9 disturbing realities of HCMC real estate market

26/08/2017   Viewed: 461
The supply of real estate increased but the decrease in consumption was creating a lot of pressure on the market.
On August 16th, at the workshop on real estate market promotion in late 2017 by Thanh Nien newspaper, Dr. Dinh The Hien made many cautious forecasts for the rest of the year. According to this expert, the real estate market is pretty much a sign of concern.
 
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Firstly, the supply of apartments in the first 6 months is high compared to the same period in 2016 and still in the trend of supply greater than demand. Meanwhile, the consumption of these six months has decreased compared to last year, causing inventory to increase. Deceleration is the first sign of instability.

Second: Mr. Hien showed data of the International Monetary Fund (IMF) released in May 2017, average income and low labor productivity will limit the group of customers buying houses to stay in HCMC in the year. The pace of urbanization is still strong. This is no small challenge for the urban population of more than 10 million people.

Third: The expert continues to cite the IMF report, the credit growth rate is very fast but the economic development is not good enough that credit efficiency and return on investment are bad. go.

Fourth: Loans for real estate may face difficulties due to tightening credit policy will be applied.

Thursday: Real estate prices in HCMC in the period 2015-2017 have increased quite high and this can become a barrier to increase prices in the coming time.

Friday: Many high-end apartment projects in Ho Chi Minh City come into the period of house delivery, the pressure of renting and escaping is increasing. The high end apartment market faces a deceleration scenario, except for the mid-end segment.

Saturday: Cheap apartments, popular with the largest demand in Saigon, up to the milestone of 2017 and a few years. However, if the location and infrastructure are too poor, it will be difficult for the investors to profit and not easy to sell.

Eighth: Ground may be leveled off when investors find it difficult to exploit in the future. Especially if large capital inflows into land with leverage will lead to insecurity of investment.

Ninth: Residential real estate in the vicinity of Ho Chi Minh City and coastal cities will face difficulties due to too much competitive pressure and the escape race can be fierce.

Beside the careful view of expert Dinh The Hien, at the seminar, Lawyer Bui Quang Tin pointed out the optimistic bright spot of real estate market in HCM City in particular and Vietnam in general.

According to Tin, in 2017 interest rates in Vietnam are on the decline and in the coming years tend to adjust downward, in harmony with the interest rates of countries in the region and in the world.

This is a favorable condition, which will directly affect the real estate market. Currently, more than 50% of capital purchased, real estate investment originated from a bank loan. The most positive point is that the opportunity for home buyers and project developers to access capital is cheaper than before.
Baoxaydung.com.vn

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