply – demand difference phase and also the most obvious indicator of unsustainable real estate market development.

“Because in the real estate market sustainable development, balance, the top is the segment of affordable apartments, affordable prices, followed by the middle class apartment, the last apartment luxury. M & A activity has declined, with only 6/15 eligible project approvals. Foreign direct investment (FDI) into the market the city continued to grow strongly, attracted $ 2.2 billion, ranked first, “Chau said.

Medium to high class apartments will continue to lead the market in the last months of 2018
Medium to high class apartments will continue to lead the market in the last months of 2018

According to HoREA, from the beginning of 2017 to June, 2018, there appeared two phases of virtual land price spontaneous land, agricultural land illegally subdivision in some coastal districts and suburbs. The virtual land price spontaneously, agricultural land subdivision illegally also appear in the area around the Long Thanh airport project and in three areas are expected to become special economic zone Van Don, Van Phong Phu Quoc.

In recent years also appeared some new real estate products such as condotel, hometel, officetel, serviced apartment, shophouse. In particular, there are condotel condotel type in resort resorts where the State has no management solution and orientation development appropriate. Spontaneous virtual land prices, unclaimed agricultural land and condotel have attracted a portion of the credit and investment capital of the society, reducing the capital investment in apartment projects.

HoREA Chairman said that the hot condotel fever and fever virtual land prices have been controlled but the consequences are complicated and complicated. In addition, the shortage of low-priced commercial apartments, social housing, … are potential factors causing social instability.

In addition, there is a large fraction of consumer credit is used for the wrong purpose, diverting investment into the real estate business is more risky. At the same time, the real estate business environment is not transparent, unhealthy, there are still signs of “group interests”, “capitalist capitalism” has the effect of discouraging genuine business enterprises … .

Representatives of HoREA said that the real estate market will flourish in the last few months of the year as the residential segment will grow sharply, housing will continue to play a dominant role in the market, high housing The level also develops in the direction of creating differentiated and unique levels, integrating many utilities and services.

In addition, the trend of building smart neighborhoods, intelligent buildings, smart apartments, using renewable energy, environmentally friendly, security, safety first of all on fire prevention will be very be respected.

In addition, the segment of social housing, trade unions will have capital and land to develop from the fourth quarter of 2018 onwards (it is expected to promulgate new building standards to facilitate the development of housing. The price of the land segment will be spontaneous, the agricultural land will be illegally subdivided and the illegal areas will be reviewed in accordance with the law continuing the trend of slowdown and more reasonable price.

8 recommendations for real estate business

According to representatives of HoREA, while the supply of land fund project through the investor compensation for ground clearance is difficult, the market is expected to supply through the plan to change the use of 26,000 hectares agricultural land, including about 2,200 hectares of residential land; the city plans to bid for 127 urban infrastructure projects, and VAMC’s plan to implement the National Assembly Resolution 42 on piloting bad debt, many of which are secured by the project. move, promote the market for project transfer (M & A) development stronger.

Real estate businesses
Real estate businesses should note the 8 recommendations below

In addition, when forecasting real estate trends until the year 2019, HoREA also issued 08 recommendations for real estate enterprises such as business efficiency and transparency in corporate governance. ; Always put the interests of customers above all, keep the prestige, ensure the quality of the works …; strive to be a professional and competent real estate developer in the market segment and product of its choice; Attention should be paid to the segment of the small and medium-sized housing market, with affordable prices; Increase equity to enhance internal resources of the business.

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