By Andrew Batt:
The residential property market in the Vietnamese city of Ho Chi Minh is unlikely to see a significant turnaround in 2013 despite the government’s efforts to boost the sector.
Marc Townsend, Managing Director for CB Richard Ellis (Vietnam), revealed that finance for both developers and investors continues to be a major issue in the country. Delayed project completions as well as delays in transferring properties are likely to continue, he said, noting that one villa project in the Thu Duc district of the city has discounted its prices by more than 50 percent in an attempt to attract buyers.
One bright spot, Townsend said, was branded developments. Those being built by well-known and established developers in good locations are expected to continue to attract interest.
In its latest quarterly report, the research agency noted that new condominium supply continued to decline quarter-on-quarter, with the majority of transactions taking place in the middle sector of the market. However there was a 17.2 percent year-on-year rise as a result of previously delayed projects finally reaching completion.
The report also noted that almost all transactions involve the true end-user with virtually no speculation buying.
CB Richard Ellis noted that there are currently more than 28,000 unsold condominium units in Ho Chi Minh City, almost double the figure in 2009.
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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