- Deputy General Director of Sales and Marketing Danh Khoi Real Estate Joint Stock Company (DKR), Nguyen Loc Hanh forecasts that the real estate market in Ky Hoi year is facing many challenges of legal risks (limited). licensing new projects, inspecting housing projects) but there are still bright spots in the gray area. Hanh predicts that there will be four real estate investment trends still attracting capital in the next 12 months.
- In the years 2016-2017-2018, the ongoing land fever has pushed the price of land in Ho Chi Minh City to an extremely high level, making real estate in urban districts of Saigon become expensive. This created a driving force for the trend of upstream investment into the suburbs to increase heat.
- Moving back to the central edge of Saigon, even suburban districts, for real estate development will be the general trend of Ho Chi Minh City real estate market in 2019. Real estate in urban districts has a price bracket This is a key area that is restricted from licensing new projects. As the price of real estate in the center is increasingly expensive, large capital flows, high costs, people with "thin" capital are unlikely to have access to housing in these areas, so the strategy of centrifugal investment ( away from the center) will be more investors choice.
- However, the trend of real estate investment in suburban areas in Saigon may only develop mainly in 2 poles of the East - South of the city in 2019, in which the East has a bigger position thanks to infrastructure investment. This area is more active than the South.
- Mr. Hanh said, the urban development strategy of Ho Chi Minh City for more than a decade has been announced by the Department of Construction, high-rise apartments will continue to be the indispensable housing trend of the Saigon real estate market. Gòn. In the next 10 -15 years, the growth rate of apartments in this megacity over 10 million people will be stronger than today. The city also aims to reduce the development of individual houses.
- Therefore, the trend of condominium investment in property is considered to be timely, it is likely that this investment trend will increase in 2019. The concept that Vietnamese people are conservative and prefer to stay in the mainland. It is no longer true for the majority of the urban population. If in 2018, the trend of condominium investors and townhouses is popular among people under 35 years old, in 2019, it is likely that investors' age will join this trend. rise above 35.
- The reason is that Ho Chi Minh City apartment complex is having a strong development with security, utilities, services, living environment to better and better traffic connection. The trend of investing in apartments and townhouses in 2019 also clearly differentiates 2 demands in the real estate market in Saigon. The apartment meets the needs of enjoying a comfortable life. Land real estate meets investment needs with high profitability expectations.
- The rule of "the water flowing to the low place", ie flowing to the lowest area, is causing the wave of land collection in the districts and communes of Saigon to increase. The districts with the lowest land price in Saigon can attract medium-sized capital flows and become targets of investors in 2019.
- Currently Ho Chi Minh City has 5 suburban districts including: Cu Chi, Hoc Mon, Can Gio, Nha Be and Binh Chanh all have lower prices than the remaining districts. However, there are currently 3 districts classified as "soft" lowest price areas in Saigon including Can Gio, Binh Chanh and Cu Chi.
- These "low-lying" districts have residential land prices of less than VND 20 million per m2 and agricultural land of several million VND per m2. If hunting large lots, the price level is still very low, suitable for long-term capital flows. The low-lying real estate is suitable for long-term investment demand, not attractive for residential demand due to the lack of infrastructure connection.
- For investors with large, even extremely large capital flows, putting money into real estate with high commercial value continues to become a trend in 2019. Real estate investment exploits commercial value. (rental, business) has a great advantage in that it is a safe shelter, anti-slipping in money and has the potential to increase value over time.
- Investors targeting real estate with high commercial value often do not focus on cash flow from leasing (less than 4% on average), but still lower than bank deposit. However, holders of these assets will be able to make a double profit if they choose unique properties (no substitutes) as scarcity often pushes up the value of assets, The opportunity to increase rents in the long term is huge.
- Product lines of commercial real estate for rent include: office buildings, street houses, commercial townhouses in the project to access main roads or ground floor of high-rise projects. , commercial kiosks, business centers ...
- Mr. Hanh added, as of early 2019, business premises (office, commercial) lease contracts in the busy districts of Ho Chi Minh City have recorded an increase in rent next year compared to the previous year. 7-10%.
