Optimism in HCM City real-estate market

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Báo Dân Trí English - 70 month(s) ago 54 readings

Optimism in HCM City real-estate market

There are optimistic signs of investors coming back to the real-estate market in HCM City after the State Bank of Vietnam (SBV) announced to lower interest rates.

Optimism in HCM City real-estate market

The general director of Dai Tin Real Estate Service – Trading Joint Stock Company, Phan Duc Tri, boasted that his company has made considerable achievements over the last week, when 16 out of 21 lots in a project in My Phuoc Commune, Binh Duong Province, which, in early April, that appeared to be unsalable, received orders.

Tri attributes this to the recent SBV decision to lower deposit interest rates to 12 percent on April 11, increasing investor confidence.

Similarly, right after Hoang Anh House Construction and Development Joints Stock Company announces its plan to sell the Hoang Anh Minh Tuan project in District 9, Ho Chi Minh City, more than 20 real estate agents has contacted to become distributors.

According to Luong Tri Thin, Chairman of Dat Xanh Group, another factor that helped attract investors back into the market was price policy. Thin said that real-estate price in Ho Chi Minh City and surrounding provinces have also seen large reductions, of 30% – 50%, in comparison with several years ago.

Chairman of Hoang Anh Gia Lai Group, Doan Nguyen Duc, said that once prices reach reasonable levels, people would certainly buy.

Duc added that low prices play a role in factor saleability, and can bolster demand in a gloomy market. In fact, although the company’s gross profit in 2011 did not meet their target, Hoang Anh Gia Lai still made more than VND1.7 trillion from real-estate projects.

He says that, although supply remains high in the real-estate market, the demand for housing in mid and low-end sectors is always there and has great potential for development.

“When macro-economic factors become favourable come in line with low interest rates, along with a higher per capita GDP, the real-estate market will develop,” Duc says.

The senior manager of CBRE Vietnam, Adam Ruby, also said that currently housing supply in this sector remains low in HCM City, but will likely rebound when economic conditions get better.

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