CBRE’s statistics show that, in the first 6 months of 2022, the real estate market has had a certain recovery after 2 years of slow development because of the Covid-19 epidemic. In particular, the market witnessed the rapid rise of high-end and mid-end apartments, while affordable apartments almost disappeared. Along with that change, real estate prices continuously set new peaks.
In the apartment market, in the first 6 months of 2022, new supply gradually recovered with the leading segment of the high-end segment. After peaking, in 2020 until now, the supply of apartments on the market has decreased due to many epidemics and legal factors.
In the first half of 2022, supply remains low. CBRE estimates that the Hanoi market will launch about 8,000 units. City market. Ho Chi Minh City had a better recovery with about 16,000 apartments, surpassing the supply for the whole year of 2021.
Forecasting the apartment market, CBRE said that after 3 years of scarcity, the supply of products in both Hanoi and Ho Chi Minh City is expected to increase. Ho Chi Minh City will be very abundant. From now to 2025, developers will launch new projects they have offered to the market. Prices will continue to rise but not too high. For example, the average price of apartments in Ho Chi Minh City. Currently, Ho Chi Minh City is 58 million VND/m2, but by 2024 only about 62 million VND/m2, equivalent to a growth rate of 4%. In Hanoi, the increase could be higher, around 8%.
Sharing with the press, economist Tran Nguyen Dan, a lecturer at the University of Economics in Ho Chi Minh City, said that currently, real estate prices are increasing, but initial transactions are not satisfactory. Because in principle, prices only increase when demand increases, maybe in the months near Tet 2023 to assess the demand and purchasing power of customers. This shows that the real estate market is still in the stage of restarting the “golden age”. Therefore, State management agencies need to have stronger solutions to help the real estate market be more transparent, so that supply-demand is uniform; At the same time, it is necessary to have a radical solution to prevent the virtual increase in real estate prices in the near future.
On that basis, the market will also strongly purify real estate projects, only reputable investors with strong financial potential can attract investors.
Mr. David Jackson, General Director of Colliers Vietnam, said that the real estate market in recent years has been like a “compressed spring”. When the policy difficulties are removed, the market will have a strong bounce. However, the legal problems of real estate projects can hardly be solved in a short time. Therefore, it is necessary for the efforts of the authorities to solve the problems of the current real estate market, ensuring enough for investors and investors to have more confidence in the growth. strength of the real estate market in the near future.
Assessing the overview of the real estate market in the last months of 2022, Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association. According to Ho Chi Minh City (HoREA), primary supply has many signs of increasing in the next 6 months but will focus more on the high-end segment, while the mid-end and affordable segments continue to be in short supply. Therefore, the selling price in the primary market is likely to continue to be pushed up. The market will focus more on the segment of apartments that have been handed over and have ownership certificates.
Also according to Mr. Chau, in the context of the real estate market in Ho Chi Minh City. Ho Chi Minh City in particular and the southern provinces in general by the end of 2022 are likely to absorb well compared to the present. Currently, many inadequacies in the legal regulations on land and real estate are gradually being removed through the amendment of some upcoming draft laws, and price inflation is also being well controlled by the State. Therefore, the apartment segment in particular will have a basis for a quick recovery, and the possibility of a higher increase compared to the first 6 months of the year is very positive.
Source: Vietnam Insider