As the State Bank of Vietnam has tightened the control over real estate loans to ensure sustainable development of the market and safety of the banking sector, property transactions have fallen down in both Hanoi and Ho Chi Minh City in the first six months of the year, experts said at a recent meeting in Hanoi.

A view of the Phu My Hung residential area in District 7, HCM City (Photo: VNA)

Nearly 13,000 housing products were rolled out in the Hanoi market during January-June, as compared to 8,899 in total number of successful transactions, accounting for 76.05 percent and 68.9 percent of the amount the same time last year, respectively.

However, the capital real estate market experienced a good absorption rate of 68.6 percent, particularly housing products were sold fast in the second quarter as the absorption rate reached 84.7 percent. 

Ho Chi Minh City had the same trend when it saw a fall in both housing supply and transactions in the period.

More than 10,700 products were put up for sale, making up only 39.1 percent of the amount offered in the first half of last year. Meanwhile, 8,560 units were transacted, or 46.8 percent of the same time last year.

The country’s largest property market also had a high absorption rate of 79.9 percent.

Other localities with strong realty market development in recent time like Da Nang city, Nha Trang city, Quang Ninh province, Binh Duong province and Dong Nai province also saw a fall in both supply and number of transactions. This was due to the fact that local authorities and credit institutions enhanced supervision over property projects and lending for them.

According to Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokerage Association, the real estate prices increased slightly in the six-month period; however, the market was still stable, and there was no sign of housing bubble.

Land lots were the most attractive product in the period, sold at stable prices, he said, adding that Hoa Binh, Yen Bai, Binh Dinh, Phu Yen and Binh Thuan arouse as emerging markets. 

Dinh said that housing supply and transactions in the second half will surge dramatically in the Hanoi market. Housing prices is predicted to fluctuate under 5 percent, and the absorption rate will remain high as well. 

The Ho Chi Minh City property market is promising during July-December as local policy is expected to boost both supply and transactions. Houses will be on good sale, however, at high prices, he added.

Regaring the condotel segment, Dinh said most of the products offered in the first half were developed in 2018, and the absorption rate was only 25.02 percent. 

The segment has not been well developed due to limitation in new projects, a lack in favourable policies, and shortage of customers’ confidence. 

“Unfavourable policies and unsound management and operation of condodels have made investors feel unsecured. Most of them have invested in projects developed by prestigious and experienced companies”, he said.