Property prices in HCM City forecast to fall

HCM City’s real estate market is becoming a little warmer with a number of previously idle projects re-started. Although trading volume on some real estate floors has picked up gradually, it does not mean however, that property prices are surging again.
Many experts forecasted real estate prices would continue to remain flat or even decline.
The gap between prices of urban and suburb houses would narrow said Tran Du Lich, head of HCM City Economics Institute.
At present, there are people who sell urban houses to buy planned land in District 2 at cheap price, according to Tran Quang Trinh-director of An Gia real estate trader.
A source from some realtor transaction floors said planned land prices are forecasted to reduce by 10% because of cutting costs for intermediary phases. As a result, investors only sell real estate through their agents with a commission of 1.5%-2%, which equals the cost investors would have to cover for any internal sales system.
Moreover, many secondary investors withdrew from HCM City real estate market so the prices tend to decrease.
Since the start of this year, high quality products of some real estate projects have been still sold out. In particular, villa prices of Phu My Hung Co have been increased prematurely, said director of realtor intermediary firm.
Therefore, property traders should adjust prices of houses or apartments, land to suit with affordability of customers.

 

Category: Business