Land along the center of Ho Chi Minh City is also an attractive investment channel in 2019?
Land along the center of Ho Chi Minh City is also an attractive investment channel in 2019?
Analysis of the land plot market in Ho Chi Minh City in 2019, Mr. Nguyen Hoang Tuan, General Director of Yeshouse Joint Stock Company, said that it will be a breakthrough segment this year, still an attractive investment channel.
Land in the past year is considered a segment favored by many investors because of the diversity and abundance in the exploitation of this segment such as: Building houses, building apartments or rooms for rent ... bringing benefits High profit for investors (investors).
According to Mr. Tuan, there are 3 factors that make the land area near the Ho Chi Minh City and surrounding areas still a favorite segment of investors in 2019. Specifically:
Firstly, from 2016 to 2018, the situation of land fever continued to take place in the city center, causing the land price to be pushed up high, making real estate in the urban districts of Saigon become expensive. Meanwhile, the price of land in suburban areas is still quite soft compared to the potential of socio-economic development, so the trend of investing in suburban areas attracts investors.
Secondly, the story surrounding the policy, the plan of not developing new projects in the existing center of Ho Chi Minh City until 2020 seems less hot. This limits investment opportunities as well as property ownership of people in the central area. But looking further, this policy has a positive impact on the surrounding area of the city, is an opportunity for the market area along Ho Chi Minh City; especially satellite cities that break out and balance demand and supply as well as regional infrastructure.
From these two factors, Mr. Tuan acknowledged that in the inner city of HCM City, investors mainly focused on developing licensed projects, secondary investors will buy and sell. while the products invested in the previous year, very few new projects came out. This means that the central real estate price may increase, far exceeding the demand of real buyers.
Thirdly, in this period, Ho Chi Minh City is continuing to build and expand the transport infrastructure system in the vicinity of the city, creating satellite urban areas as a driving force for economic development. Many arterial roads are widened and high-speed roads are built to make connections quicker, moving from the periphery to the city center is also easier. This motivates investors to promote the exploitation of potentials along the city. At the same time, attracting the interest of buyers on the periphery.
The average price increase according to Tuan is at least 20% / year
In fact, population relaxation is inevitable, when urban centers are increasingly crowded, traffic jams. This trend will increase in HCMC. While infrastructure has been continuously invested and built, it has created a firm premise for the neighboring area market in Ho Chi Minh City. There are a number of large infrastructure projects, which have a strong impact on the real estate market in Ho Chi Minh City in the near future but An Suong underground tunnel, high-speed snow like Ben Luy-Long Thanh, routes Belt. ...
Mr. Tuan also said that with the current capital attraction, the land plot, coastal apartments and neighborhoods in HCMC have fallen to the lowest level of 20%.
“The ground will still be a breakthrough segment in 2019. The breakthrough comes from investment returns when this strong economic potential area is more developed and synchronized. In parallel, the diversity and richness in exploiting this segment such as building houses, building apartments or rooms for rent, ... creates its own advantages for this type, "Tuan stressed.
According to Yeshouse Director General, the average growth rate of 20% in the neighboring housing market in Ho Chi Minh City is stable growth, not too hot in 2019. This helps the market develop sustainably oh As before.
Ha Vy
