A corner of Phu My Hung urban area in HCM City (Source: VNA) HCM City (VNS/VNA) - The HCM Cityhousing market will continue to grow this year, especially the 1 billion VND (44,000USD) condo segment, the HCM City Real Estate Association (HoREA) has predicted.
Le Hoang Chau, HoREA Chairman, said the 1billion VND segment will be the most liquid while the luxury segment will berestructured in line with actual demand.
Authorities will continue to cool down theland and condotel segments, it said.
In the second half of the year developers willcontinue to upgrade the city’s infrastructure, rebuilding old apartments,joining in resettlement programmes and developing smart urban areas, it said.
They will strengthen relations with foreigninvestors to raise more funds, it said.
In the first five months of this year theproperty market was slightly down compared to the same period last year, withonly 29 projects launched, almost 10 percent fewer.
Nearly 9,200 housing units were put in themarket, 8,690 of them apartments and the rest houses, down by more than 44 percent.
The slowdown had spread to the apartmentmarket, with the luxury segment declining by 26 percent, the mid-price segmentby 32 percent and the low-end segment by 70 percent.
Land prices shot up, especially in District9, though of late they have levelled off.
Fifteen M&A deals were done.
Property attracted the third highest amountof FDI.
According to HoREA, developers facechallenges in getting loans since banks are tightening credit on instructionsfrom the State Bank of Vietnam.
The association wants the Government tocontrol two main factors that affect the market: the imbalance between demandand supply in the luxury apartment and condotel segments and the disinformationspread by brokers to manipulate land prices.-VNA
VNA
