Gold Price Hikes Hit Vietnam Property Market
Soaring prices of gold have made adverse impacts on the real estate market with much of Vietnam’s property being traded in gold, analysts said March 9.
The market has cooled down as the price of properties sold by gold increased by 7% last week, fuelled by the rising price of the precious metal, which jumped to nearly VND20 million per tael last week.
Sacomreal, the real estate arm of Sacombank, said when gold was at a stable VND15 million per tael, it was easier to sell property.
Last week, real estate companies said many investors rushed to sell their properties after the banks’ announcement that loans to property buyers would be limited.
Analysts said many investors who were holding on to their real estate, waiting for prices to rise, had been selling to recoup their losses on bank loans.
Property trading centers in District 2, 7 and Nha Be are reporting sluggish trading activity, and centers in Nguyen Van Linh Street, District 7, may even have to close their doors.
Luong Sy Khoa, general director of Phu Gia Real Estate Joint Stock Company, said the situation would continue for several weeks because everyone was waiting for new regulation to stop speculation on progressive property taxes and bank loans.
An owner of an apartment at Van Phat Hung Company’s Phu My building in District 7 said the apartments in the past sold for VND33 million per square meter, but now, at even VND31 million per sq.m, there had been no buyers.
(Vietstock)
Vietnamese
