Vietnam’s property inventory remains high, and other headlines

For PropertyGuru’s real estate news roundup, more than 17,100 apartments and land plots of real estate projects across Vietnam remain on the market in the second quarter of this year. In other stories, Hong Kong’s finance chief urged big banks to help small businesses with their cash flow. And Dubai’s property market has witnessed substantial growth and resilience in recent months.

Vietnam’s real estate inventories remain high: MoC

More than 17,100 apartments and land plots of real estate projects across the country remain on the market in the second quarter of this year, with land plots and houses doubling that of apartments, the Ministry of Construction (MoC) reported on 14th August.

Despite a decrease in inventory compared to the first quarter when 19,323 land plots and houses are on the market, the inventory of these segments remains high, a heavy burden on real estate businesses.

Dr. Nguyen Van Dinh, Vice Chairman of the Vietnam National Real Estate Association, said in VietnamPlus that the completed products, such as apartments, villas, and offices, saw few transactions due to high prices. He explained that there are also cases where sale conditions were not met, or poor project locations slowed sales. High inventories, low liquidity, and the heavy bank interest rates burden make it harder for real estate businesses.

Dinh advised businesses to consider adjusting the development of projects with a careful exploration of real needs, focusing on products with average and affordable prices.

Hong Kong finance chief urges banks to boost help for small businesses as 74 percent expect cash flow to be a key challenge

Hong Kong’s finance chief Paul Chan has urged big banks to do more to help small businesses, as a survey found that 74 percent of small and medium-sized enterprises (SMEs) see cash flow as the biggest challenge in the year ahead, according to HKFP.

Chan said he and Hong Kong Monetary Authority chiefs met representatives of major banks and discussed the liquidity challenges which SMEs faced. “Participants agreed that small and medium-sized enterprises are an important component of the Hong Kong economy,” Chan wrote in a Facebook post in Chinese after Wednesday’s meeting.

Dubai property market thrives with 11.5 percent rise in residential sales: Report

Dubai’s property market has witnessed substantial growth and resilience in recent months. Economy Middle East reports that during the second quarter of 2024, Dubai saw an 11.5 percent increase in residential sales transactions and a 2.7 percent rise in residential rental values.

The latest ‘Real Estate Research Second Quarter 2024’ report by ValuStrat states that despite the record rainfall in April, Dubai’s effective response helped control the damage, ensuring that market activity and property valuations remained robust in the subsequent months. Therefore, the ValuStrat Price Index for Residential Capital Values increased by 6.4 percent quarterly and 28.2 percent annually, reaching 178.2 points.

The Property Report editors wrote this article. For more information, email: [email protected].