Real estate businesses rushed to sell land and townhouses
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Real estate businesses rushed to sell land and townhouses

A real estate brokerage investment company headquartered in Da Kao Ward, District 1, Ho Chi Minh City sold many apartment projects throughout 2015 and the first half of 2016, but from the second quarter onwards, the business began to

In April 2016, this unit started to participate in selling ready-built townhouses in District 9. In July, the business strongly invested in a red-book land project priced at 750-800 million VND for a 50m2 plot near the axis.

Meanwhile, a real estate business headquartered in the South of Ho Chi Minh City has set aside a sizable budget to invest in nearly 1,000 land plots in Nha Be district, expected to launch on the market in the third quarter of 2016 with the expected selling price.

Not staying out of the trend, a real estate service joint stock company headquartered in Cau Kho ward, district 1, Ho Chi Minh City is selling apartments located in Binh Thanh district and also going upstream to Dong Nai to trade land.

Even a unit specializing in brokerage of mid-range and high-end apartments throughout the East and South of Ho Chi Minh City such as Khai Hoan Land recently caused surprise when announcing investment and distribution of a high-end townhouse project (townhouse).

Land and townhouses are warming up and have high liquidity, so businesses are moving to this segment.

Particularly, Cat Tuong Duc Hoa Real Estate Joint Stock Company announced that in 2016 it was determined to `make sure it lasts` by conquering the market for land under 400 million VND and ready-built townhouses priced under 800 million.

Facing the wave of shifting to the land-based real estate segment, experts evaluate this as a positive trend, showing the ability to self-balance supply and demand and restructure the basket of goods in the Ho Chi Minh City market very professionally.

General Director of Techcomreal Company, Nguyen Xuan Loc commented that currently the supply of apartments is very large, especially the high-end product group.

According to Mr. Loc, this abundant source of goods puts more or less pressure, causing competition in the apartment segment to grow and become more and more fierce.

General Director of Exim Real Estate Company – Tran Thi Cam Tu analyzed that the real estate market is shifting from the apartment segment to the land segment with red books and townhouses for the following 3 basic reasons.

Firstly, the mentality of Vietnamese people in particular and Asian people in general still favors real estate with the mindset that no matter how rich or poor, they must have an inch of land to work on.

Second, urban land funds will become increasingly limited.

Third, the trend of population expansion in Ho Chi Minh City is increasingly strong.

According to Ms. Tu, the necessary and sufficient conditions for landed real estate to be accepted are solid legality, clear records, and no risks.

In addition, according to this female expert, credit support for landed real estate also contributes to stimulating this market to grow.

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