A return of buyer confidence and increased lending support from financial institutions saw a stable Q3 in the real estate market in Ho Chi Minh City, Vietnam.
According to the latest Savills Property Report Index, the Q3/2014 residential index stood at 89.5, showing stability quarter-on-quarter (q-o-q) and up 0.7 year-on-year (y-o-y).
The overall absorption rate was 19 percent, a strong increase of 2 percentage points q-o-q and 7 percentage points y-o-y.
According to the real estate firm in Q3/2014 approximately 3,280 units were sold, up 29 percent q-o-q and a massive 85 percent y-o-y, the highest transaction volume for more than four years.
The residential index has been stable in recent quarters and increased slightly compared with Q3/2013.
Strong financial support from banks and developers helped increase buyer confidence. In addition, a wide range of suitable products has been developed to meet the demand of multiple targeted buyers, contributing to higher market liquidity and price improvement.
Savills noted that the q-o-q index is expected to stabilise in the coming quarters.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
