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HoREA: Property market recovery fragile
Saigon Times - 8/12/2015 8:35:48 AM
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The real estate market has shown clearer signs of recovery this year but an imbalance between supply and demand in some segments makes the recovery fragile, according to the latest report of the HCMC Real Estate Association (HoREA).

The association said in the review report on the property market in the first half of this year that the high-end segment enjoyed robust growth in the period but there was a lack of affordable housing for low-income people.  

Districts in the east of the city and on the west bank of the Saigon River like 1, 2, 4, 9 and Binh Thanh saw many luxury housing projects developed by Dai Quang Minh, Novaland, ThuducHouse, Nam Long, Hung Thinh, Him Lam, Vingroup, Phu My Hung, SSG Group, Van Thinh Phat, Khang Dien, Keppel Land and CapitaLand. They will offer for sale thousands of premium products in the next few years.

HoREA said the luxury segment grew strongly but it was still under control.

The association said housing demand rose but was not huge in the period. Property transactions were normal and there was no sign of speculation on the market.

Regarding concerns over a possible real estate bubble, HoREA said it would happen if there were too high economic growth, monetary loosening and subprime mortgages.

HoREA said none of these factors were found at the moment, a real estate bubble burst could not happen this year or next.

However, some experts have warned of market imbalances. There is a serve shortage of low-cost homes as the completed projects have been sold out and the number of cheap homes available for purchase on the secondary market is small.

The current supply of low-priced apartments in HCMC is meager and it is difficult to buy apartments valued at under VND1 billion (nearly US$46,000) directly from the investors. Customers must pay an additional VND100-200 million to buy these houses on the secondary market.  

Meanwhile, the Vinhomes Central Park project in Binh Thanh District and the Masteri Thao Dien and Sala projects in District 2 could offer nearly 20,000 luxury apartments to the market in the coming time.

An expert told the Daily that if these premium products cannot be sold to people in need of housing but to individual investors and speculators, the property market may crash some time in the future.
Newer News
28/03 Management of real estate brokers to be tightened
23/03 HCM City real estate market to recover in H2
23/03 Industrial real estate emerges out of storm
18/03 Lots of ground to cover to build 130,000 social housing units this year
12/03 Deputy PM urges resolving price manipulation for healthy real estate market
12/03 Limit set on interest rates of loans for social housing
21/02 Experts upbeat about real estate prospects
23/12 Foreign investments in property market expected to soar: experts
22/12 Thừa Thiên-Huế invests in infrastructure in economic zones and industrial parks
19/12 PM asks for drastic solutions to remove difficulties for realty market
Older News
05/08 Foreign capital pours into real estate in HCM City
03/08 Vietnam's fast rising property market leaves hard times behind
31/07 Experts pick holes in new bank guarantee for apartment buyers
31/07 Many foreigners eager to buy homes in Vietnam, gov’t urged to clarify funding rules
24/07 Hanoi & HCMC residential price index up
23/07 Economic recovery, new laws prop up property market
20/07 Retail property sales climb in two main cities, but not rents
17/07 Resort property market revival woos realty big guns
15/07 Recovery in Vietnam's property market is real: official
15/07 Hanoi faces office and condo oversupply
 
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