Real estate bubble burst unlikely in 2020: ministry

Real estate bubble burst unlikely in 2020: ministry

The local estate market will not see a bubble burst this year, and a land price upsurge is expected in planned special economic zones and new urban areas, the Ministry of Construction told a press briefing on January 2.
18:30, 09/01/2020
A bird's eye view of Phu My Hung Urban Area in HCMC's District 7. The local real estate market is forecast not to see a bubble burst this year. (Photo: VNA)

The briefing was aimed at reviewing the local property market in 2019 and introducing plans to develop this market in 2020, reported VnEconomy news site.

Data from the ministry shows that over 83,000 successful property transactions were conducted in the country last year, dipping 26% versus the 2018 figure. Of this, the number of transactions related to resort properties accounted for some 6,280 units, also down 20% year-on-year.

As for property prices seen last year, the prices of Hanoi-based apartments in the last quarter picked up some 0.54% compared with the year-ago period, and the prices of houses also rose 3%. In the HCMC market, the prices of apartments and houses respectively increased by some 3.52% and 9% versus those seen in 2018.

The credit outstanding balance in the sector reached over VND486 trillion as of the third quarter of last year, which remained more stable than that recorded in 2018.

Based on these figures and various factors that may affect the sector, the ministry forecast that a real estate bubble burst probably would not occur.

Further, some segments could experience a downward trend due to the supply-demand mismatch or the lack of effective solutions to remove obstacles, especially those faced by certain property projects in Hanoi and HCMC.

Earlier, speaking at a meeting gathering the Government and local authorities last week, Minister of Construction Pham Hong Ha announced that instructions and solutions for handling issues such as a real estate bubble burst and land price upsurge were available, in addition to sets of criteria for adjusting tourism properties, including condotels and officetels.

Minister Ha urged local authorities to review and classify detailed zoning plans that were not adjusted in line with prevailing regulations and to report the solutions to the prime minister this quarter.

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