High prices feared to stagnate real-estate market

Although recently approved apartment projects could open new windows for buyers, prices of land and apartments keep on sky-rocketing, which can greatly deter their prospects and might lead to yet another real-estate crisis.

A real-estate project under constructions in Nha Be District, HCMC

A real-estate project under constructions in Nha Be District, HCMC

Meanwhile, 21 projects have had their apartments announced marketable by HCMC’s Department of Construction between August and November of 2019.
In another development, sky-rocketing prices seem to be the number-one concern that potential buyers are having, with some land lots reaching about VND150 million (about US$6,500) a square meter in price.
Many people expressed their disappointment when shown the quoted prices at real-estate trading floors, saying that most of them are “unreasonable” and leaving without making any deal.
As a result of escalating prices, the city is witnessing a boom in luxurious apartments. There have been apartments for sale at VND334 million (about US$14,420) a square meter, breaking 2018’s record of VND220 million (about US$9,490) a square meter.
Savills, a market research company, predicted that with the current development, these fancy apartments will bring Vietnam’s real-estate closer to Bangkok or Kuala Lumpur’s high-end price cap.
“There is a great disparity in housing supply as high-end houses are accounting for 70- 80 percent of the total number put on market”, said Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association. He feared the overpricing would discourage potential buyers and create stagnation within Vietnam’s real-estate market.

By Luong Thien - Translated by Tan Nghia

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