Real estate market off-peak, slowdown: Horea

The Real estate market reached its peak in 2015, showed signs of slowdown in the following year and has posed latent risks this year, said chairman of HCMC Real Estate Association (Horea) Le Hoang Chau yesterday.

High class apartment buildings in District 2, HCMC (Photo: SGGP)

Speaking at a conference by the Department of Construction to implement missions this year, Mr. Chau said that the property market had quickly developed in all segments for the last ten years.

According to a document which the association has recently sent to the city Party and People’s Committees to contribute opinions to HCMC real estate market development project, the  market has yet to obtain the target of developing transparently, healthily and sustainably while supply and demand imbalance has recurred.

Bank credit and social capital has been lop-sided to run into some large companies, high grade property segment and tourism.

Last year, HCMC received an extra of 30,000 housing products. The Department of Construction confirmed 57 future housing projects with the total supply of 29,017 apartments eligible for capital mobilization.

Of the number, 20.3 percent belongs to high grade segment, 60.3 percent middle segment and 21.6 percent common products.

Statistics from authorized agencies show that property inventory value approximated VND5,518 billion (US$242.3 million) on February 20, down VND283 billion compared to last December and nearly VND1 trillion compared to 2015.

Despite the significant inventory reduction, Horea reported that about 500 out of 1,200 property projects in the city have been halted mostly due to half-done site clearance.

Stating at the conference, deputy chairman of the HCMC People’s Committee Le Van Khoa instructed the Department of Construction and districts to implement measures to ensure supply and demand balance and prevent real estate bubble from occurring.

By Minh Huy – Translated by Hai Mien

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