Ho Chi Minh City Real Estate Association (HoREA) has just released a report on developments in Ho Chi Minh City’s real estate market and warned about the deceleration in many segments in the first half of 2018.
Specifically, in the first two quarters of the year, the total supply of housing products of projects in Ho Chi Minh City decreased by 44.5%.
This is a worrying sign of supply-demand imbalance.
In addition to the sharp decline in supply, real estate project purchase, sale and transfer (M&A) activities have decreased, with only 6/15 eligible project transfer documents being approved.
In addition, the Association also expressed concern about virtual land fevers distorting the market.
Ho Chi Minh City real estate market.
In addition, in the market, a large portion of consumer credit is being used for the wrong purpose, diverted into potentially risky real estate investment and business.
According to HoREA’s assessment, the above phenomenon of deceleration and instability is the clearest sign that the development of Ho Chi Minh City’s real estate market is unsustainable and needs more careful attention, supervision, and warning.
However, the Association still maintains the view that there is no real estate bubble in the market, although in fact, some businesses have planned to respond when the market has bad developments in the near future.
Talking to VnExpress, the General Director of a real estate investment consulting company based in District 3, Ho Chi Minh City said that real estate in Vietnam in general and Saigon in particular is lacking many factors that create the market.
This expert points out 5 important factors: the product meets the needs;