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Real estate fever is blowing fears of a 10-year crisis

Saturday - 30/06/2018 21:52
Real estate prices surpass 100% in a year as signs of a real estate bubble are pumping.
At the seminar on real estate - Opportunities and risks held by Cafeland on June 29, many experts have expressed concerns, concerns about the real estate market crisis.
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Bank economist Nguyen Tri Hieu forecasts that the real estate market could fall into a bubble if credit continues to flow into real estate. Credit growth is now indirectly forming a real estate bubble.

In Mr. Hieu's view, the sign of a bubble in the market is when real estate prices rise 100% within a year. The expert said the real estate bubble might break out by 2019, which is equivalent to the 10-year crisis of the market.

Meanwhile, senior director of CBRE Vietnam, Duong Thuy Dung brings to the seminar a more general view of the real estate fever in Ho Chi Minh City. According to CBRE's land price growth map in HCMC in 2016, two years ago, urban land prices of more than 10 million people climbed rapidly.

Specifically, the center of District 1 land prices increased 100%, District 4 and Phu Nhuan increased 50% while Thanh Da area increased by 100%. Moving out of the central core area of ​​Ho Chi Minh City, the price of land in district 2 of the Hanoi Highway increases 50-80%, of Thu Thiem and Thanh My Loi increase by 100-150%. In particular, land prices continue to trend up, from 2016 to 2017 and the first months of 2018.

CBRE Vietnam's director, Mrs.Duong Thuy Dung, said the housing market is facing huge challenges due to high land prices. Land fever makes new investors more difficult to enter the market.

Mrs. Dung said that trading volume on the market began to show signs of deceleration in the first months of the year. If trading and investment markets continue to decline until the end of 2018, there may be a negative reaction.

Source: Vnexpress newspaper

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