Vietnam Business Channel

HCMC Property Market Set for Growth in 2018

The Ho Chi Minh City Real Estate Association (HoREA) has issued a report for the government and has forecast that one and two-bedroom apartments that are priced around $45,000 USD (1 billion VND) will be the best-selling segment in 2018 and will have the highest liquidity.

The report also noted that foreign direct investment would remain the main source of funding for the market and that HoREA expect a number of real estate industry mergers and acquisitions in 2018 that will boost construction activities in the city.

The HoREA report noted that, “The social housing segment will further develop while there will be a restructure of the high-end segment to meet market demand. Condotels and land plots in housing projects will continue to be in great demand.”

It also noted that, “Buyers are becoming smarter and understand the market clearly and developers have to make efforts to develop products that match the actual demand in the market. The report also stressed that disputes over apartment buildings need to be resolved in a timely manner.”

Le Hoang Chau, the Chairman of HoREA, said the city real estate market would expand in 2018 as domestic and international investors expand their cooperation and look to expand their developments to neighboring regions.” He also said, “The market will develop more steadily with online trading becoming more popular and more green constructions that are environment-friendly becoming trendy.”

In a report it released on Jan. 9th, global property consultant CBRE said, “In 2018 the mid-level segment will continue to account for the biggest proportion of the market, while the high-end and luxury segments will observe new supply, helping the market develop more sustainably. The east and south will continue to be the hotspots of the market, with more launches in districts 2, 7, 8 and Binh Thanh.”

CBRE projects that “The average selling price in 2018 is expected to increase by 3 per cent, with high-end and luxury segment showing an increase of 5 per cent, and the mid-level and affordable segments increasing at a lower rate of 1.5 per cent.”

In its report, HoREA said that in 2017 he medium and low-end segments saw high demand and accounted for 74 per cent of the market, and that FDI was at record levels.
HoREA said there are five issues facing the city real estate market - land-use fees, land acquisition, project sale, credit policy and administrative procedures and that they affect transparency and growth.