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Property inventories: HoREA’s estimated firgures 9 times higher than MoC’s
11/06/2019 17:47
According to Ho Chi Minh City Real Estate Association (HoREA), compared to current statistics, real estate inventory on Vietnam’s market may be much higher. Developers must try harder to find solutions for the unsold products.

Data of the Ministry of Construction (MoC) showed, as of the end of 2018, the total value of real estate inventories was only about VND22.825 trillion, down VND105.723 trillion, or 82.24% compared to the peak in Q1-2013. 

However, Mr. Le Hoang Chau, Chairman of HoREA, showed his distrust about the accuracy of MoC’s figures. He said this figure has not yet fully assessed the inventory issue, especially for enterprises with large inventory.

Real estate inventories
HoREA said the actual amount of real estate inventories is much higher than official statistics

“The data that showed the decline in inventory may make people think inventory of real estate is still very low, so there’s no need to worry about it. However, in fact, the actual amount of inventory is very large, so it’s necessary to pay special attention to it, ensuring the stable and healthy liquidity and development of enterprises and the real estate market," said Mr. Chau.

According to HoREA, the previous inventory surveys have not generalized the market. Specifically, at the end of 2012, HCMC’s Department of Construction and HoREA surveyed 45 real estate projects out of 1,207 ones in the city, but only got statistics of 36 ones.

Therefore, the data of HCMC authorities and MoC did not fully reflect the real estate inventory at the survey in 2012. In addition, the above inventory data is only collected by MoC at the beginning of 2013. The numbers of new inventories from 2014 to the later years have not been updated.

Statistics in 2018 from 65 real estate enterprises listed on the stock market showed the total value of inventories reached VND 201.921 trillion.

HoREA recommended that enterprises should have solutions to restructure their products; turn into the affordable segment; consider price reductions, even accept loss-cutting solutions to handle inventories.

(Source: Tuoi tre Online)