Continue to give you useful information after the post about the report of Saigon real estate market in the second quater of 2015, we want to write about the noise between this report of CBRE and Savills. The error in 2 reports from 2 company is significant big and should take a tour to know what is really happening in this market.
In the 8th of July, Savills reports that 5.000 apartments in the market have been consumed, a highest record from the last quarter of 2010. The number of apartments sold in District 2 equals 28% and Binh Thanh District equals 15% of the total number Saigon market. And this number from Savills is not fit with reports from CBRE just after it few days, 10.000 apartments while the target objects of survey compaign are the same in 80 to 100 projects with 19 new projects opened to sell. That conflict in the number from these reports need to be explained by the head of 2 international company.
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On behaft of CBRE, Mrs. Le Hoang Lan Nhu Ngoc, head of reserching and developing market department, stated that the number of 10.000 is the true number of the market with maximum error about 5%. The source of apartment sold are from the number of transactions in every project CBRE represent and sell, real estate agents and investors and developers then compare to each others. If calculated just in 19 new projects opened to sell, apartments are sold reach up to 5.000 already.
On the other side, Mrs. Nguyen Thi Van Khanh, head of consulting department of Savills, stated that number of 5.000 apartment sold is the number calculated in April, May and June and that number is certified by the developing network, real estate agent and developers. The error maximum with this report is just from 3% to 5%. In addition, she stated that number not including the number of customers keep the contract before deposit and the number of apartment in wholesale market for the number in this case has been come to final selling contract.
Mr. Nguyen Van Dung, price president from Dat Lanh group, give his own idea that:” I don’t believe that foreign companys can have a report with error just in 3% to 5%. In this unclear market, who has made is up to 20% is the experts”. He advice investor that you should not rely on the number of that report totally. At the present, there are many tricks and way to give to the market the illusion number. The seller can re-deposit to keep position or one product that has been deposited still continuing to be sold in other system are two reasons that the market is unclear and the error from this report should go higher.
Up to now, Vietnam has no standard system register all the transaction of the market so the total number of apartment sold is very hard to determine. That’s why the different between two company is normal but the number of 5.000 is not a healthy sign of the market.
This error will imparts directly to all the people who set the strategy for development, project developers and secondary investors and most of foreigners who could buy from the 1st of July. They may come to a wrong decision and receive a minus investment.
It is the time for Vietnam to imitate Thailand or Singapore to set up a transaction system for the sustanable of the market and prevent the corruption in the near future!
Literatured from VnExpress