The real estate market fell into silence, many highly speculative segments such as land plots, townhouses, and villas tend to decrease in price and cut losses. However, in the apartment segment, there is still an opposite trend.
The latest report of a real estate market research unit shows that, in Hanoi, the level of interest in apartment types decreased slightly by 5 – 12%. However, the price level tends to increase, especially the mid-end segment increased the most by 12%, the high-end increased by 7% and the affordable segment increased by 2%. In Ho Chi Minh City, the level of interest tends to increase sharply, while the selling price increases slightly by 2-4%.
Mr. Dinh Minh Tuan, director of Batdongsan.com.vn in the South, said that it is difficult for primary house prices to decrease in the context that all project development costs are increasing. In the period 2012 – 2013, the market was in crisis due to overproduction, high supply and low demand, leading to a drop in house prices of 20-30%.
But with the current market, the biggest problem is the shortage of products for sale, there is no shortage of supply or demand, but on the contrary, the market’s demand is still very large but the supply is scarce. Therefore, even if liquidity is poor, the primary price will still be difficult to reduce.
Besides, the factors that determine the selling price such as the cost of construction materials, labor, land use fees, taxes and fees, etc. are increasing. In the near future, the Land Law will bring the land price close to the market price, the house price will also have to be adjusted accordingly, so it is difficult for investors to reduce the selling price.
“Real estate prices depend on the supply and demand of the market, the reality is that there is a lot of demand but there is a shortage of supply, and real estate prices will be difficult to reduce,” said Mr. Tuan.
According to Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, the price reduction will only be recorded in a number of segments that have increased too virtual and in the type that does not meet real demand.
Segments such as mid-end, affordable apartments and real estate with good commercial exploitation value will still have transactions, so the ability to lower prices is very difficult, especially in the context of scarce supply.
Most of the inventory products of the real estate market today are in the high-end segment, due to poor liquidity because it is not suitable for home buyers’ pockets. Even at the time when the market slowed down, real estate that met real demand and generated commercial profits remained unchanged.
“Positive signals from the 2023 market will also reassure homebuyers’ sentiment and gradually bring back liquidity,” Dinh said.
In fact, the demand in the real estate market is still very large, especially for products with real demand. In the context that legal problems are still very large, many projects are still unable to be implemented, the market is scarce in housing supply. Besides, input costs such as construction materials, labor, equipment, etc. still tend to increase, which is likely to lead to an increase in housing prices, especially in the segment average and intermediate.
Source: CafeF
Source: Vietnam Insider