Wednesday, 26 Jun 2019
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ECONOMYREAL ESTATE

Vietnam property inventories shrink to US$998 million as of November 2018

Updated at Wednesday, 12 Dec 2018, 11:49
The Hanoitimes - The majority of inventories come from mid- and high-end housing projects (priced at least VND25 million (US$$1,086)/sq.m.
Vietnam’s real estate inventories were reported at VND22.97 trillion (US$998 million) as of November 2018, down 88% from the peak in the first quarter 2013. 
 
Deputy head Vu Van Phan at a meeting on Dec 11. Photo: Cafeland.vn
Deputy Director of the Housing and Real Estate Market Management Agency Vu Van Phan at a meeting on Dec 11. Photo: Cafeland.vn
Unsold products belong to projects without sufficient infrastructure or areas far from the central business district, according to the Housing and Real Estate Market Management Agency under the Ministry of Construction. 

The majority of inventories come from mid- and high-end housing projects (priced at least VND25 million (US$$1,086)/sq.m. Meanwhile, the supply of affordable housing remains thin. 

According to the agency, demand for low-cost housing makes up 70%-80% of the total market but this housing segment currently meets roughly 31% of the total area (12.5 million sq.m) by 2020 as the government planned.

Making remarks on the property market in 2019, the agency’s Deputy Director Vu Van Phan said that there would be no “property bubbles” in the next year but price hike might happen in some new residential areas with good utilities. 

Nguyen Vu Thien Diem, director of Thien Minh Group, meanwhile predicted the growth of apartment blocks, saying that this segment remains worth to invest in. 

Vietnam’s property market has recovered for the past three years after year-long standstill which was caused by speculation-caused bubbles. 

After the quiet transactions which lasted for years, the government has tightened non-performing loans, mostly lending in property. 
Linh Pham
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