“Currently, it’s a really big number of speculative investors in each project. Real demand is still there but not equal to the amount from speculators “, said Ms. Do Thu Hang.
In the first half of 2015, the Vietnam real estate market of apartment for sales has a sharp breakthrough, especially the supply of opensales projects. According to the statistics, 13.000 apartments are opened for sales in the first half year. This amount is equal to the supply of the whole 2014 year. In forecast by experts, The supply of the whole year would become over the strong growth period in 2006 – 2010.
Ms. Do Thu Hang, Head of Research and consultancy department of Savills Hanoi has answered around this problem.
Despite of a large amount of apartment for sales in the market, there is still a phenomenon of increasing price after every open sales ceremony of the developers. In your opinion, what is the reason for this problem?
We realize that recently there is large amount of apartment for sales. In detailed, it is about 7.000 units in 1st Quarter (the consumption rate is 40%), 6.000 units more was added in 2nd Quarter from 27 different projects. So, the total amount is about 13.000 apartments.
There are some developers consider about the quantity of apartments after each sales opening, or consider to increase apartment prices periodically. In my opinion, it is their business strategy. Only projects with good location or high reputation investors could raise prices.
Do Thu Hang, Head of Research and consultancy department of Savills Hanoi
The fact of speculative trends have returned to the real estate market. According to you, what is the impact of this trend in ̉ the rest of this year, 2015?
Currently, it’s a really big number of speculative investors in each project. Real demand is still there but not equal to the amount of speculators and investors. We think that this may cause some consequences. When a speculative investor buy a house, they expect the house price would raise in the future. And this will lead to the price increasing in the future of whole market. However, we don’t need to worry so much about that due to the big number of products in the real estate market, even the buyer with speculative purpose will meet that problem and should consider carefully.
We predict that many transactions to be made in the rest of 2015. However, the speculative factor may distort demands.
The real estate market has a sharp recovery at this time. The supplies and credit increases 11% compared with the same period last year. So, according to you, would it occur the real estate bubble or not?
Looking at the short term, in recent, the market reached its bottom and had a fast recovery. We realize that the transactions in 2015 are in the high level. The fact that Transactions in the first half 2015 are the same with the whole 2014 may lead the whole year transaction to be over the developed period in 2006-2010. Recently, construction progress become so fast and the buyers turn to worry about, especially the bank ensure the construction progress for the buyer after the first of July.
Estella Heights apartment of Keppeland will be opened for sale second stage in this September
However, the market just become better this time, so in the short term there can’t be a bubble. Besides, there are so many apartment for sales, about 8.000 units and would be significant more in the future. The supplies would be enough for the demands. Customer needn’t have to dispute on the supply that makes the price goes up. So, there are many factors indicate that there won’t be any bubble in the next time.
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