Underlying risks in HCM City real estate market

Compared to 2014, there has been a 5-6% increase in real estate prices. A number of projects in the luxury apartment segment saw a 10-15% price increase. A strong surge was seen in the Ho Chi Minh City’s secondary market and luxury apartment segment with the number of investors increasing three-fold. However, behind these outwardly optimistic signs are also risks, primarily posed by people taking high interest loans from unreliable sources to speculate on the market. This has the potential to cause instability in the real estate market.