Why now is the time to revisit HCMC
Many people are questioning whether now is the time for property investors to return to the Vietnamese market.
Marc Townsend, Managing Director of CBRE, said: "The property market sees many good pedestals, from the economy's recovery to support policies, etc. It is the time for investors to start returning to the market.
Townsend was speaking at a press conference announcing a market report on Ho Chi Minh City's property market for the first quarter help last month.
According to CBRE, the economic recovery and the strong development of infrastructure are two of many factors consolidating homebuyers' confidence.
Besides, the strong growth of the stock market and continuous reduction of deposit interest rate have started stimulating a new capital flow poured into the market by investors.
In Q1 2014, sales from the HCMC apartment segment increased and reached a 9.8 percent quarter-on-quarter increase and a 92.2 percent year-on-year increase with around 2,600 apartments being sold to the market.
The noticeable thing is that not only mid-class apartments but also hi-end apartments have been recently favoured. Many people have bought hi-end apartments to offer for lease.
Townsend said: "This is the first time after many quarters, the market has witnessed all segment being eventful again. Many enterprises pay attention to introducing and advertising projects again before offering them for sale. This shows that the confidence in the market is recovered.
He added that the market has seen new shift, the eastern of HCMC – where the most developmental infrastructure projects such as Long Thanh – Dau Giay expressway, Ha Noi highway, Thu Thiem tunnel and road are being paid attention to by investors.
According to CBRE's survey, in HCMC, 5 buildings are under construction and are expected to be completed within 2014. These are official buildings in District 1, 3, and 10, including MB Sunny Tower, SGGP Tower, Vietinbank Tower, Vietcombank Tower and Viettel Tower. Of these buildings, only MB Sunny Tower was in operation.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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