Land prices in HCM City are increasing sharply, and this would have consequences on housing, experts warn. (Photo: vov.vn) TranVan Chau, Chairman of Cho Lon Real Estate Joint Stock Company, said enterpriseswere worried that the abnormally high prices would affect their landacquisition for projects.
Ifland prices continued to rise, it would limit housing supply in the comingyears, stymieing the city's goals such as controlling home prices anddeveloping social housing and affordable housing for migrant workers, hewarned.
"Ourcompany hopes that the city government will stabilise market prices such as byquickly issuing land-use right certificates for outstanding projects andincreasing the supply of products in the market to stabilise prices.”
LeHoang Chau, Chairman of the HCM City Real Estate Association (HOREA), saidthere was inflationary pressure now.
“Realestate is considered a safe haven by wealthy people amid high inflation. Thiswill lead to higher real estate prices and fewer opportunities for low- andmedium-income earners to own accommodation.”
Also,real estate supply and prices, especially in the southern market, could beaffected by the recent land auction in the Thu Thiem New Urban Area where fourland plots were sold at sky-high prices.
NgoiSao Viet Real Estate won the land plot for2.45 trillion VND ( 1.1billion USD), or 8.3 times the reserve price.
Chausaid that land prices in HCM City, especially the central area, had been pushedto new highs, which made it difficult for developers to build housing.
Sayingthe various segments in the market were inter-connected, he said, “When asegment is affected, the other segments will also be affected.
“Ibelieve that real estate prices in HCM City will go up after the Thu Thiem landauction.”
TranDuc Vinh, General Director of Tran Anh Real Estate Company, said the highpurchase price at the Thu Thiem land auction could lead to a situationwhere rich people buy land but not use it, making it difficult for people whoneed land for living, especially low-income people.
Risingland prices were also likely to affect credit markets since real estate pricesare the basis for banks to decide loan limits, and price bubbles could createrisks for the banking system, he added.
HaNgoc Phi Hai, General Director of Khai Hung Group, said the auction had createda price bubble, and is likely to cause land prices across the city to riserapidly.
NguyenHoang, Director of DKRA Vietnam's R&D division, said there would be manydifficulties imminent in 2022, including a supply shortage caused by legalproblems and high property prices.
NguyenVan Dinh, Vice Chairman and General Secretary of the Vietnam Real EstateBrokers Association, said the short supply would continue to plague the realestate market, and increase prices further.
Hesaid the legal issues causing the problem would not be sorted out soon.
“Ithink there will still be problems in 2022.”/.
VNA
