The closing months of the year will see fierce competition among property developers in Ho Chi Minh City.
The final quarter of this year should be the beginning of the next “heyday” of Vietnam’s real estate market as changes to the Law on Real Estate Business and the Law on Housing start to be felt.
According to Mr. Nguyen Tri Hieu, an economic expert, in terms of macro-economic factors, Vietnam’s GDP growth is about 7 per cent and the country has a young population and increasing housing demand. It’s also common for people to buy a house at the end of the year after squirreling money away.
Most importantly, he went on, remittances into the property market are set to grow strongly, with a large number of overseas Vietnamese returning to their motherland to buy houses as they are now allowed to do so under the Law on Housing.
Mr. Su Ngoc Khuong, Director for Investment at Savills Vietnam, said that Vietnam’s housing prices are now quite reasonable compared to other major cities in Southeast Asia. From the end of the fourth quarter of 2014 to the third quarter of this year housing prices in all market segments exhibited almost no volatility, with increases remaining at around 3 to 5 per cent.
He also said that the real estate market now has many foreign players. Unlike the past, where foreign investors often sought office block and retail center projects, they are now actively “hunting” for residential project investments to meet the rapidly rising housing demand in the country.
Race for market share
Many experts believe Vietnam’s real estate market has never been as vibrant as it is now. This can be seen at open sales and in advertising and promotions, with some projects offering sales campaigns such as “buy a house to win a yacht”.
The most active player in Ho Chi Minh City’s real estate market is the Novaland Investment Joint Stock Company, which has launched seven housing projects in prime positions in District 10 and Tan Binh, Phu Nhuan, and Nha Be districts.
The Hung Loc Phat Real Estate Investment Corporation, meanwhile, has announced its Hung Phat Silver Star project in Nha Be district, while the C.T. Group also introduce CT Plaza Nguyen Hong, featuring 287 apartments, in Go Vap district.
The Phu Long Real Estate Company also announced that in October it will launch Phase 2 of Dragon Hill Apartments. Its plan from now to the end of the year also includes launching two villas in the Dragon City project.
“Generally, the market in the final months of the year will see a lot of good signs, with transactions increasing,” said Mr. Khuong. “Regarding supply, it is difficult to determine what segments will be the focus of investors and customers, as strategies differ. Investment in unpopular segments funded by loans will present problems for investors and for banks."
Source: CafeF/Tri thuc tre
- Ho Chi Minh real estate market
- Nguyen Tri Hieu
- Su Ngoc Khuong
- Dragon Hill Apartments