Looking back at the 4 “fevers” of the Ho Chi Minh City housing market
In the 2009-2013 period, Ho Chi Minh City called for investment in projects in Thu Thiem, but many businesses were not interested in participating. This is also the time when the BT contract to build 4 main roads in Thu Thiem was signed.
The People’s Committee of Ho Chi Minh City has just reported to the Ministry of Natural Resources and Environment on the situation of the real estate market from the date of the 1993 Land Law to the effective date of the 2013 Land Law.
According to the People’s Committee of Ho Chi Minh City, over the past 20 years, the operation of the market real estate The city has gradually transitioned to a market mechanism under the management and regulation of the State.
In theory, the market usually follows an asymmetrical sine chart, depending on factors such as: Law of value; competition rules; supply – demand relationship; regulatory mechanisms and policies of the State; investment behavior of enterprises…
In fact, the housing market in Ho Chi Minh City often goes through development stages such as growth – stability – fever – freezing – depression – recovery and growth again.
In particular, from 1990 to the first half of 2014, the city’s housing market experienced three “hot” waves. The first time took place in the period 1993 – 1994. The second time took place in the period 2001 – 2002. The third time took place in the period 2007 – 2008. In particular, in 2007, the real estate “bubble” fever hit top.
In the period of 2016 – 2019, the real estate market in Ho Chi Minh City experienced the “fever” for the 4th time. Land prices increased sharply not only in Ho Chi Minh City but also in provinces and cities across the country until the Covid-19 pandemic- 19 happens.
Along with that, the real estate market in Ho Chi Minh City also had a “freeze” situation twice. The first time was in the period 1995 – 1999. The second time happened in the period 2002 – 2006.
From 2009 to 2013 was a period of explosive inflation, the State Bank tightened monetary policy, increased interest rates, restricted lending, and foreign investment flows through intermediary financial institutions. (FII) stop pouring into real estate.
During the aforementioned period, the People’s Committee of Ho Chi Minh City is calling for investment in projects in Thu Thiem new urban area. However, in the context of a declining market, investors are less involved and tend to withdraw from the market. There are cases where enterprises have invested in Thu Thiem New Urban Area but then had to withdraw.
According to the People’s Committee of Ho Chi Minh City, this is also the time when the City signed the BT Contract to build 4 main roads in Thu Thiem New Urban Area.
Mr. Phuong
at Blogtuan.info – Source: vietnamnet.vn – Read the original article here
