Friday, March 29, 2024 10:21:17 PM - Markets open
VN-INDEX 1,284.09 -6.09/-0.47%
HNX-INDEX 242.58 -1.33/-0.55%
UPCOM-INDEX 91.57 +0.09/+0.10%
Real estate bubble unlikely next year: HoREA
Saigon Times - 12/21/2016 8:13:46 AM
 (0 ratings. You must sign in to rate.)
A real estate bubble is unlikely to burst next year, the HCMC Real Estate Association (HoREA) forecast.

The association predicted the property market in 2017 will maintain growth momentum but a slowing trend this year will probably continue. In addition, there will likely be a big adjustment to address the supply-demand mismatch that is currently skewed towards the luxury segment, including resorts.

The market may also witness a major shift to the segment with affordable prices, meeting the real needs of the majority of average- and low-income earners in urban areas. In particular, the trend of cooperation between businesses will be inevitable, and project mergers and acquisitions (M&A) will grow stronger than before.

On another note, the market will need more than just regulations and tax-related tools such as  a tax on owners of multiple houses and property tax, credit which is restricted by Circular 06 of the central bank, planning for land use, urban development or housing and investors’ responsibilities to consumers (bank guarantees, confirmations of projects eligible for financing, and announcements of mortgaged projects).

A recent change is the size of the municipal realty market has expanded beyond the administrative boundaries of the HCMC metropolitan area, especially in the fringe districts. HoREA believe only green, environmentally friendly and safe projects can satisfy the requirements of investors and consumers.

On the property market this year, HoREA says there is still room for growth but the pace has slowed and potential risks have emerged, such as the supply-demand discrepancy, the sharp rise in the number of secondary investors, and the concentration of credit on major developers of high-end projects.

The detailed report of the association says an extra 30,000 residential products have been launched in the city this year. The HCMC Department of Construction has confirmed 57 housing projects as eligible to raise capital from buyers in the future with 29,017 units, including 27,792 apartments and 1,225 low-rise homes.

Specifically, 5,630 apartments are in the premium segment (20.3%), 16,750 in the intermediate segment (60.3%) and 5,412 in the affordable segment (21.6%).

Affordable housing accounts for 79.7% and is currently the key segment of the real estate market. However, the market is still short of low-cost and commercial housing products, particularly those for rent.

Some businesses have kept failing to fulfill their obligations to homebuyers. Many projects are not qualified, especially in terms of fire prevention and fighting, yet their products have been handed over to the buyers.

In many cases, buyers have been waiting years for their home ownership certificates. In some others, investors mortgage the apartments they have sold to consumers.

“This is a distressing issue, directly affecting the interests of consumers and requiring the State to act to handle law-breaking investors,” says HoREA.
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
20/12 Experts: realty bubble on horizon
12/12 Property inventory value reduced
12/12 Top developers eye affordable housing
19/11 Third investment wave from RoK now at peak
18/11 Less cash to flow into real estate
16/11 Housing market keeps developing
13/11 Multi-house tax proposal causes stir
08/11 Realty stays balanced at the top-end
08/11 Real estate market heats up thanks to remittance flow
07/11 Housing market slows but expected to pick up
 
Newsletter Signup
Top Stories
Shares sustain gains on strong investor confidence
Banks given advantages to CASA ratio
Man owes bank nearly VNĐ9 billion in credit card's interest after 11 years
VN-Index corrects, liquidity stays high
Stock Market Upgrade Journey: overcoming hurdles and reaching new heights
Market Update
Last updated at 3:05:01 PM
VN-INDEX 1,284.09 -6.09/-0.47%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.