HCM City real estate market remains gloomy

HCM City real estate market has remained gloomy for three consecutive quarters, but some investors are still offering for sales some projects the fourth quarter with an expectation that the market will recover soon.
Till the end of the third quarter 2011, due to prolonged real estate credit policy and high interest rate together with psychological anxiety of investors and house purchasers in the real estate market, the number of projects has been less than expected.

However, while all real estate segments in Saigon have been engulfed in crisis, some investors dare to find joint venture partners and introduce products to survey wait for “the fall” of the market from the middle of the fourth quarter this year.

By early December, Viet Real Estate Commercial Joint Stock Co (Vietcomreal) announced to open for sales of Moon Garden apartment project in district 4 at the price of 24-26 million dong per square meter. The project with an estimated investment capital of 758 billion dong was invested by Southern Rubber Industry Joint Stock Co (Casumina) and developed and distributed by Vietcomreal.

By the middle of Q4 or in November, a series of apartment and townhouse projects and villa land in HCM City were massively introduced for sales. On November 11, CT Land Co (a member of CT Group) organized a mini real estate exposition entitled “Buying house to welcome Tet (Lunar New Year)” lasted until the 2012 Lunar New Year whereby many real estate firms such as Hoa Binh, Vietnam House, Van Phat Hung, Song Da Cuu Long, 584, Ben Thanh Duc Khai, Dat Lanh and Thuan Viet announced and opened for sales many apartment products priced at less than 1.5 billion dong per unit.

Joining the race to sell products, Khang Dien Housing Trading and Investment Joint Stock Co also offered Hoja Villa project in district 9, HCM City at the price of 3.7 billion dong per unit (including VAT-value added tax). On November 24, Phuc Loc Tho Ltd Co also launched its apartment project named Phuc Loc Tho in Linh Trung ward, HCM City’s Thu Duc district.

Currently, in HCM City real estate market, only Gold House project (Nha Be district) is offering a discount of 20% and has sold over 470 of the total 500 apartments in November. The rest of the market is changing insignificantly.

Although launching commodities amidst hard time, the common point of these enterprises is to choose the fall of real estate market in 2013 and accept to study and explore the market in 2012.

Vietcomreal’s general director, Nguyen Thi Phuoc, said her firm is preparing six projects in urban districts of HCM city and waiting for the market’s recovery to open for sales. “By the end 2011, I decided to sell apartments with convenient location, small and medium area in district 4 namely Moon Garden to explore the tastes of customers.” her said.

Mrs Phuoc said Vietcomreal have been formed for five years and preparing legal documents for many projects but during the past period, her firm has not launched products yet as the macroeconomic situation and the real estate market remain difficult. “The reason why the company introduced commodities in the months of Tet holiday is due to we believe in the medium term, the market will show signs of recovery,” Phuoc said.

General Director of Hung Viet Construction Investment Joint Stock Co and Korea Real Estate Development Fund (KRDF03), Oh Shanghun stated that real estate sector is not out of the crisis. Since 2009, HCM City real estate market has stagnated due to lack of cash liquidity in the market. But Mr. Oh Shanghun expected that the devaluation pressure of Vietnamese dong will be gradually reduced and loosening credit policy would be effective from the third quarter of 2012. “We believe that the market will recover in 2013,” Oh Shanghun said. – Vietbiz24

Tags: Vietnam Property market, Vietnam property sector, vietnam real estate market