The real estate market in July 2019 witnessed a mass landing in the province of many investors and retail investors. In addition, affordable housing - the segment that accounts for 80% of market demand witnessed many fluctuations in both Hanoi and Ho Chi Minh City.
Developers and investors rushed towards the provincial market
The trend of flocking to the province to develop projects and the wave of investors seeking opportunities in new markets has been quietly taking place over the past year. This wave was stronger in July 2019 when Hanoi and Ho Chi Minh City continued to scarce new projects launching, while the provincial markets were vibrant with a series of official launching and opening event.
According to Mr. Nguyen Van Dinh, General Secretary of Vietnam Real Estate Brokers Association, the authorities' review of procedures, land fund, project legal are the main and most fundamental cause of supply and Decreasing transactions in many localities, especially large markets, which are the focus of real estate nationwide. Hanoi, Ho Chi Minh City and some other big markets such as Da Nang, Nha Trang... are having difficulty in the approval and approval stages. Therefore, investors must find new markets to develop the project. Retail investors also followed this wave, leaving the traditional market and exploring new markets. This trend is in full bloom throughout the country.
The real estate market in July witnessed the explosion of a series of successful projects which were announced, introduced or officially launched for sale in provincial markets.
The real estate market in July witnessed the explosion of a series of projects that were announced, introduced or officially launched in the provincial markets. Some names can be mentioned such as: Apec Mandala Wyndham (Hai Duong), Aqua Park (Bac Giang), TNR Stars Thoai Son (An Giang), Tan Lap Garden, Nam Thinh Phat Center (Binh Phuoc), Stella Mega City (Can Tho), Goldsand Hill Villa (Binh Thuan)...
Low investment rates, promising high price space resonate with potential internal factors such as economic development speed, FDI attraction or beautiful natural landscape advantages..., creates the attraction of new markets with investors.
Cheap housing continues to face many challenges
In fact, for the past 2 years, Hanoi and Ho Chi Minh City have been extremely scarce in affordable housing products. Along with the authorities reviewing the procedures, land fund, project legal, the number of new projects in this segment is dripping. In this context, affordable housing has consecutive adverse changes.
Over the past 2 years, Hanoi and Ho Chi Minh City have been extremely short of affordable housing products.
In Hanoi, before that, the scarcity of new supply made the activity of buying and selling affordable houses in the secondary market quite exciting. Projects in Ha Dong, Hoang Mai and Nam Tu Liem are always within the sights of people with real needs. In fact, low-cost houses of the "giant plow" Le Thanh Than are occupying a large market share in Hanoi cheap market. With a much softer price compared to other projects in the same segment, located in many locations quite near the center, some low-cost projects of giants are always recorded good transactions in the secondary market.
However, only a short time, a series of adverse information related to affordable houses such as the "tycoon" of this segment was prosecuted, a series of projects with red book certificates have caused housing transactions. cheap becomes quiet. Previously, some projects with locations near the center could have sold at the same price or slightly different from the time of buying, at this time, the price of many apartments for sale has decreased compared to the previous month. Many customers put down piles, suspending home buying plans to listen to the market.
In Ho Chi Minh City, the story of cheap houses is not better. Ho Chi Minh City Real Estate Association (HoREA) data continues to show the inferiority of affordable houses compared to the remaining segments. Even within the market in 2018, the supply of affordable apartments always went "backward" through the quarters. In the first quarter of 2018, class C apartments accounted for 32%, then in the second quarter, down to 29%, and in the third quarter, the HCMC market did not have any Grade C projects offered. By 2019, the supply of affordable apartments continued to decrease by 34.7% over the same period in 2018. Especially in the first 6 months of 2019, Ho Chi Minh City market did not have any cheap projects to be implemented.
The decline in supply has pushed the price of affordable apartments in Ho Chi Minh City up from US $ 1,000/m2 to US $ 1,200/m2. The dream of owning a house of young, low-income people in Ho Chi Minh City is increasingly distant.
According to Binh Nguyen