Ho Chi Minh City's realty market slows before Tet

January 27, 2011 | 15:02

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Traditionally, the time leading to Tet has been good for the realty market in Ho Chi Minh City, but this year’s markets are quiet.

HCM City realty market sluggish

The scene over the entire real estate market in Ho Chi Minh City can be described as gloomy.

Business at realty offices has ground almost to a halt. Developers are choosing to hold on to their assets instead of selling in a weak market.

There are few firms introducing new properties onto the market, and surveys of public opinion say that people are hoping for more favorable commercial conditions after Tet.

Even promotions and discounts are not making much difference. Hoang Anh Gia Lai Group has offered a discount of 4 per cent off interest rates on loans for apartment purchases. Still, the market seems to be at a standstill.

CBRE Vietnam attributed the slowness in the markets to a trend that started in the fourth quarter last year of 2010. At the time the value of gold varied greatly and interest rates increased sharply. This lured investors away realty market, which requires a large investment.

Rudolf Hever, of CBRE Vietnam, said: “Investors are watching and waiting for lower prices and interest rates in the next months.”

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