Real estate market faces imbalanced growth
12:27, 2016/06/25
The domestic property market is forecast to face opposite ends in late 2016 with a lack of mid-tier housing and an abundant high-end segment.
The Housing and Real Estate Market Management Department explained that a majority of local customers have demands for affordable apartments with medium or small areas.
Hanoi and Ho Chi Minh City have the biggest housing supplies, mostly luxury and mid-end projects. However, transactions have remained flat recently in the two major cities.
Against this backdrop, the Ministry of Construction has asked the two localities to reassess housing demands before giving the nod to housing development projects to ensure a balance in supply-and-demand and to stabilise the market.
Housing prices in the first half of this year experienced less changes than in 2015. Prices of apartments of a number of completed or soon-to-be-operational projects in downtown Hanoi rose by 3-5 percent against the previous year.
Also in the capital city, projects with good locations, modern design and suitable surrounds or those in the pipeline hold more advantage than adjacent houses and villas.
In Ho Chi Minh city, prices of the affordable segment in the suburbs remained stable while those of the high-end segment expanded by up to 15 percent compared with the same period in 2014.
The Prime Minister has recently signed a decision allowing low-income earners who want to buy houses this year to access loans at the Vietnam Bank for Social Polices with an annual interest rate of just 4.8 percent, even lower than the rate offered in the 30 trillion VND package.
In another effort to ensure the supply-demand balance, the Construction Ministry has asked localities to promptly draw up housing development plans in line with the Housing Law, which will serve as a basis for licensing housing projects.
Investors have also called on localities to shorten the duration of dossier ratification in order to make it easier for their operation.
Hanoi and Ho Chi Minh City have the biggest housing supplies, mostly luxury and mid-end projects. However, transactions have remained flat recently in the two major cities.
Illustrative image
|
Housing prices in the first half of this year experienced less changes than in 2015. Prices of apartments of a number of completed or soon-to-be-operational projects in downtown Hanoi rose by 3-5 percent against the previous year.
Also in the capital city, projects with good locations, modern design and suitable surrounds or those in the pipeline hold more advantage than adjacent houses and villas.
In Ho Chi Minh city, prices of the affordable segment in the suburbs remained stable while those of the high-end segment expanded by up to 15 percent compared with the same period in 2014.
The Prime Minister has recently signed a decision allowing low-income earners who want to buy houses this year to access loans at the Vietnam Bank for Social Polices with an annual interest rate of just 4.8 percent, even lower than the rate offered in the 30 trillion VND package.
In another effort to ensure the supply-demand balance, the Construction Ministry has asked localities to promptly draw up housing development plans in line with the Housing Law, which will serve as a basis for licensing housing projects.
Investors have also called on localities to shorten the duration of dossier ratification in order to make it easier for their operation.
18:30, 2024/11/13
New supply to boost Hanoi retail property market
Hanoi's retail property market continues to show strong growth potential.
11:35, 2024/11/07
Vietnam, China cross-border railway project to start construction in 2025
The project will serve as a vital railway link between Vietnam and China, advancing the Belt and Road Initiative.
20:56, 2024/11/04
Hanoi approves 14 residential projects amid market challenges
The fourth quarter would see increasing supply of new apartments, with around 9,700 units to get launched.
11:34, 2024/10/26
Prime Minister urges quick construction of National Exhibition Center
Once completed, the center is expected to be a venue for major international and regional events.
20:37, 2024/10/16
Hoa Lac Park aims to become “a high-tech hub”
The Hoa Lac Hi-tech Park is being built as an open model and will serve as the core for the transformation of Hanoi into the country's leading hub for innovation.
21:22, 2024/10/01
Hanoi to build a new biotech high-tech park
The HaBiotech is designed to engage in high-tech activities that align with global trends and Vietnam's strategic policies for high-tech development, with a particular focus on biotechnology.
- Vietbuild Hanoi International Exhibition 2024 attracts over 1,200 pavilions
- Hanoi prioritizes green constructions for sustainability
- Another industrial cluster comes operational in Hanoi
- PM: All resources focused on accelerating key transportation projects
- 9 more housing projects approved for commercial launch in Hanoi
- PM wants to finish 500kV transmission line by Independence Day