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Crazy Gold Market – “Golden Time” for Housing Purchase? (16 August 2011 11:04)
Previously, “dancing” gold prices would drive real estate prices moving; however, gold prices surge to VND4.6 million/tael, property market nearly stays cold. The frozen market with bleak transaction, especially in the month considered “forsanke spirits” has made real estate market unable to join the race.
This is the fact in Hanoi in particular and all over the market in general. According to report of Collier Vietnam, as of Q2/2011, supply in Hanoi see a 4time- increase compared to that in 2010. Now, consumers become real king – they can choose suitable apartment, land plot with appropriate angles, direction and area, etc. – which were earlier just privilege for some persons in foreign affairs agencies or high-class.
For semi-detached houses and land plot, an owner of a trading floor said property prices sharply decrease from VND50 million/sqm to VND30-35 million/sqm. With amount of about VND3 billion, customer can now become an owner of land plot in Kim Chung – Di Trach, Thanh Ha, etc. in order to cut losses, real estate retailers unwillingly sell products at low prices, yet this fails to attract many customers. They mainly focus on low-liquidity products, form VND1-2 billion. Accordingly, it can be said that consumers now have all advantages.
Various kinds of land, feasible prices, multi-options
With such plentiful supply, apartment prices reach its asymptote or gradually turn its true value; clients can select suitable products with sufficient legal bases. Regarding legal matters, real estate traders said only real home buyers pay much attention to this; “surfing” investors do not really stress on this.
Transaction offices in Viet Hung urban area, Long Bien experience gloomy atmosphere. At Duc Huong consultancy office, Viet Hung Ward, only 1 staff is playing games. This staff expresses few customers come here though each apartment price is down to VND2 million. For example, a finished apartment with escalator, kitchen cabinet, water heater with prompt delivery, price fluctuates between VND23-24 million/sqm. In case of weak financial ability, buyer can buy cheaper one without lift. Prices of unfinished CT9, CT10 apartments are at about VND23-24 million/sqm; home delivery will be at the end of the year.
Obviously, gold prices make great movement but real estate market seems to receive no influence. Many predicted this market may gain profit if they use gold to invest in and traditionally, the property market will recover at the end of the year.