Which segment drives real estate market until year end?
In the first three quarters of 2016, real estate market saw lots of complicated movements. The question now is that which segment will lead the market in the last 3 months of the year?
Year end is always the busiest time for real estate market. In the current context, when money is continuously flowing in real estate, the market is expected to be more active than it was in the three previous quarters.
Specifically, in terms of FDI, as of September, FDI poured in real estate hit over $1 billion. The sector becomes the Vietnam’s second largest FDI attractor, just behind processing and manufacturing industry. Experts said, in the last quarter of this year, capital inflows are likely to continue to rise with a series of big investments from several major investment funds in Japan, Korea, Singapore, etc.
In addition to FDI, remittance is also a huge source of money which is likely to flow in Vietnam property market at year end. According to statistics, up to 22% of remittances are into real estate. Remittances to Vietnam are forecasted to increase rapidly from now until the end of the year. This is considered a driving force as well as a greater demand for medium and luxury housing segment in local market.
Notably, when banks lower interest rates, people tend to invest their idle money in real estate. The shift is also an advantage for the growth of real estate market.
With these positive signals, Vietnam property market is expected to grow significantly in the fourth quarter. However, the question now is that which segment is the leader of the year end market?
Real estate experts said the highlights of the market at the end of 2016 would be projects with prime location, unique design and prestigious developers.
In particular, with limited supply, affordable and medium segment can see price increase. Meanwhile, price at high-end segment is expected to slow down due to oversupply.
Ms Do Thu Hang, Head of Research at Savills Hanoi said: "Affordable housing segment has a lot of potentials for price increase later this year, when the supply continues to fall but demand remains strong."
According to Ms Hang, in the last quarter of this year and towards 2017, prices of the apartment segment, as well as villa and townhouse will continue to make positive changes. Regarding the tourism real estate, many experts believe that this segment will see strong growth in supply but liquidity will be harder.
(Source: Xay dung)