Real estate market in Ho Chi Minh with the trend of increasing in demand of cheap to middle segment in 2011

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) February 20, 2011 -- It’s positive to look at the estate market in Ho Chi Minh City in 2011. With the effects of Decree 71 and circular 16, it helps to make the market more explicit, prevent speculating and make it more convenient for customer in their purchasing process.

VIPC’s analysts- a fund management corporation along with other experts in Vietnam have estimated that there will be a decrease in high class apartment segment while the cheap to middle segment witnesses a rise in trading activities. This can be explained by some reasons. Firstly, there is an increase in the demand of customer for affordable houses in Southern and even from Northern areas. Secondly, while gold market, currency market and stock exchange market still unstable- indicated by VIPC ‘s investment experts in security and private equity, affordable apartment segment still is a safe channel for investors.
While the real estate market have a rise trend in low to middle price segment, investors still need to be more careful. According to some reports from CBRE, there are more than 10000 apartments left from last year. It is said that due to the financial crises, the high interest rate in particular, investors could only consume about 50% in total 22000 apartments being on sale from 55 projects. In similar with CBRE, Vietrees’s research pointed out that the buying ability was low also because at that time, there were still about 40000 available apartments being on re-sale process.

2011 will be a burning year of real estate projects in Ho Chi Minh City when the supply increases, provides the market about 20000 new apartments. This also creates a harsh competition in the market but also bring benefits towards investors. To attract customers, there will be a running in adjusting interest rate, the selling price as well as loan policies. To maximize profit and reduce risk in investment activities, the role of fund management companies is important. They have high prestige in real estate field with professional and well-trained analysts having high skills so that they are able to make wise, timely and macro decisions and this will bring long term profits to customers.

Angela Trang Pham
Sales & Marketing Department
marketingteam@vipc.com.vn
http://www.vipc.com.vn

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