Soil land should not be able to occur real estate bubble

27/05/2018   Viewed: 752
This is confirmed by the Association of Ho Chi Minh City (HoREA) in the document sent to the Prime Minister, the Ministry of Construction and the People's Committee of Ho Chi Minh City on 22/5, not likely to occur bubble immovable real estate in 2018, although the recent time the virtual land price fever, land prices.
Speaking at a recent real estate forum, a senior economist at the Central Institute for Economic Management (CIEM) found that the market had eight out of ten signs of real estate bubbles.

Specifically, 8 trading signs; price; construction works; the deployment area increases; Entities involved in the real estate market; scale of project value; Money supply on real estate projects ... increased.
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However, according to HoREA, in the past, there has been a fever of virtual land prices, land prices in the communes along the project of Long Thanh Airport (Dong Nai); Localities are expected to become special economic zones such as Van Don (Quang Ninh), Northern Van Phong (Khanh Hoa), Phu Quoc (Kien Giang) or some peripheral districts and suburban districts of Ho Chi Minh City.

According to HoREA: "These are just local price spikes in the land market segment, agricultural land, even in cases of illegal land purchase or sale, Trading, transfer between secondary investors, business surfing profitable.

"The culprit" is the world's top sellers and storks with speculative tricks, blowing prices, creating waves causing virtual fever land prices, land prices in some localities. However, with the drastic and effective direction of the Prime Minister, the People's Committee of Ho Chi Minh City and other provinces and cities, the current situation of land price fever, land prices in localities has been initially controlled. , hypothermia.

Particularly, for the apartment market segment is the largest segment of the real estate market, no price fever phenomenon, even many investors have reduced the price of apartments, especially affordable apartment projects ".

According to HoREA, the two real estate crisis bubble in 2007 early 2008, and the year 2010 is rooted in the following reasons:

Firstly, GDP growth in 2007 was 8.48%, which is very high; HCMC's GRDP growth in 2007 reached 12.6%, also the highest growth rate in 10 years since 1997, leading to the fact that many businesses and people are easy to make money and real estate is the channel. Investment is the property chosen for storage, for business, including speculation;

Secondly, there is a direct cause of loosening credit, even subprime loans, showing a very high credit growth of 37% in 2007.

Thirdly, there is the development of the demand-supply gap in the real estate market, mainly the hot development in the high-end real estate segment.

On Wednesday, there were many real estate investors, real estate brokers, brokers, brokers, real estate speculators, surfers, and professional speculators. "Price", price, wave, surf, virtual prices are very high compared with the real value of real estate to profit, make profit very quickly, stimulating investment mentality "herd" on real estate market

Comparing the reasons for the real estate bubble with the current market situation, HoREA said that GDP growth in the whole country in 2017 reached 6.81%, the highest in 10 years, is Positive and reasonable growth. The economy has no hot growth ...; Credit growth of the whole country in 2017 reached 18.17% (roughly half of the 37% of credit growth in 2007); It is expected that in 2018, credit growth will be about 17%, which is a positive and reasonable increase. State Bank of Vietnam (SBV) is implementing a prudent, tight and flexible credit policy.

From these bases, HoREA stated: "In 2018, there is no possibility of real estate bubbles, and competent state authorities have experienced the use of the real estate, effective tax tools; credit tools; tools on land use planning and planning, investment policy of the project to effectively regulate the real estate market right after the appearance of a bubble.


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