In recent years, the real estate market has faced many difficulties due to the prolonged impact of the Covid-19 epidemic. However, according to survey data from market research units, housing prices continue to increase despite the epidemic. Savills Vietnam's report on the Vietnam market in the fourth quarter of 2021 shows that house prices have peaked throughout the past time without stopping.

Accordingly, in the fourth quarter of 2021, the supply of new apartments increased by 42% compared to the third quarter of 2021, equivalent to about 4,500 units but decreased by 19% compared to the same period last year.

In which, the next phase of 6 projects provides 3,600 units, equivalent to 80% of new supply; The remaining 20% ​​comes from 4 new projects. For the whole year of 2021, the primary supply dropped to the lowest level in the past 5 years with more than 33,600 units, down 21% year-on-year. New supply and low inventories.

The number of sold units reached 4,200, up 72% quarter-on-quarter. Absorption rate reached 19%, up 7 percentage points QoQ and prices continued to increase for the 12th consecutive quarter.

Ms. Do Thi Thu Hang - Senior Director of Savills Hanoi Research and Consulting Department said that this year, house prices will still increase but not suddenly, mainly towards real buyers. The price increase will also be very cautious. Prices will be at a reasonable threshold, villas will increase by 6-7%, while townhouses and shophouses will have a higher increase. Notably, when the land fund is increasingly scarce, the market in 2022 will witness an expansion into the suburban areas, and basically completed projects will continue to attract the attention of buyers.

Sharing the same opinion, Ms. Duong Thuy Dung - Senior Director of CBRE said that, despite going through 2 years of complicated epidemics, dragging down the economy, real estate prices in many segments continued to increase in the market. Typically, in Ho Chi Minh City, the average selling rate of newly launched projects in the first quarter of 2020 is only 73%, by the fourth quarter of 2021, this rate will reach 82%. Prices are expected to continue to increase due to rising land costs, escalating construction costs, many new products in the higher segment, stable demand and limited supply.

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According to Ms. Dung, the upward trend in prices will continue for the apartment market in Hanoi and Ho Chi Minh City. Specifically, apartment prices will increase by about 3-7% depending on each segment in 2022. Particularly for the high-end and luxury segments, the price level may increase by 5-7%. As for the affordable and mid-end segments, the price may increase by 3-5%. “The uptrend is expected to continue for the apartment market in Hanoi and Ho Chi Minh City. The supply-demand mismatch in the next two years will continue," Dung forecast.

According to the Ho Chi Minh City Real Estate Association, although the housing demand is still very large, the real estate market in 2022 will still face difficulties in supply, due to the legal "bottleneck" in the Law on Investment and the Law on Housing. In addition, the Law on Real Estate Business has not been removed. The lack of housing supply from new projects to the market is one of the reasons why secondary investors and brokers take advantage of selling prices, causing land "fevers" or the investors themselves. push up house prices. Once this bottleneck is removed, it will create a healthier development, especially the development of affordable housing projects.

Mr. Nguyen Van Dinh - Chairman of the Vietnam Real Estate Brokers Association said that the residential real estate market is still under upward pressure because of low supply and rising land prices. The supply of land plots in the real estate market is largely not in approved projects, but mainly in local auction projects and spontaneous projects of small investors. Meanwhile, the land price won at auction in most localities is very high. In addition, inflation may increase higher, banks are expected to continue to tighten real estate credit, other industries are still risky... Those are the reasons that push up housing prices.

Many economic experts predict that in 2022, the real estate market price will continue to increase. In particular, the area of ​​​​Thu Duc City (HCMC) currently has high housing prices but will continue to increase. The real estate market will change well because the epidemic has been controlled, the economy has recovered, and people's money is still available, so many people still choose to invest in real estate. In addition, Ho Chi Minh City will promote many public investment packages, build more infrastructure, positively impact the real estate market.

 

 

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