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Property

HCMC property market showing signs of declining supply

Released at: 14:13, 14/06/2018

HCMC property market showing signs of declining supply

Photo: Ho Chi Minh City Real Estate Association (HoREA)

Latest report from Ho Chi Minh City Real Estate Association reveals falling supply in different housing segments from January to May.

by Ngoc Lan

Ho Chi Minh City’s real estate market exhibited signs of declining supply in the first five months of this year compared to the same period last year, according to the latest report from the Ho Chi Minh City Real Estate Association (HoREA).

The total number of eligible projects for capital mobilization was 29, down 9.4 per cent against the 32 projects in the same period of 2017.

The report also noted that declines are seen in different housing segments. Total housing launched on the market was 9,144 units, including 8,690 apartments and 484 low-rise buildings, down 44.5 per cent against the 16,506 units launched in the first five months of last year.

The high-end segment has 3,828 units, down 25.9 per cent on the 5,164 units in the same period of 2017. The proportion of the high-end segment, however, accounts for 41.8 per cent of the market, up strongly compared to 31.3 per cent last year.

The mid-end segment has 3,465 units, down 32.6 per cent against 5,136 units last year and representing 37.7 per cent of the total, up against the 31 per cent in the same period of 2017.

The affordable segment, meanwhile, has 1,881 units, down 69.7 per cent compared to 6,206 units in the same period of 2017 and representing only 20.5 per cent of the total, down by nearly half year-on-year.

Mr. Le Hoang Chau, Chairman of HoREA, predicted that Ho Chi Minh City’s real estate market will continue to grow over the remaining months of 2018 and remain stable, with no chance of a “bubble” appearing. “Affordable housing with one or two bedrooms and priced at less than VND1 billion ($44,000) is the mainstream segment with the highest liquidity in the market,” he said. “The high-end segment will see strong restructuring to match purchasing power. The condotel market and land will continue to be controlled.”

He added that the situation of disputes in apartment blocks will become increasingly complicated and needs to be controlled and handled efficiently and promptly.

The report also revealed that a strengthening of links between businesses and foreign investors and the promotion of cooperation between enterprises is also expected to take place over the remainder of the year.

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