A high-end apartment building being constructed at My Dinh 2 Urban Area in Nam Tu Liem District, Hanoi (Photo VNA) HCMCity (VNA) - The property market will continue to grow this year,the HCM City Real Estate Association (HoREA) predicts.
Ina forecast it has sent to the Government, HoREA said one- and two-bedroomapartments price at below 1 billion VND (43,800 USD) would be the best-sellingsegment and have the highest liquidity.
“Thesocial housing segment will further develop while there will be a restructureof the high-end segment to meet market demand,” it said. "Condotels andland plots in housing projects will continue to be in great demand.
"Disputesover apartment buildings will be more knotty and need to be resolved in atimely manner.”
LeHoang Chau, chairman of HoREA, said the city real estate market would expandthis year to neighbouring regions. Investors, both domestic and foreign, wouldstrengthen co-operation, he said.
“Themarket will develop more steadily with online trading becoming more popular andmore green constructions that are environment-friendly becoming trendy.”
Theassociation said there would be a raft of mergers and acquisitions this year,boosting construction activities in the city.
Foreigndirect investment would remain the main source of funding for the market, itsaid.
Thereis no threat of a bubble this year thanks to timely action by the Government,it predicted.
Furthermore,developers too have made efforts to tweak their investment so that they developproducts that match the actual demand in the market, it said.
Buyersare becoming smarter and understand the market clearly, it said.
Ina report it released two days ago, global property consultant CBRE said, “In2018 the mid-level segment will continue to account for the biggest proportionof the market, while the high-end and luxury segments will observe moreconsiderate new supply, helping the market develop more sustainably.
“Theeast and south will continue to be the hotspots of the market, with more newlaunches in districts 2, 7, 8, Binh Thanh such as One Verandah, GEM Riverside,Midtown, High Intela, Green Field.
"Theaverage selling price in 2018 is expected to increase by 3 percent, withhigh-end and luxury segment showing an increase of 5 percent, and the mid-leveland affordable segments increasing at a lower rate of 1.5 percent.”
Theassociation said in 2017 the real estate market grew at over 4 percent.
Themedium and low-end segments saw high demand and accounted for 74 percent of themarket, it said, adding that FDI was at record levels.
InHCM City, real estate accounted for the second highest level of FDI last year,it said.
Domesticdevelopers still dominate the market, it said, listing Vingroup, Hung Thinh, PhucKhang, Khang Dien, Novaland, Thu Duc House, Son Kim, CityLand, and Him Lam assome of the major players.
Inits document, HoREA said there were five hurdles facing the city real estatemarket in 2017, and they affected transparency and growth.
Itlisted them as land-use fees, land acquisition, project sale, credit policy andadministrative procedures.-VNA
VNA
