HCM City’s property market is looking glum

Le Bao Chau, deputy chairman of the HCM City Real Estate Business Association, said since mid-February property prices have shed 10 per cent, and are expected to drop further.

Banks tightening property loans and a diving stock market have been cited as the two main drivers of the dip in the real-estate sector.

Chau said, small-time speculators will suffer the most from the price decreases. They are generally short-term investors, that snapped up property when the sector was doing well, and are now selling out to repay debts.