HCMC real estate market poised to recover next year

The real estate market in HCMC has seen signs of recovery since August and is expected to see a strong rebound during the upcoming traditional Lunar New Year holiday and next year, according to the HCMC Real Estate Association (HoREA).

HCMC real estate market poised to recover next year
High-rise buildings are pictured in this photo. The real estate market in HCMC has seen signs of recovery since August and is expected to gear up for a sharp rebound during the upcoming traditional Lunar New Year holiday and next year - Photo: VNA

According to a January-October report of the association, the local property market suffered as a result of the Covid-19 pandemic. Coupled with its existing difficulties in the last three years, the market has seen a slump in housing supply, especially in the segment of affordable products and those for low-income earners.

However, the market has been improving since August, with housing supplies improving.

Data of the Department of Construction showed that it approved in principle 11 small-scale housing projects between January and September, up by 10 projects year-on-year; endorsed developers for nine projects compared to nil in the year-ago period; and approved 24 other projects, up by 12 ones.

During the period, only 20 projects were eligible for capital mobilization, down 37.5% over the same period last year. They are to offer a total 6,722 apartments, down 65.8% year-on-year.

Of the figure, there were only 163 apartments in the low-end segment, making up 2.5%, while the middle-class segment accounted for 25% with over 1,800 products and the high-class segment offered over 4,800 products, or 72.5%.

The structure indicated a severe supply-demand imbalance and unsustainable development of the market.

At the end of October, the department announced that 10 more projects qualified for capital mobilization, offering the market over 8,300 condos and 830 houses for the last quarter of 2020.

 

Despite the pandemic, property prices remained high in the primary market. Prices in the secondary market fell a little bit as some investors sought to cut losses, while many property owners reduced rentals.

As predicted by HoREA, the market may continue recovering from now until the Tet holiday and next year, buoyed by the country’s success in bringing the Covid-19 outbreak under control and new polices of the 2020 Investment Law, amended Construction Law and revisions of the housing and property trading laws which will gain effect from January 1, 2021.

Besides, the Government is considering revising some decrees and draft laws to remove the bottlenecks in land management. In HCMC, the local authorities are planning to upgrade several outlying districts in the next 10 years, with Can Gio likely to become an ecological and sea urban area.

Further, the city has got approval to convert 26,000 hectares of farming land into land for industrial, commercial, service and accommodation purposes in the 2016-2020 period.

Moreover, the establishment of Thu Duc City in HCMC is projected to spur the local realty market, with its recovery rate outpacing the national level. SGT

Le Anh 

Real estate investors from HCM City look to Hanoi

Real estate investors from HCM City look to Hanoi

Legal transparency is believed to be one of Hanoi's strengths.  

 
 

Other News

.
4% inflation target set for 2021 within reach: experts
4% inflation target set for 2021 within reach: experts
BUSINESSicon  07/01/2021 

Vietnam is likely to meet its target of reining in inflation at a rate of below 4% in 2021, although experts warn that unfavourable factors could impact market fluctuations.

Vietnamese billionaires’ net worth increases after battling headwinds of 2020
Vietnamese billionaires’ net worth increases after battling headwinds of 2020
BUSINESSicon  07/01/2021 

2020 was a difficult year for the global economy including Viet Nam, but some Vietnamese billionaires still saw their net asset value increase.

Disbursement of public investment at record since 2016, still misses Gov’t target
Disbursement of public investment at record since 2016, still misses Gov’t target
BUSINESSicon  07/01/2021 

The disbursement of public investment was estimated at VND398 trillion as of the end of December, meeting 82.8 per cent of the Government’s plan – the highest rate in the 2016-20 period, according to the Ministry of Planning and Investment.

Vietnamese dragonfruit needs to find new export markets: Experts
Vietnamese dragonfruit needs to find new export markets: Experts
BUSINESSicon  07/01/2021 

In the first 11 months of this year dragonfruit exports fell by 10 per cent because of the COVID-19 pandemic but still dominated Vietnamese fruit exports with shipments of more than US$1 billion.

Fintech forecast to be robust this year, driven by the creation of regulatory sandbox
Fintech forecast to be robust this year, driven by the creation of regulatory sandbox
BUSINESSicon  07/01/2021 

The regulatory sandbox for financial technology (fintech) which is expected to be created this year, coupled with efforts to promote the use of digital financial services, are expected to accelerate the development of fintech in Vietnam.

Brexit deal met with relief across Europe
Brexit deal met with relief across Europe
BUSINESSicon  07/01/2021 

After four long years of debate, negotiation, elections, and more debate, the United Kingdom has finally and officially left the European Union. 

Party congress to highlight critical role of private sector
Party congress to highlight critical role of private sector
FEATUREicon  07/01/2021 

Vietnam’s development outlook is set to be formulated over the next few weeks when the 13th National Party Congress takes place in Hanoi, 

Country’s IT groups pioneering in digital transformation efforts
Country’s IT groups pioneering in digital transformation efforts
BUSINESSicon  06/01/2021 

The Vietnamese IT market has seen a strong increase in digital products, platforms, and services in 2020, with many gaining bolder steps in domestic and international markets.

Building a modern Vietnam for all
Building a modern Vietnam for all
FEATUREicon  06/01/2021 

The Vietnamese economy has been witnessing tremendous achievements over the past few decades under the sound policies and strategies by the government and the great contributions of the planning and investment sector. 

Cash flows to Vietnam, more young people start up businesses
Cash flows to Vietnam, more young people start up businesses
FEATUREicon  07/01/2021 

The Covid-19 pandemic has disrupted investment flow into Vietnam’s startups, but for venture funds, Vietnam is still considered a priority market in Southeast Asia in 2021.

Investment funds beat the market in 2020
Investment funds beat the market in 2020
BUSINESSicon  06/01/2021 

2020 marked an unexpectedly successful year for big investment funds in Vietnam, with Pyn Elite Fund having the best performance.

Over 14 billion USD mobilised through G-bond auctions at HNX in 2020
Over 14 billion USD mobilised through G-bond auctions at HNX in 2020
BUSINESSicon  06/01/2021 

Nearly VND324 trillion (over $14 billion) was mobilised through G-bond auctions at the Hanoi Stock Exchange (HNX) in 2020, accounting for 108 percent of the set plan.

VIETNAM BUSINESS NEWS JANUARY 7
VIETNAM BUSINESS NEWS JANUARY 7
BUSINESSicon  07/01/2021 

Handicrafts target $5 billion in export value by 2025

Vietnam heads towards modern, integrated agriculture
Vietnam heads towards modern, integrated agriculture
BUSINESSicon  06/01/2021 

Minister of Agriculture and Rural Development Nguyen Xuan Cuong talks about measures to promote modern agricultural development.

After fast growth, domestically assembled cars face downtrend
After fast growth, domestically assembled cars face downtrend
BUSINESSicon  06/01/2021 

The year 2020 witnessed many ups and downs of the car market. In H1, demand dropped dramatically because of Covid-19, but in H2, cars sold well thanks to the preferential vehicle registration tax.

Digitizing traditional markets – $10 billion potential
Digitizing traditional markets – $10 billion potential
FEATUREicon  06/01/2021 

Traditional markets and groceries still hold the largest share of the consumer retail market, but new business models are scrambling for a piece of the pie.

Inflation control cannot be taken lightly
Inflation control cannot be taken lightly
BUSINESSicon  06/01/2021 

Although many forecasts said that inflation would be controlled at less than four per cent this year, economists recommended it was still important to pay attention to inflationary pressures.

Concerns for reform
Concerns for reform
FEATUREicon  06/01/2021 

A strategic advisory body on reform and development is essential in the transitional economy in Vietnam.

Cross-border taxation to bolster national budget
Cross-border taxation to bolster national budget
BUSINESSicon  06/01/2021 

Collecting tax from cross-border platforms as well as people profiting from them is the government’s leading mission in 2021.

Fitch Solutions revises up Vietnam GDP growth forecast to 8.6% in 2021
Fitch Solutions revises up Vietnam GDP growth forecast to 8.6% in 2021
BUSINESSicon  05/01/2021 

Vietnam’s strong growth momentum in manufacturing is expected to continue in 2021, supported by growing external demand from trade deals such as the EVFTA, UKVFTA, and RCEP.

 
 
 
Leave your comment on an article

OR QUICK LOGIN