House prices can not keep falling, but will recover some time in the future. People should consider buying houses when their prices go down to reasonable rates.
Despite a decline in the housing market, the demand for houses is still increasing.
That is the advice given at a workshop entitled “Housing market – Adaptation for development” recently held by the real estate agency CB Richard Ellis (CBRE) in Ho Chi Minh City.
Some years ago, many house buyers were speculators in houses and then sold them for profit, and so many people had to compete to buy a house. The same situation re-occurred early this year, when people vied with other to buy deluxe apartments offered by Hoang Anh Gia Lai Company, said Nguyen Nguyen Thai, deputy director of CBRE.
However, the picture is quite different now. Because of tightened credit regulations and highly-increased lending rates, many small speculators have to leave the market, Thai said. House prices have sharply gone down and the sell-off of houses has occurred, he said.
Currently, the supply of houses is plentiful when a lot of housing projects have been completed and newly-built houses are offered to customers. From now until the end of this year, about 6,000 apartments from 12 housing projects will be ready for sale.
However, the market is still slow. Too few deals have been made successfully. Many speculators lack capital, so some potential buyers say that they are considering prices and waiting for the best chance to buy houses at reasonable prices.
According to Thai, the trend in house buying is changing remarkably. Nowadays, the location of houses is no longer very important to those who buy houses to live in. Most buyers aim to buy moderate priced houses, particularly those far away from downtown, but with complete infrastructure. This may also be the trend of those who lease houses to use as offices.
Despite a recent slowdown in the housing market and price declines for apartments belonging to new projects, prices for the apartments delivered or to be delivered remain unchanged or have gone down a bit.
However, it is advisable that investors should follow market trends, put focus on projects for small apartments, and join hands with other investors so that they can offer houses to customers at reasonable prices, meeting the needs of moderate-income earners, said Thai.
At the workshop, many businesspeople were of the opinion that despite a decline in the housing market, the demand for houses is still increasing. House prices can not keep on falling, but they will recover some time in the future. Those who wish to buy houses to live in should do when prices go down to reasonable rates.