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Land prices
Regardless of market difficulties, land remains the preferred choice for investors, and demand for the segment is expected to continue its upward climb for the next few years.
The apartment market, especially the upper segment, faces many difficulties like high interest rates and tight credit which discourage people from buying flats.
Because of low liquidity, the secondary condo market too has been hit.
The excessive supply as a result has forced many developers to offer freebies and discounts to potential buyers.
However, the property segment comprising villas, townhouses, and land plots remains stable, with the primary market recording strong numbers in the first quarter.
Property services provider Savills Viet Nam reports that demand in HCM City remains strong, with the absorption rate in the primary market by 6 percentage points since the end of last year to 23 per cent.
Nguyen Nguyen Thai, Head of residential project marketing at CB Richard Ellis Viet Nam, says the residential market has seen a development trend in property investment between the apartment segment and the village and town house segments.
Many buyers are considering buying land and housing in outlying districts rather than luxury apartments in prime areas.
Instead of keeping their savings in cash at a time when inflation is very high, some people are looking at property as an investment channel to protect their assets against further currency devaluation.
This explains why land in fringe districts and neighbouring places like Binh Duong, Long An, and Dong Nai remain attractive to many.
The liquidity in the segment is also a reason for many people to shift their money into it.
In Ha Noi too, Savills Viet Nam reports, the prices of villas and townhouses rose in the first quarter – villas by 20 per cent, and townhouses by 15 per cent.
vietnamnet, vns
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