Hanoi (VNA) – As the State Bank of Vietnam has tightened the control overreal estate loans to ensure sustainable development of the market and safety ofthe banking sector, property transactions have fallen down in both Hanoi and HoChi Minh City in the first six months of the year, experts said at a recentmeeting in Hanoi.

Nearly13,000 housing products were rolled out in the Hanoi market duringJanuary-June, as compared to 8,899 in total number of successful transactions,accounting for 76.05 percent and 68.9 percent of the amount the same time lastyear, respectively.

However, the capital real estate market experienced a good absorption rate of68.6 percent, particularly housing products were sold fast in the secondquarter as the absorption rate reached 84.7 percent.

Ho Chi Minh City had the same trend when it saw a fall in both housing supplyand transactions in the period.

More than 10,700 products were put up for sale, making up only 39.1 percent ofthe amount offered in the first half of last year. Meanwhile, 8,560 units weretransacted, or 46.8 percent of the same time last year.

The country’s largest property market also had a high absorption rate of 79.9 percent.

Other localities with strong realty market development in recent time like DaNang city, Nha Trang city, Quang Ninh province, Binh Duong province and DongNai province also saw a fall in both supply and number of transactions. Thiswas due to the fact that local authorities and credit institutions enhancedsupervision over property projects and lending for them.

According to Nguyen Van Dinh, Chairman of the Vietnam Real Estate BrokerageAssociation, the real estate prices increased slightly in the six-month period;however, the market was still stable, and there was no sign of housing bubble.

Land lots were the most attractive product in the period, sold at stableprices, he said, adding that Hoa Binh, Yen Bai, Binh Dinh, Phu Yen and BinhThuan arouse as emerging markets.

Dinh said that housing supply and transactions in the second half will surgedramatically in the Hanoi market. Housing prices is predicted to fluctuateunder 5 percent, and the absorption rate will remain high as well.

The Ho Chi Minh City property market is promising during July-December as localpolicy is expected to boost both supply and transactions. Houses will be ongood sale, however, at high prices, he added.

Regaring the condotel segment, Dinh said most of the products offered in thefirst half were developed in 2018, and the absorption rate was only 25.02percent.

The segment has not been well developed due to limitation in new projects, alack in favourable policies, and shortage of customers’ confidence.

“Unfavourable policies and unsound management and operation of condodels havemade investors feel unsecured. Most of them have invested in projects developedby prestigious and experienced companies”, he said.-VNA