Interest rates are on the downward trend, investors are constantly promoting, the flow of foreign capital is strong and the number of real estate companies in the real estate sector has been increasing rapidly, which is a factor that helps Ho Chi Minh City real estate market become more optimistic in the last months of the year.
Many good signals
According to the economic report of 8 months 2017 of the Department of Planning and Investment of Ho Chi Minh City, in the last 8 months, Ho Chi Minh City has 26.614 newly established enterprises. Of which, the real estate business accounted for the highest proportion of 41,4%, the registered capital was up to $6,5 billion.
In addition, in 8 months 2017, the city also attracted $788,19 million of foreign direct investment (FDI, excluding capital contribution, share purchase), of which real estate business accounted for 15,4 % (122 million USD). The United States overtook Singapore as the top investment destination in the country with $249,28 million of registered capital, accounting for 32,1% of total FDI inflows to HCM City in eight months.
Experts said this is a big step for Ho Chi Minh City’s real estate market to develop in the last months of the year because with the large number of newly established businesses and the strong flow of FDI, will create new supply for the market.
The last month of the year is the time when the city in general and the real estate industry in particular sprints to complete the plan targets. As a result, the real estate market will welcome new capital flows, as well as newly established ones” said Su Ngoc Anh, director of the Ho Chi Minh City Department of Planning and Investment.
In addition, according to analysts, real estate market will receive more “clicks” as more banks open credit lines and interest rates may decrease in the last months of the year. This is grounded because inflation is under control, while the liquidity of banks is plentiful, based on the fact that the balance of deposits from the State Treasury remained high at the commercial banking system; The State Bank continues to buy dollars to increase foreign exchange reserves.
In addition, interbank rates have fallen to the lowest level since the beginning of the year, 0,6-1 percentage points compared to the end of June and down 3-4 percentage from the beginning.
Nguyen Hoang Minh, Deputy Director of the State Bank of Vietnam, said that another factor supporting the real estate market is the stable exchange rate of USD/VND.
“Interest rates with stable exchange rates will certainly affect the psychology of those with real needs. Instead of waiting for prices to drop and depositing money into banks as before, there will be many people looking for and taking advantage of promotions and discounts from investors to buy houses, “said Minh.
According to a report of the Ho Chi Minh City Real Estate Association (HoREA), although in 2016 and the first eight months of 2017, the real estate market has shown signs of slowing down, especially in the segment of luxury apartments of 3 or more bedrooms and real estate resorts, but overall, the market has maintained a relatively stable development.
In the last months of 2017, the market is expected to move in a positive direction, as people’s demand for housing has risen sharply during this period.
In particular, HoREA said that in the period 2016-2020, forecast real estate market will have a strong restructuring, product restructuring to address the phenomenon of phase difference supply – demand.
Accordingly, the market will be phase from a high-end real estate, real estate to resort to residential, small and affordable apartments. This is a segment that has a huge demand and high liquidity.
According to experts, a foothold to help the real estate market spurt in the last months of 2017 and in the coming time, the resolution of the National Assembly on piloting bad debt, including the handling of real estate assets (60-70% of collateral assets) 15/8/2017.
The effective resolution of non-performing loans not only helps solve the bad debt about $13 billion, it also helped many real estate projects to secure their release, creating abundant sources for the buying and selling market, project transfer (M & A).
When coming to the new owners have strong potential and management experience, deployment, these projects will be accelerated deployment, add to the market supply of quality, takes confidence to customers, thereby contributing to the market more sustainable development.
Lawyer Doctor. Bui Quang Tin, CEO of Bizlight School of Entrepreneurs, said that the real estate market is expected to boom in the last months of the year because there are very few new projects opened in the first eight months.
The reason is that many units have gold land fund is being audited by the State Auditor, by October the audit is completed. Therefore, the market expects, after the audit, in the IV / 2017, many new projects will be launched and launched.
A large real estate business also said, from the beginning of this year, this company only sells the old project opened in 2016, no new projects despite land funds are many. The company said that it was not until October to develop a new project.
According to Tran Duc Vinh, general director of Tran Anh Group, for real estate businesses, the market last 4 months always the time of sprint,
Just try to push the inventory of old, moderate to market new products to create momentum for the first quarter of next year, because often the first quarter is always the slowest selling time of the year.
“The real estate market in Ho Chi Minh City in the first eight months has slowed down compared to 2016, but in the last quarter of the year, the market will welcome many new projects. The product line also began to shift from high-end to middle-end to fit the needs of our customers.
Therefore, the real estate market in the last months of the year is forecasted to explode with open sales, with many promotions launched from the investors. With the market enters the buying season at the end of the year, the transaction will be more exciting” Vinh said.
In the same vein, Mr. Sav Ngoc Khuong, Investment Director of Savills, added that Viet Nam has more than 82.000 foreigners living and working, and more than 4 million compatriots, many of them have a special interest in returning home. In particular, this demand will increase at the end of the year, when the number of overseas compatriots returning home, this will be the basis for commercial real estate growth.
You are reading the article The Real Estate Market Expects To Flourishes The Last Quater Of The Year in the Real Estate category at https://realestatevietnam.com.vn/.
Any information sharing, feedback please email to firstname.lastname@example.org, Hotline 0909890897 (24/7).