Some experts predicted, after the Fed announced the rate hike, the market would be more active again. However,...
Some experts predicted, after the Fed announced the rate hike, the market would be more active again. However, there are some comments apprehensive about some negative effects of the move to the real estate market.
Some experts predicted, after the Fed announced the rate hike, the market would be more active again. However, there are some comments apprehensive about some negative effects of the move to the real estate market.
In summary
The Fed is likely to raise interest rates, along with action to increase the rates of the National bank in August,many experts believed that the real estate market would see challenges but also immense opportunities. According to experts, the real estate company should have taken action accordingly, sources prepared to take advantage of opportunities and limit the negative impact of this move.
Most likely, in September or later than October, the US Federal Reserve (Fed) will conduct US dollar interest rate increase. Anticipating this move of the United States would cause a strong impact on the global economy, particularly towards emerging economies. Vietnam's economy isn’t exceptional.
According to Mr Le Hoang Chau - Chairman of Hochiminh city Real Estate Association, as the Fed raised interest rates, the dollar will depreciate VND money as well as attractive, gold is no longer a safe haven when the US economy is on recovering. Therefore, investment channels and optimal safety for investors is real estate.
So, from August (this time falls on lunar July - September is considered to be a disaster for housing sector Vietnam), numerous investors have massively launched projects with a volume of transactions impressive work
In HCMC, not afraid to psychological reticence in this series intolerance month, a lot of projects restarted and launched sale opening. The City Gate Towers project is located on Vo Van Kiet boulevard restarted after the Creed’s investment in August this year, which falls on July lunar calendar, about to finish now sells 100 products. The consumption in July is more prosperous than in previous 4 months.
As announced by Sacomreal, in August 23th the company has introduced to the market 238 villa resort, the Jamona Home Resort project. Right in the date of launching, there were 216/238 villas traded successfully. One week later, Sacomreal continued to hit the market over last round with 200 luxury apartments of Jamona Apartment in District 7. Before that, during the first announcement, this project had heaten up the real estate market in South Saigon with more than 1,000 customers participated in the opening ceremony of sale, 800 apartments successfully sold in 2 months.
Also in August, Dat Xanh had the ground breaking of its Luxcity District 7 project with scale of 426 apartments and noted arrivals buying apartments up to more than 90% products. Besides, projects IDICO got over 400 successful transactions in the same time.
Similar to HCMC, in Hanoi, supply and purchasing power of the housing market in this round is also warming. The condo projects including luxury and popular are opened sale as Goldmark City, Mipec Riverside, Mulberry Land, Gamuda Gardens, ... Thang Long Victoria, Gamek Tower ...
EZ Property floor said that they still conducted the sale openingfor new projects such as Green Star (Pham Van Dong), Đồng Phát (Hoang Mai). Mr. Toan said: “Compared with July last year, transactions in July this year with the sudden change. The number of successful apartment sold 2 times the same period due to the impact good momentum from the market in general.
Mr. Pham Thanh Hung - Vice President Real Estate Market of Cengroup said that this unit still open to sell a wide range of apartments in the project as Gamuda Garden (Hoang Mai), ParkView Residence, GoldSilk (Ha Dong), Goldmark (Cau Giay) ...
Overall the projects have good location, currently price at the at sale opening periodrather competetive. Some experts predicted, after FED announced the rate hike, the market would be more active again. However, there are some comments apprehensive about some negative effects of the move to the real estate market.
According to Ms Vo Thi Diu Hien - Deputy General Director of Sacomreal, when FED raised interest rates, the national bank will adjust prices and raise interest rates VND. The increase in interest rates impacts to the real estate companies, especially to companies using high financial leverage. Thereby it increases financing costs and impacts strongly to their profitability. On the other hands, rising interest rates also significantly influences the access of bank loans by customers.
"Besides, the high class projects using the equipments, external building materials were under large pressure when rising prices caused by price USD capital projects team. Therefore, the optimal solution for real estate companies should be the balance of capital, limited use of loans and increasing the use of local goods. On the other hand, the real estate company selling the project should open ahead of time to take advantage of rising interest rates the program deals ", Mrs. Hien said.
According to Mrs Hien, a strong possibility that the Fed will make a rate hike, the crux of the problem is just the moment. Therefore, the real estate company should have taken action accordingly, prepared to enlist sources of opportunities and limit the negative impact of this move.
According to the Department of Housing Management and Real estate Markets (MOC), through data reported by some investors as well as some real estate trading floors, in August, the volume of transactions of the real estate market continued to increase from 5-6 % from the previous month and more than doubled over the same period last year.
Specifically, Hanoi had around 1,900 successful transactions, up about 5 % from the previous month, up nearly 2 times more than the same period of 2014. In HCM city, in August with 1,800 successful transactions, up about 6 % over the previous month and increased by almost 2 times over the same period of 2014.
Source: Cafef