HoREA warns the decline of the real estate market

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HCMC real estate slump in liquidity and supply; affordable housing is becoming increasingly scarce, according to HoREA the market is untenable.


HCMC real estate slump in liquidity and supply; affordable housing is becoming increasingly scarce, according to HoREA the market is untenable.

HCM City Real Estate Association (HoREA) announced the development of the HCM City property market and warned about the slowdown in many segments in the first half of 2018.

In concrete terms, in the first two quarters of 2010, the total supply of home products from HCMC projects dropped to 44.5%. In particular, the luxury segment fell by 25.9% (but still represented 41.8% of total supply), the middle segment fell by 32.6% (accounting for 37.7% supply), the segment fell Strong to 69 , 7% (only good for 20.5%).

This is an expression of disruption of supply and demand. As the real estate market evolves in a sustainable and equitable manner, the segment of affordable housing should represent the largest share, followed by the middle segment and high-end apartments. accounts for a small part.

In addition to a sharp fall in the supply of real estate, property sales and transfer declined, only 6 out of 15 eligible projects were approved.

In addition, the association also expressed its concern about the virtual land fever that disrupted the market. From early 2017 to June 1818 there were spontaneously two virtual storms of land price, agricultural land that was illegally subdivided into some coastal districts and suburbs.

HCMC real estate market. Photo: Quynh Tran

In addition, a large part of consumer credit is abused in the market, diverting investments to the risks of business activities. The real estate sector is not transparent, unhealthy, there are still signs of "group interests", "friendship capitalism" has discouraged and hampers legitimate business enterprises For companies that have access to land resources, capital …

According to HoREA, the slowdown and instability are the most obvious indicator for the development of the HCMC property market, which is not sustainable and requires more prudence, supervision and warning. in the future.

However, the association remains of the opinion that the market has not turned out to be a real estate bubble, despite the fact that some companies are planning to respond if the market is going through a bad development in the near future.

Talking to VnExpress, CEO of a real estate investment consultancy based in District 3, HCM City, said that Vietnam real estate and Saigon in particular are missing a lot of factors that form the market. healthy property.

This expert points to five important factors: the right product; Buyers – sellers know, thoroughly consulted; Real estate developers (investors) have the right information and ultimately the speculators profit in a transparent way. He judged that all five factors in the property market in Vietnam can not be reached and the market develops unhealthily and unsustainably.

According to Vu Le / vnexpress.net

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