On the morning of July 5, 2022 at Sheraton Hotel, Batdongsan.com.vn held an event to report on the real estate market in the second quarter of 2022. Accordingly, many detailed information about demand fluctuations and real estate prices across the country in general and Ho Chi Minh City in particular have been presented specifically by experts.
Sharing the general economic situation of the country in the first 6 months of the year, Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn said that the economy is having a positive and clear recovery. Data from the General Statistics Office shows that in the second quarter of 2022, the average GDP reached 7.72%, up 1.02% over the same period; The consumption index (CPI) reached 2.96%, the disbursement of FDI capital is now about 10.06 billion USD, up 8.8% and exports reached 186 billion USD, up 17.3% over the same period. 2021. In addition, the Government has adopted policies to support the post-pandemic economy, such as reducing the value-added tax rate by 2% for many groups of goods and services; increase development investment spending from the state budget to upgrade infrastructure and support interest rates for industries, support rent for workers in special zones / export processing zones / industrial zones, reduce interest rates get a loan…
The real estate market also showed positive signs of recovery when the level of interest in real estate across the country in the second quarter of 2022 was approaching the threshold before the outbreak. Trading activities recovered, many new projects were launched, creating heat for last quarter’s transactions. However, the move to control capital mobilization into real estate, loan limits and conditions for real estate businesses when issuing bonds, tighten tax collection and conduct real estate transactions, tighten lot division, split plots, grant rights land use… has had a great impact on market performance. The most obvious impact is that the supply of real estate deployed in the first 6 months of the year is quite low. Figures from the Ministry of Construction show that, in the first quarter of 2022, the number of completed commercial houses was only about 5,217 units, down 46%, apartment transactions decreased by 20% over the same period in 2021.
Besides apartments, the resort real estate market and land plots are also greatly affected when the recovery trend of resort real estate still has many barriers, the land purchase and sale activities cooled down immediately after the bank controlled credit and Many local governments tighten subdivision and sale of plots.
As for the specific operation situation of the southern real estate market in the last quarter of the second quarter, Mr. Dinh Minh Tuan, director of Batdongsan.com.vn in the southern region, said that the largest market in the region, Ho Chi Minh City, is recording receive opposite movements in buying demand and selling price. While the demand for real estate has shown signs of decline, the selling price of all types of real estate in Ho Chi Minh City is still clearly increasing.
Specifically, in the second quarter of 2022, Ho Chi Minh City welcomed nearly 14,000 apartments for sale, of which more than 80% of the supply came from a large project in the city. Thu Duc. However, the demand for finding real estate to live in in Ho Chi Minh City in the last quarter tended to go down with a decrease of 5% over the same period. In which, interest in apartments decreased by 3%, townhouses decreased by 9% and land plots/townhouses decreased by 16%. Despite the downward momentum from search demand, the selling prices of all three types above still increased strongly in the last quarter. The selling price of apartments continued to increase by 4-7% over the same period, the strongest increase was in the type of luxury apartments priced at over 55 million VND/m2. Private houses and townhouses had a 3-8% increase in selling prices compared to the previous quarter, especially in the old district 2, the price of private houses increased by nearly 17%. Land plots in districts of Cu Chi, District 7, District 12, the selling price increased by 6-18%, especially in Nha Be district and the old district 9, although the search demand decreased sharply by 29-30%, the selling price still increased 4- 4. 11% over the same period in 2021.
Sharing about the reason why real estate prices in Ho Chi Minh City still maintained an uptrend in the last quarter, Mr. Dinh Minh Tuan said, the factor that makes HCMC real estate prices still increase strongly comes from the difference in supply – demand. The demand for real estate search in the second quarter tended to decrease compared to the same period, but compared to 2019 it was still higher. In terms of supply, legal barriers and construction permits made the number of apartment projects deployed in the first 6 months of the year very low, leading to actual demand that did not match the buying demand of the market. The lack of supply and demand has had a strong impact on real estate prices in Ho Chi Minh City over the past time.
In addition, project development costs escalated due to the rising price of construction materials along with prolonged development costs, forcing many investors to recalculate the opening price. This invisibly caused the market to lack of cheap, affordable products and mainly high-end housing. However, in the last quarter, most of the projects that have a source of goods for sale have recorded a consumption rate of 80-100% of the supply, showing that the market’s demand is very large. With this type of land, according to Mr. Dinh Minh Tuan, this is a product line to serve investment needs, so the tightening of credit in real estate and stopping subdivision and sale of plots in many localities has strongly hit speculators, investment caused the transaction of land and agricultural land to decrease sharply.
Forecasting the real estate market in the last 6 months of the year, Mr. Tuan said, the residential real estate market will still face many challenges when the supply has not improved much and real estate prices will remain in an upward trend. However, with the rental market, positive signals are returning back with clear highlights from the type of townhouses and apartments for rent.