The real estate market in the first half of 2019 has bright spots, the industrial real estate market welcomed the shift of businesses moving from China. However, there are still alarming segments...
According to Central Institute of Economic Management, Tran Kim Chung, under the positive impact of the shift of investment from China to other regions, Vietnam is a destination for foreign investment. Consequently, Vietnam's industrial real estate market enjoyed positive benefits in the first half of 2019.
Commenting on the real estate market in the first 6 months and this year, Deputy Director of Central Institute of Economic Management said that the market will likely turn out well.
Secondly, the segment of houses and land plots in the area prepared for urbanization. Mr. Chung said that under the pressure of urbanization, a number of lands along Hanoi, Ho Chi Minh City and newly upgraded cities were converted, shifted and increased. When the market segments are equivalent to the average price house, the average apartment is in the transition phase, the new suburban housing segment will take the throne.
Thirdly, Mr. Chung said that the market segment of luxury apartments with a number of projects has entered the stage of completion. A number of projects have been promoted after a delay. When the average segment has grown to a certain extent, the luxury segment will be interested and developed.
Fourthly, the segment of the old town house market according to the Director of the Central Institute of Economic Management is a segment that is difficult to monitor but it is very "drastic" and often has strong fluctuations at the end of the business cycle. Whenever there is a market fluctuation, this segment will eventually change when the market establishes a new price level, a new development cycle for the real estate market.
Fifthly is a low price house. According to Mr. Chung, this is still the product group with the largest demand and their demand always exceeds supply. However, to have land fund to develop this segment project is very difficult.
Sixthly, the mid-priced apartment market is still the key group of the real estate market, but according to Mr. Chung, the period of 2018 - 2019 is showing signs of oversupply. Many projects have been completed but not sold yet. Delivery of housing appears immediately. According to Mr. Chung, although it is not a redundancy of this segment, it can be seen that the product has reached the oversupply threshold.
Seventhly, the real estate market segment of the project is still in great demand but not so prosperous, because the economy is in the restructuring phase, the subjects also adjust their business strategies, production plans. so the project assignment is pretty clear. However, in order to successfully transact projects that require a lot of factors, so although there is a great demand, liquidity is also available but this is still a less obvious segment of the most development trend.
Eighth, segment of real estate market condotel, officetel... after the booming development period of 2014-2017, if there is a full legal system of ownership, this segment will have developed more strongly. However, the legal system of this segment did not meet the market's requirements. Until now, after the Prime Minister's direction, this market has changed and is expected to be better.
Ninthly, in terms of agricultural land market, in the process of land accumulation and concentration, the market will be vibrant if it is easy to change the purpose of land use. But now, in this segment, the market is mainly developed for rent.
And finally, the segment of the real estate market in emerging areas, along the axes of Hanoi - Hai Phong - Quang Ninh or Phu Quoc, Van Phong, has traded again. Some emerging areas like Binh Dinh and Ninh Thuan are also showing signs of prosperity.
General comments on the real estate market in the first 6 months of the year and 2019, Deputy Director of the Central Institute for Economic Management said that the market would likely turn out well.
However, policy and management still need to take drastic measures to ensure the real estate market develops sustainably altogether with the economy.
According to Minh Thu