In the first 6 months of 2016, the real estate market showed more abnormalities compared to the previous year. Will there be surprises in the remaining 6 months of 2016?
The mid-range segment continues to dominate the market
Last two months, affordable housing continues to be the mainstream segment of the real estate market. In fact, not only local businesses but many foreign investors are now pouring capital into medium-priced housing projects.
According to Duong Thuy Dung, “The real estate market in HCM City, the last 6 months of 2016, moderate prices will continue to grow, not affected much, and no sudden changes.
High-end segment is forecasted to continue to grow well in the second half of 2016. However, many businesses are worried because the competition rate is too high. For apartments located close to the center of the city, access to good public transport infrastructure or points of entry will be good.
However, high-end apartment projects are priced above the average buyer’s ability to pay but do not have the support elements in terms of location, reputation or design, it will be difficult to compete with other projects.
In the segment of luxury, CBRE Vietnam General Director Marc Townsend said that in the second quarter of 2016, the return of luxury apartments on the market is evident when a project continues to be offered since first in 2015 and two new projects to market, providing the market approximately 700 apartments. The transaction volume of luxury apartments reached a certain level, mainly from the new offering.
Representatives of CBRE predict that in the second half of 2016, HCM City will receive 1-2 luxury projects, meaning that there are not many new projects. In part, investors are also looking to see how the market will react to this segment because for a long time, HCM City has not offered luxury projects.
Market prices may change as new projects are put up for sale. The offer price may be higher than the average price in the market, causing the whole price increase in the market.
However, depending on the segment, the mid-range segment price may not fluctuate much; High-end and luxury segment, if there are some real projects put up for sale, may raise the market price a little.
Over time, the competition is fiercer
The increase of FDI into Vietnam, as well as the tastes of customers, will be factors that help purify and push the market into a fiercer competition. Investors must be really prestigious, have strong financial strength, have the strategy and project must be really different, meet the needs of customers.
At present, the segments have relatively stable development, no clear breakthrough. In particular, a medium-high segment is still leading with the highest transaction volume. This is the main segment that An Gia Investment is developing.
However, customers should carefully study information about the project such as legal status, progress, payment method, reputation investors … to avoid the risk is not worth.
Apartment prices can move up 2 – 3%
According to Le Hoang Chau, Chairman of HoREA, Ho Chi Minh City Real Estate Association (HoREA), the second half of the year will be better than the first half of the year. in a state of slowing down, and potentially destabilizing factors.
The State Bank issued the Circular 06/2016 / TT-NHNN also issued a strong warning to the real estate market and will create a turning point, changing the market in a positive and sustainable way.
Tran Khanh Quang, General Director of Viet An Hoa Company, said that the market is mostly medium – high-class apartments, the second half of the year will continue to market apartments in this segment. However, the excitement lies in the segment is under VND1.5 billion per unit (about VND1.2 billion is best) because there is real demand.
On the demand side of investment, from now until the end of the supply will continue to increase, the demand will weaken and more difficult, resulting in investment is also limited. Apartment prices will inch up a bit, about 2 – 3%.
At this point the market is turning to the high-end, high-value segment, buyers should carefully calculate, considering the financial ability, the sensitivity to the market (understand the decision to buy ).
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