In Saigon these days, where ever you go you will see another new building popping up somewhere. In fact, the construction may be getting out of control. Vietnamese call this progress but I worry that a Thailand-like real estate crash may be on it’s way to Vietnam. The media here seem positive about the economy in 2010 but the reality is quite different. That is all I will say about it…
A bit reminiscent of the news out of Dubai mixed with the news from China. THere are way too many completed, empty office buildings littering the skyline. I can’t imagine a better time to be looking for top-end office space in HCMC. Even the most prestigious downtown buildings downtown have vacancies now. A few years ago there was a supposed shortage, now there is a glut, with many more on the way, nearing completion.
Meanwhile Vietnam is having trouble pricing their bonds where they are salable. The market is seeing more risk here than the government is willing to admit, therefore only about a third of those proffered are being purchased. This is potentially a problem and the exchange rates reflect this issue.
The question is who has the money to pay the enormous rent in areas such as District 1 anymore. Notice how nobody mentions the word ‘glut’ in the English papers anymore. There is an anticipation that somebody will rent the places. You would expect prices to drop on all rents but they seemed to have gone out. What happened to supply and demand here?
One just wonders who is buying these buildings? I wish they would stop pick pocketing all the foreign loans and start build something which would benefit the country instead.
It is better not to ask the question but we know who…
Couldn’t agree more. Far too much construction going on. Good news for those of us almost ready to rent in more expensive areas but not prepared to pay the current asking price. I’m looking forward to living in a luxury condo close to central HCMC for the same price I’m paying in Binh Chanh right now.
I am moving in the next couple of months but prefer to stay put if I can. If I do make it to Japan then my current place is perfect. If not, then I want to find a quieter place.