For the first quarter of 2009, Real Estate pricing of Ho Chi Minh City has risen 30% - 40% comparing to the end of 2008, with some exception of 100% risen.

This has been a common trend according to the investor, reacting to the warm-up of real estate market and the rising of VN-Index (expected to reach 560 point in June 2009). August 2009 expected to become another peak for the investor to move their capital in order to protect their investment.

There will be another heat-wave

From the begining of 2009, land cost is rising thorough Ho Chi Minh City, especially land cost in South SaiGon is fluctuated daily. Only from mid May, land cost in South Saigon has risen 20-30% averagely. Even un-popular projects are enjoying several million per square meter rise.
Mr. Doan Nguyen Duc, chairman of Hoang Anh Gia Lai Group, expects that real estate market will recover soon, being resonated with the recovering real estate market. Even being optimistic, Mr Duc doesnt think that real estate market will ever return to the boiling point of 2007, with investors having so many pricey lesson from the recession in 2008. Real estate consultant compaies also predict a rising trend of land in South Saigon, followed by District 2 & District 9.

Real Estate being a shelter

Addressing the rise of land cost, many investor consider the rise of VN-Index and the stimulus package are the causes, as well as the returning confidence of investor and consumer in the recovery economic.

Another reason for this trend is the rise of gold price, scaring investor of inflation and into choosing real estate as a shelter for their investment

Transactions are still in number

Dealing with this rise, the greater demand has also affected investors' behavior. As of May 2009, timing of Nguyen Van Cu bridge being open to traffic, land cost of Trung Son (the closest project) is quoted at 40 mil. VND/m2 for the best location (average pricing 30-35 mil.VND/m2). Pricing now is quoted at 70 mil VND/m2, a nearly double rate. Him Lam - Kenh Te, another adjacent project also see some land lot rise 70% compare to the end of 2008 and 6.4% rise only within a week.

Despite the rise, the common situation is still pending hence everybody are expecting a greater gap.

Opportunitists

Sharing the same point with investor are consultants and developers, Mr.Luong Tri Thin, GM of Dat Xanh Group, also expects a warm-up period in real estate, seeing a great rise in stock market, he predicts that this profit will first go into real estate and then gold, bank and other channels. Mr.Binh Tien Thang, Vice GM of SacomReal and Mr. Vu Anh Quan, MD of VNHouse are also expect that there will be many developments being introduce to the market later this year.

Hoang Lan