Scenario for the real estate market at the end of the year

Scenario for the real estate market at the end of the year

The outbreak of the Covid-19 pandemic has seriously affected the real estate market in general, in which all real estate transactions have almost stopped, real estate businesses mainly focus on building business plans. , reassess the market, finance and investment portfolio... to come back soon after social distancing.
There are still many bright spots
According to economic experts, the raging Covid-19 epidemic has affected Vietnam's GDP growth, and the real estate industry is no exception. Therefore, the macroeconomic stability and economic growth in general and the real estate investment and business sector in particular in the last months of 2021 will depend heavily on the successful control of the epidemic. Recently, some real estate businesses have switched to selling through online channels and still have customers to buy products.
The land plot segment in Dong Nai had a fairly high volume of transactions in the second quarter of 2021. In the photo, a row of Shophouses of the Century City project are under construction in Binh Son commune, Long Thanh

According to real estate, in the second quarter of 2021, the real estate market still has many positive bright spots. The level of interest in housing search increased by about 8% compared to the first quarter of 2021 and increased by 13% over the same period in 2020. However, the search volume and product supply are no longer concentrated in Ho Chi Minh City but redirected. to the southwestern provinces with a 35% increase in real estate searches compared to the first quarter of 2021, in which residential land is the most sought after - an increase of more than 12%, concentrated in Long An, Can Tho, Hau Giang. and Bac Lieu. The number of real estate searches in the Southeast provinces increased by 30% in many places, mainly Binh Duong, Dong Nai and Ba Ria - Vung Tau.
According to DKRA Vietnam, the land plot segment in the Western and Southeast provinces increased by about 125%, the consumption rate increased by about 59% compared to the first quarter of 2021. In which, Long An had 819 plots put on the market, sold 501 plots; Dong Nai put on the market 1,319 plots, sold 774; Binh Duong sold 396/523 plots; Ba Ria - Vung Tau sold 155/180 units. The number of land plots consumed in Ho Chi Minh City is at a disadvantage compared to other provinces, only 183 houses have been successfully traded, due to the influence of the Covid-19 epidemic and the high price level.
According to DKRA Vietnam, in Lam Dong province, over the past year, the market has continuously grown, but the number of real estate transactions has slowed down due to the impact of the epidemic and drastic control policies on related laws. to the land of the authorities. Real estate transactions in this locality are almost "paralyzed", investors are in a state of "hibernation", people's demand for real estate search for residential land is no longer interested. In the second quarter of 2021, Lam Dong has only 2 newly licensed commercial housing projects and no new license application dossiers for tourism, resort, commercial housing, and social housing projects. and workers' houses.
Change business strategy
According to Mr. Le Hoang Chau - Chairman of Ho Chi Minh City Real Estate Association (HoREA), the country's condotel market, which was inherently difficult, is now even more difficult, projects opened for sale before the Covid-19 epidemic broke out. also restrict transactions, 15/27 projects in the second quarter of 2021 have no transactions, inventory is about 3,251 units. Tourism and resort real estate has experienced a difficult period since 2019 because of reasons such as: weak legal products, tourism business has been stopped because of the pandemic, which has led to tourism and resort real estate. really face the "crisis".

"In contrast to the land plots and townhouses, the apartment segment has declined in terms of both supply and consumption in the market. Over the past time, in order to maintain transactions for the apartment segment, investors have had The apartment project has launched many attractive sales strategies such as: extending the payment schedule, allowing buyers to borrow up to 100% of the value of the house and exempting the loan interest rate for 20 months," added Mr. Chau.
Economist Nguyen Trong Hoang said: The prosperity and decline of the real estate market in the last months of 2021 depends on the results of the Covid-19 vaccination campaign. The movement of the real estate market in the second quarter of 2021 shows that the psychology of home buyers is becoming more and more stable and gradually adapting to the general situation. Real estate businesses are also more active in finding new directions, especially by introducing and selling real estate products online. In the last 6 months, it is forecast that the supply of apartments in Ho Chi Minh City may increase slightly, because some projects with full legal documents and infrastructure when completed will attract customers.
According to Mr. Nguyen Van Dinh - General Secretary of the Vietnam Real Estate Brokers Association, normally, when the demand for a product decreases, the selling price must decrease, but for real estate, the demand decreases, the transaction decreases but sometimes the resale price get a raise. After the epidemic happened, the real estate market became more difficult, and real estate prices increased sharply. The reason for the price increase is partly due to a large amount of money from other fields pouring in, making the supply of real estate become scarce. However, a part of speculators must be prevented from participating in market development without complying with regulations.

Source: TN&MT