In the period 2006-2015, after 5 years, the scale property market HO CHI MINH CITY reached the growth rate almost doubled.
HO CHI MINH CITY apartment market deceleration/apartment a billion in Saigon fire items, price increases
In the period 2006-2015, after each 5-year cycle, the scale of real estate market in HO CHI MINH CITY nearly doubled. Photo: Ballet Dancer
The real estate craze in HCMC have occurred at times in 1993; 2001-2002; the second half of the year 2010; especially the rush of real estate “bubble” the peak in 2007.
HO CHI MINH CITY real estate Association has just published a report of real estate market in this period of 2006-2017. The study points out the many rules of the real estate market in Saigon, which mentioned the dramatic growth since the year 2006 to present.
Specifically in the 2006-2010 period, the growth of the market is 0.9 times. 2011-2015 phase reached 1.6 times growth. For more than a decade, the growth of the scale of the real estate market contributes to promote the socio-economic development of the city, keep the leading role of the economy in the country.
From the year 2016 to June 8/2017, the real estate market started showing signs of slowed in the segment from apartment 3 bedrooms up and vacation property. However, overall the market is still in a growth cycle.
According to research by the Association, during the process of formation and development, HO CHI MINH CITY real estate market typically undergo 7 milestones: growth, stability, hot sauce, freeze, serenity, recovery and growth is finally back.
The real estate market tends to grow up, down along with the growth of the economy. The factors impacting the market include: the process of urbanization; development of urban infrastructure (traffic); the system of financial policy, monetary, credit; the legal system and the management of the State from the central to local levels.
The Association forecasts, from now to the year 2020 property HCM will step into a strong restructuring cycle to resolve supply-demand phase deviation phenomena are on the high-end segment. The market will have a strong shift to the segment of small and medium area housing prices, affordability for real needs are very large, high liquidity.
The market fell on recession or crisis freezes at times in 1995-1999, early in 2008 to mid-2009 year (considered the most heavily), and phase in 2011-2013. Then, the real estate market to recover, regain the momentum of growth in the period 2003-2006; in late 2009 to mid-2010; and the period from 2013 to date.
When the real estate market suffered depression, fever (bubble) or freezes are serious impact to the economy. The negative effects of this period have strong impact on the real estate business or related fields, the banking system, the secondary business investors, consumers and workers, labour.