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Posted by Homenext on 22 September, 2018
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Sales of land plots have been coming down in Ho Chi Minh

Sales of land plots have been coming down significantly in districts 2, 9 and Thu Duc, where so-called land fever had broken out over the last few months.

Sales of land plots have been coming down in Ho Chi Minh

Sales of land plots have been coming down in Ho Chi Minh

 

Le Hoang Chau, chairman of the HCM City Real Estate Association, said that according to property brokers in these areas, sales volume had dropped by around 40 per cent compared to the peak period last month.

The land liquidity there has fallen by 60 per cent compared to the previous months. “It’s difficult to predict the status of the market right now,” he said.

Chau attributed the situation to the limited supply of new land plots available for sale. Thus, investors have few choices, while the prices in the secondary market are too high.

Land prices have increased by 30-50 per cent compared to the end of last year and by 100-200 per cent in the past 12-18 months, he said.

The latest development has seen new investors entering the market with caution, while land speculators are finding it more difficult to sell their land plots.

New investors are waiting rather than rushing into the secondary market, resulting in a significant drop in land transactions, according to property experts.

Experts said the current slowdown was a positive sign that was needed to prevent a real estate bubble or crash.

Meanwhile, buyers of housing in which they will live believe that current prices are too high, and therefore they are reluctant to take out bank loans because of the fear of an increase in interest rates.

In addition, sales of land plots in the city’s districts 12, Binh Tan and Binh Chanh have declined recently.

According to a property company which specialises in land plots, the number of successful transactions in these areas has plummeted by 70 per cent compared with the first five months of the year.

The price of land plots in these areas in early January was an average of VND15 million (US$658) per sq.m on Pham Van Hai, Le Minh Xuan and Tan Quy Tay roads, but now has soared to VND25-27 million per sq.m.

The Government decision that has made it more difficult to divide land for sale has also contributed to the decline in land sales, according to Viet.

Investors have become cautious in buying big land plots to divide land for sale to secondary buyers.

Source: VNA

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