Ho Chi Minh City Real Estate Association (HoREA) predicts that the real estate market will continue to maintain its recovery momentum and stable growth without major fluctuations.
There will be a strong restructuring
According to HoREA, in the period 2016 – 2020, the real estate market will have a strong restructuring and product restructuring to address the problem of supply-demand distortion which is favoring the high-end real estate segment, real estate resorts luxury resorts, moving strongly to the residential segment, medium and small apartments, affordable prices are in real need, high liquidity; and tight control of credit to overcome the phenomenon of money flow distortions, credit into a number of large enterprises.
With the management and macro-management solutions of the Government and authorities at all levels, especially the legal system has been improved, reforming administrative procedures, creating a transparent business environment, airy, Especially, the implementation of the National Assembly Resolution on the pilot of bad debts with a volume of about $ 13,043,478,000; of which 60-70% will be secured by real estate, will be able to handle bad debts, restart real estate projects are being stopped, clear the market for sale, transfer of projects (M & A).
According to HoREA, in 2016 and the first eight months of 2017, the real estate market has shown signs of the slowdown, especially in the high-end real estate segment of 3 or more bedrooms, real estate resort vacation, but overall the market retains a relatively stable development.
Mr. Le Hoang Chau, Chairman of HoREA, said that the real estate market has experienced a crisis of bubble fever or freezing which has the serious impact on the economy, businesses, banking system, secondary business investors, consumers, and workers.
“The real estate market tends to grow up and down in the same direction with the growth of the economy, which has the fundamental impact of urbanization, urban infrastructure development, first of all, transport infrastructure; having a direct impact of the financial, monetary and credit policies; and the impact of the legal system, economic policy through the process of management of the state management agencies from central to local”, Mr. Le Hoang Chau said.
The real estate market often evolves into an asymmetrical SIN
In fact, the real estate market often undergoes development stages: growth – stable – hot – frozen – quiet – restored and growing again … In particular, real estate fever occurred in 1993; 2001 – 2002; the second half of 2010; Especially the bubble fever “real estate” peaked in 2007; The real estate market was in recession or freezing in 1995-1999; but most heavily from the beginning of 2008 to the middle of 2009, and the period of 2011 – 2013, then the real estate market recovered and grew again in 2003-2006; late 2009 to mid 2010; and the period from 2013 till now.
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HoREA said that over the past 20 years, the operation of the real estate market has gradually shifted to market mechanism under the management and regulation of the State, socialist orientation. As a rule of thumb, the real estate market often evolves as an asymmetrical SIN, depending on: the value law; competition law; supply-demand relationship; policies and macro-regulation mechanisms of the State; behavior of investment and business of enterprises, investors under the influence of policy, mechanism, or by market requirements.
It should be added that the real estate market in the country and Ho Chi Minh City was established in 1987 after the city implemented the policy of selling state-owned houses for rent to tenants, But it really began in 1993 after Congress passed the First Land Law and Housing Ordinance, which created the initial legal framework for land use rights and housing ownership.
“The real estate market is one of the important markets for the country’s economy, which has direct links with the financial and monetary markets, the construction market, market of materials, equipment and labor market. General comments on the real estate market in the country in general and in HCM City in particular, especially the focus from 2006 to the present, hope to provide more data for the management agencies as businesses and customers to give the parties a more realistic and realistic view of the real estate market “, Mr. Le Hoang Chau said.
You are reading the article “The Real Estate Market Will Continue To Grow And There Will Be No Big Fluctuations” in the section “Real Estate News” on the website: https://realestatevietnam.com.vn/
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