Vietnamplus

Ho Chi Minh City faces a housing shortage caused by the rapidly rising population and shortage of new housing projects.

Real estate enterprises in Ho Chi Minh City are waiting for new measures to help them deal with difficulties related to policies and credit so as to grow more stably and sustainably.

The Ministry of Construction has recently requested the Departments of Construction in cities and provinces to urge enterprises in the real estate sector to report suspicious transactions and cash transactions worth 300 million VND (13,000 USD) and above.

Ho Chi Minh City’s realty sector experienced a hazy first half of the year, with dwindling supply of both high-end and pocket-sized apartments, according to insiders.

As the State Bank of Vietnam (SBV) has ordered tight control over real estate loans by credit institutions, property firms and developers have to seek alternative ways to raise their capital, and many of them have decided to issue shares to fund their business.

Vietnam is making concerted efforts to improve the quality of information disclosure and transparency of corporate bond issues and listings to develop a healthy bond market and reduce risks for investors.

Four years ago, the State Bank of Vietnam (SBV)’s preferential loan credit package of 30 trillion VND (1.29 billion USD) helped thousands of low-income people purchase low-cost apartments in big cities.

The HCM Real Estate Association (HoREA) has suggested the State Bank of Vietnam (SBV) extend the application of regulations on banks’ maximum ratio of short-term funds used for medium- and long-term loans until the end of 2020.

As disputes between apartment residents and developers are cropping up in Ho Chi Minh City, the Ministry of Construction and the National Assembly’s Committee on Law will inspect the management and operation of several apartment buildings in the city at the end of March.

The Ho Chi Minh City Real Estate Association (HoRea) has recommended that the municipal People’s Committee should be more selective about giving licences to high-rise buildings.

The HCM City housing market showed signs of unsustainability in 2018 due to an imbalance between supply and demand, a property industry business group said.

The purchasing power of apartments in Ho Chi Minh City has decreased significantly and yet, the demand for land for residential purposes is still recording positive signals.

The new restriction on banks of using only 40 percent of their short-term deposits for long and medium-term loans should not take effect next year, the Ho Chi Minh City Real Estate Association (HoREA) has said.

The flow of foreign direct investment (FDI) into real estate in Ho Chi Minh City has followed the same trend as with the FDI movement into the country, with the property sector always among the top FDI recipients in recent years.

The HCM City housing market will continue to grow this year, especially the 1 billion VND (44,000 USD) condo segment, the HCM City Real Estate Association (HoREA) has predicted.

Vietnam’s real estate sector has witnessed significant participation from Japanese investors through cooperation with local businesses recently, promising to bring benefits to the real estate market.

Japanese businesses commit to using advanced technologies to develop urban infrastructure in Ho Chi Minh City, said President of the Japan Conference on Overseas Development of Eco-Cities (J-CODE).

The HCM City Real Estate Association has recommended real estate companies transform themselves into publicly listed joint-stock businesses so they are able to seek greater funding to improve business performances in 2018.

The property market will continue to grow this year, the HCM City Real Estate Association (HoREA) predicts.

The securities market is likely to be the most attractive investment channel for investors in the Vietnamese economy this year, analysts said.