ANALYSIS OF THE REAL ESTATE MARKET IN THE YEARS
Real estate is an extremely potential market, but through each period, each cycle, the real estate situation will have different changes. Today, let’s Real Estate 603 analyze the real estate market situation over the years to predict what the future of real estate will be like.
The situation of the real estate market over the years from past to present:
- Situation of the real estate market in its infancy (1993):
In the early period of economic recovery, the land area is large and the urbanization rate is quite slow, so the requirement to own land of many households and individuals in the whole country is still high.
During this period, there were almost no real estate transactions. Real estate transactions at the beginning were mainly small and informal transactions.
- Real estate market situation in 1994 – 1995:
In 1994, the first land fever occurred in the midst of the 1993 land law, which made it easier for people to transfer land use rights.
This can be considered as the golden age of the market economy with GDP up to 8.1% in 1993, 8.8% in 1994 and 9.5% in 1995. High GDP growth makes us believe in the bright prospects of the market economy and pushes up real estate prices.
- The first real estate recession ( 1995 – 1999 ):
The State issued two documents, Decisions 18 and 87 on real estate, to prevent the situation of falsifying prices and manipulating the currency market.
According to regulations, the owner of the real estate will pay the debt twice (the fee for converting the land use right to sublease the State).
The above two regulations oblige investors who use financial leverage to regulate the real estate market to sell their holding real estate to get bank loans. The wave of rushing sales has caused the real estate market to be in a state of oversupply and then turn to decrease.
Besides, the Asian economic crisis originating from Thailand has caused many foreign real estate investors to flock to Vietnam to fail and indirectly help the real estate market to decline.
- The situation of the real estate market in 2000, the fever returned:
Since 2000, the real estate market has continuously increased to its peak in the second quarter of 2001. Real estate of Vietnam at that time was among the most expensive, much higher than that of developing countries.
Enterprise Law 2000, Law on State Property 2001 promulgated. Investors believe that allowing Viet Kieu to buy houses and announce new land prices will be beneficial for the real estate sector, so some people have bought land right in Vietnam. Promote the real estate market at that time to the peak.
Part 2: https://603virtualstaging.com/?p=458&preview=true
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