20% - a figure expected to increase the price of a condominium in the next 3 years

28/11/2016   Viewed: 621
Ms. Lim predicts prices will rise by 5-7% flat per annum for three years, is supported by the level of absorption and strong affordability for middle-level apartments and affordable apartments capable increase by 10% each year.

According to Ms. Regina Lim, Director, Head of Capital Markets at JLL, Singapore is the second largest investor in Vietnam, just behind South Korea. Specifically, the consortium Lion City has invested about US $ 1.85 billion, accounting for 16% of total FDI. This trend continues to bring the signal feasible for the real estate market.
 
Con so du kien tang cua nha chung cu trong 3 nam toi

The expert said that the policy change was implemented in May 7/2015 has created an opportunity for foreigners to own real estate in Vietnam becomes more open, promoting the housing transaction volume increases . The investor has sold about 24,000 units in 2015 and 16,800 units in the first half 2016, an increase of nearly 250% over the period 2011-2014.

JLL estimates Singapore investors have invested $ 1.2 billion in real estate projects in the city in the past two years, mainly focused on the development of this type of housing.

Among them, most notably Singapore's Mapletree. The total asset value of the Group Mapletree owns in Vietnam have reached more than $ 1 billion, of which more than 400 million investment in the project in May 7/2016 Kumho Asian Plaza. Meanwhile, CapitaLand has invested more than US $ 400 million in Vietnam, including a first acquisitions of Singapore investors to develop a residential area located in District 1, worth about 51 , 9 million.

Ms Lim said: "The supply of housing in Vietnam is expected to increase 74% in the next three years, but we are confident of the absorption capacity of the market will increase. The number of apartments compared to HCMC lower population compared to other cities in Southeast Asia, even if the apartment has been launched offering ".

Although the number rose sharply, apartment prices rose 9% in the last six quarters. This is in sharp contrast to the between 2005 and 2007 when the price went up to 106% foreign investment capital in Vietnam in anticipation of a recovery in the economy and real estate market. Prices have been adjusted for about 30% during the past 7 years from between 2007 and 2014, and the result is the luxury apartment is priced $ 2.180 / m2 at 24% below the peak in 2007.

Ms. Lim predicts prices will rise by 5-7% flat per annum for three years, is supported by the level of absorption and strong affordability for middle-level apartments and affordable apartments capable increase by 10% each year.

Analysis Vietnam real estate market in the coming years, Neil MacGregor - CEO Savills Vietnam also said that purchasing power in Vietnam real estate market today in a quarter of Singapore has in the year, thereby will not have the phenomenon of "bubble" real estate in the near future. When purchasing power falls below 15%, the new concern. 2017, housing supply intermediate segment will increase, while the supply - demand balance and a healthy market in the next few years.

Also according to Neil MacGregor, consumers are growing more than the previous cycle and the next cycle will continue to rise, especially in HCMC Hanoi while more speculative. Jobs for foreigners to own houses are making a difference in the market, especially in the premium segment. Because when they invest in cash generally enjoying 7-8% profitability rate at Vietnam market, while only 1-2% in their countries.

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