About Vinh Sang
Real estate bubble hard to happen in the next 2 years
Le Hoang Chau, President of Ho Chi Minh Real estate Association (HoREA), predicted that the risk of Real estate bubble hard to happen in 2015, even ịn 2016.
According to Le Hoang Chau, this prediction is based on Viet Nam’s economy, which is on the upward with credit increasing at 12.62% in 2014, expecting around 16% in 2015 while credit increasing in 2007, a peak of real estate bubble was at 37.8%.
On the other hand, the Government is still keeping macro-economic under control: inflation controlling, tie and flexible monetary policies, commerce banking re-structuring. It results a good consequences for the time being: there is no credit loose, bad debt is under control and heading to a sensible level, real estate trading is still happening as normal, there is also no speculation and virtual prices on real estate market.
In the first 7 months of 2015, HCMC’s real estate market is still on the way to recover, including all of its market segmentation.
Immediate and big-scale houses segmentation are the most welcomed. A lot of luxury real estate projects were begun at the same time. In the first 6 months of 2015, real estate transactions in HCMC considerably increase with over 7.000 successful transactions, 2.8 times more than the same period in 2014.
Analyzing on causes that motivate real estate recover recent times, Mr. Le Hoang Chau pointed out that this was the huge effort of real estate community in re-structuring companies, investments and developing cooperation. On the other hand, the adjusting of laws which impacts on real estate market results a positive prospect: belief of consumers and bank rising make transactions dramatically increase; real estate market is now able to appeal concerns from foreign investments.