The real estate market in HCM City is changing because prices of land allocated for production projects in districts 2, 7, 9, Nha Be and Binh Chanh are climbing day by day.
In the past week, the price for land in An Thinh project in District 2 increased from VND12 million ($750)/sq.m to VND15 million ($930)/sq.m. It was VND14.5 million ($900), an increase by VND4 million ($250) for land and houses in Riverside project in Thu Duc district and up to nearly VND35 million ($2,100)/sq.m in Indo-China project in District 3.
In Nha Be district, the land price has risen by 2.5 times within the past one month, from VND80 million ($5,000)/1,000sq.m to VND200 million ($12,500)/1,000sq.m. Land prices in districts 2, 7 and 9 have also increased 10% during this time.
Real estate brokers explained that the scheme allowing foreigners to buy houses in Vietnam had made land prices in HCM City increase. However, real estate experts said that brokers were trying to push land prices up; it was not the result of the policy on land and housing.
About the sudden increase of land and housing prices, Deputy General Director of the Sacomreal real estate trading floor in HCM City, Bui Tien Thang, said that this was a sign of the supply-demand law, not the influence of policy.
According to Mr. Thang, the urbanisation process in HCM City is speeding up, leading to over demand for land and housing and thus land and housing prices are soaring.
He also said the scheme allowing foreigners to buy land and houses in Vietnam wouldn’t influence the real estate market in fact. However, foreigners are considered the new demanders for houses so it will have some impacts on real estate speculators.
Meanwhile, Deputy General Director of Green Land Real Estate Company, Nguyen Khanh Hung, said that foreigners who wanted to buy houses in Vietnam accounted for just 5-10% of real estate buyers in the market so the above scheme would not influence land and housing prices.
He said that economic growth, investment, fast urbanisation and infrastructure development were significant factors that drove land and housing prices up like currently.
According to Mr. Hung, the real estate market in Vietnam is developing along the general trend in the world so the market will self balance, and not depend on any group of customers.
“Unless the market is affected by a group of speculators, policies only help make the market clean, not make adverse impacts,” he said.
Some real estate experts say that the increasing prices for land are caused by the increase of prices in Vietnam in general in the past two months.
| Head of the Housing Management Agency of the Ministry of Construction, Nguyen Manh Ha, said that the scheme that allows foreigners to buy house in Vietnam was not implemented yet because it was waiting for the government’s approval. Even when it takes effect, the scheme will surely not influence the price of land and houses.
In his viewpoint, the number of 21,000 foreigners who are living in Vietnam is large but they now have stable accommodations. The above scheme simply gives more choices for them in order to call for and encourage investment in Vietnam. |
Comments