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What will the real estate market be like in 2018?

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Forecasts about the real estate market in 2018 are all inclined towards optimism.

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The real estate market is warming up

 

Analysts believe the market will witness further growth in many market segments thanks to strong demand.

Affordable housing

High-end property (villas, high-end apartment blocks and resorts) in HCM City have had stable supply and demand in the last few years. However, the supply increased rapidly and market analysis firms estimate that the absorption rate of apartments of this kind was only 60 percent in 2017. 

Meanwhile, the demand for mid-end housing has been increasing rapidly.

Analysts say that with increased demand, plus upgraded infrastructure, including a subway system in the near future, the mid-end market segment will be bustling in 2018.

A report found that in 2017 the number of apartments sold decreased by 18 percent compared with 2016. In HCM City, 30,000 apartments were sold, 60 percent of which were mid-end products.

Though still giving optimistic forecasts about the growth rate of the high-end market (stable macroeconomy, low inflation rate, stable interest rate, increased overseas remittances and more open legal framework), analysts have put an emphasis on mid-end products worth around VND1-1.5 billion.

Projects of this kind, if not located too far from the central areas, will sell because the supply is still short. The apartments priced at below VND1 billion will be even hotter in 2018.

High-end small apartments

Five or ten years ago, high-end apartments were understood as large apartments with an area of 90 square meters or larger and with 2-3 bedrooms, while mid-end apartments meant 60-70 square meters.

However, more high-end apartments with small areas have appeared recently. The apartments, well equipped with good facilities and infrastructure, are priced at VND2-3 billion. 

The small apartments at high-end projects are mostly located in advantageous positions, a good choice for young customers who buy for themselves or for lease. 

Land sales


While the apartment market, especially high-end, is getting saturated, transactions in land plots are on the increase because of demand and limited supply. 

Most Vietnamese prefer houses associated with land to apartments in multi-storey buildings.

In HCM City, land plots are still plentiful in suburban districts such as districts 9, Binh Tan, Binh Chanh and Hoc Mon. 

Of these, district 9, which has seen rapid urbanization and establishment of high-tech park and universities, is expected to attract many real estate developers.

 

Source:  VietNamNet

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