Real estate market in Ho Chi Minh City is witnessing shifts in supply segment, interest in apartments and sites of supply. Because of being well invested, property in West Ho Chi Minh City is “emerging”.
Ho Chi Minh City Housing Market Report within the first quarter of 2017 by Danh Khoi A Chau Property Joint Stock Company shows there are three distinct shifts in supply segment, interest in houses/ apartments and sites of supply.
As noted by Danh Khoi A Chau Property Joint Stock Company, there's a obvious transfer of supply segment. In 2016, high-finish and mid-finish apartment projects taken into account the great majority (about 70% of market supply). It's feared that market imbalance will occur once the way to obtain mid-finish apartment projects isn't enough.
However, by the very first quarter of 2017, a lot of low-finish apartment projects were launched towards the market (comprising about 45% of market supply). Consequently, many purchasers may have possibilities to possess apartments appropriate on their behalf. Generally, the availability of apartments within the first quarter of 2017 arrived at over 7,100 apartments. The amount of apartments offered arrived at about 4,946 (comparable to about 69% from the supply within the first quarter of 2017).
The shifting from mid-finish and-finish apartment segment to low-finish apartment segment has brought to some transfer of the interest in apartments. Accordingly, in 2016, no more than 30% of buyers planned to reside in apartments they bought within the first quarter of 2017, about 50% of buyers planned to reside in apartments they bought. The amount of people from other countries and overseas Vietnamese buying houses and apartments in Vietnam still increase following the Government’s Decree No. 99/2015.
Mr. Pham Lam, Chief executive officer of Danh Khoi A Chau Property Joint Stock Company, stated: “The way to obtain high-finish apartments declined because in 2016, mainly in the 3rd and fourth quarter of 2016, the availability of luxury apartments elevated considerably. Around 80% of those luxury apartments were consumed. However, thus far, within the secondary market, the liquidity isn't good and profit is decreased. Thus, investors are watching the marketplace to generate next plan.”
Based on the report of Danh Khoi A Chau Property Joint Stock Company, in addition to the transfer of supply segment and interest in apartments, the apartment marketplace is shifting in sites of supply. Accordingly, in 2016, apartment projects concentrated mainly within the East Ho Chi Minh City (taken into account about 31%). However, within the first quarter of 2017, the marketplace observed an upswing from the West Ho Chi Minh City if this area taken into account about 49% from the total market supply (about 3,494 apartments).
Explaining the transfer of sites of supply from East Ho Chi Minh City to West Ho Chi Minh City, Mr. Pham Lam stated the existing Vo Van Kiet street (a arterial road linking East Ho Chi Minh City and West Ho Chi Minh City) has produced a brand new appearance for that the entire West Ho Chi Minh City area, enhancing the West Ho Chi Minh City place to easily connect with the East Ho Chi Minh City area or even the city center. Numerous traffic works for example Kinh Duong Vuong Street upgrading, has stimulated the introduction of free airline Ho Chi Minh City area’s property.
Additionally, recently, free airline Ho Chi Minh City area’s system of utilities continues to be constantly developing and lots of foreign corporations have started to invest in this region. Furthermore, property prices in the western world Ho Chi Minh City area are less than property prices within the East Ho Chi Minh City area, therefore creating possibilities for purchasers.
Concerning the market in 2017, based on Danh Khoi A Chau Property Joint Stock Company, in 2017, you will see a lots of apartments, townhouses and villas. The mid-finish and occasional-finish apartment segments still take into account a sizable share from the overall supply. For the short term, free airline Ho Chi Minh City area is constantly on the dominate most supply.
Clients are more and more thinking about the prestige of investors, sales policies, payment schedule, etc. Property projects in adjacent areas with Ho Chi Minh City for example Lengthy An and Dong Nai still blossom later on.
Based on Công Quang/ dantri.com.vn