Real estate projects in district 7 of HCMC, HCMC. Photo by VnExpress / Quynh Tran
More mergers and acquisitions are imminent in the real estate market and house prices are expected to rise this year, industry insiders have said.
David Jackson, CEO of real estate service provider Colliers Vietnam, said that since the Covid-19 pandemic caused losses to the industry, many companies would no longer be able to complete half-completed projects and would be forced to sell to others with deeper pockets. .
Those with solid finances are also likely to opt for mergers and acquisitions as little land is available to go on their own, and they would mostly try to buy unfinished projects and bring them to market quickly, he said. he declares.
Over the next 12 months, Vietnamese companies will continue to play a key role in real estate mergers and acquisitions thanks to their better understanding of the market than foreign companies, he said.
He predicted that most M&A deals would involve projects on the outskirts of major cities or in provinces that have recently emerged as new economic hubs, a trend that has already been observed.
Tran Khanh Quang, CEO of Viet An Hoa Real Estate Investment Joint Stock Company in HCMC, said that in 2022, the real estate market is expected to see prices reach new highs due to the impact of the auction of four lots in the new urban district of Thu Thiem. Area in the town of Thu Duc recently.
They were sold to local bidders on December 10, 2021 for a total of over 37 trillion dong ($ 1.6 billion), four to eight times their reserve prices.
The destruction caused by the fourth wave of Covid on various industries has prompted investors to move their money to houses, land and other types of real estate as a “safe haven,” he said.
Offers of land in Thu Thiem are expected to continue as there is still plenty of land available there and is likely to push up property prices, he said.
Nguyen Loc Hanh, CEO of Asia Gem Real Estate Investment JSC, said prices, especially for housing, in the city and its neighboring provinces are expected to increase in 2022, as land prices, construction costs and interest loans would all increase.
In addition, inflation in the coming years is also expected to cause house prices to rise, he warned.