Ho Chi Minh: Value of real estate inventories has plummeted

HCMC – The total value of property inventories had plummeted to a little more than VND24 trillion as of June 20, down by VND700 billion compared with the first quarter of this year, according to a report by the Department of Housing and Real Estate Market Management under the Ministry of Construction. Nguoi Lao Dong newspaper cited the report as saying that the property market maintained steady growth in the first six months of 2018, rising by 4.12% year-on-year. The real estate sector recorded the registration of some 3,300 new firms, up by a staggering 44.2% year-on-year.

According to a report by the Department of Housing and Real Estate Market Management, the local property market maintained stable development over the first six months of 2018, rising by 4.12% year-on-year.

The sector saw new foreign direct investment approvals totaling some US$4.9 billion. The total capital of property projects now underway is estimated at VND3,500-4,000 trillion. The total value of property inventories as of June 20 slipped to VND24,072 billion. Real estate loans account for 6-8% of total outstanding loans, remaining under control. According to the Department of Housing and Real Estate Market Management, medium- and high-end properties have faced a slowdown, but low-cost condo buildings and houses have risen slightly due to high demand and limited supply.

Nguyen Trong Ninh, head of the department, noted that the real estate market will not see major changes in the rest of the year, insisting that stable development was more likely. He, however, warned property firms of the fever for vacant land in some localities as several individuals have been taking advantage of the plan to establish special economic zones and large traffic projects, such as Long Thanh International Airport, metro lines in HCMC and expressways, to spread rumors of land price rises.

Source: The Saigon Times Daily