Real estate market data for the first 4 months of 2022 of batdongsan.com.vn (Vietnam's leading real estate service information channel) shows that apartment prices are flat and difficult to fall deeply while the demand for housing sword reduction; the liquidity of land plots has not improved much. However, the market is witnessing more "bright spots" compared to the first quarter of 2023.
Right time to invest
According to data from Batdongsan.com.vn, in the first 4 months of 2023, apartment prices in Hanoi and Ho Chi Minh City were almost flat in all segments. Compared to the same period last year, the selling price of Hanoi apartments increased slightly by 2-4% in the affordable and mid-end segments, down 1% for the high-end segment. In Ho Chi Minh City, affordable apartments did not have any change in selling prices, mid-end apartments increased by 2%, while high-end apartments increased by 6%.
Thus, apartment prices in big cities have spent many months in moderation, no longer rising as hot as before, but not decreasing either. The report of the first quarter of 2023 of batdongsan.com.vn showed that 43% of people with real demand for housing are still waiting for real estate prices to drop.
Positive signs of the real estate market.
However, Mr. Nguyen Quoc Anh, Deputy General Director of batdongsan.com.vn, said that apartment prices in the near future will be difficult to fall deeply because types of real housing services are still "bright spots" of the market. real estate school. In a recent survey by batdongsan.com.vn, 49% of realtors rated apartments for sale/rental as the most potential type of real estate in 2023. Currently, Hanoi's urbanization rate is about 49% and Ho Chi Minh City about 70%, our whole country has 8 provinces and cities with an urbanization rate of over 50%. Thus, there is still room for development and the demand for urban housing is always present.
In the current context, many people wonder if this is the right time to buy a house. Mr. Nguyen Quoc Anh made a recommendation that buyers should carefully consider the financial problem, considering their own capital, ability to borrow capital and ability to repay debt: "For those who buy to live, buy a house. at this time will immediately meet the need and settling down can help homeowners get better cash flow. As for investors, it is better to calculate more carefully, because investment costs are related to capital recovery, it is necessary to master detailed information about the possibility of rent fluctuations, selling prices, rental yields. ".
According to batdongsan.com.vn, apartment rental yields in Hanoi and Ho Chi Minh City in the first quarter of 2023 were 4.9% and 4.4%, respectively, excluding profits if house prices increase. . This interest rate is already high
than in 2021 and 2022, but still below pre-COVID-19 levels. Specifically, in 2019, the apartment rental yield in Hanoi and Ho Chi Minh City is about 6%/year.
“Real demand for real estate is still there and good policies to support the market have created a relative push, so the most difficult time of the real estate market has passed. In the first week of May 2023, the supply and interest in real estate have shown better signs," the leader of batdongsan.com.vn confirmed.
Land market price drops
On March 22, 2022, the Hanoi Department of Natural Resources and Environment issued Document No. 1685/STNMT-DKTĐD requesting the People's Committees of districts, towns and cities to suspend the receipt and handling of administrative procedures related to administrative procedures. the division of land plots for agricultural land parcels; land parcels with residential land and agricultural land in the same land parcel; non-agricultural land is not residential land.
This decision has partly affected land plot transactions in Hanoi. However, on April 26, the Hanoi Department of Natural Resources and Environment issued Document No. 2869 on the annulment of Document 1685. Accordingly, this agency proposed the People's Committees of districts, towns, Relevant agencies and units shall consider and handle administrative procedures related to the adjustment of land parcel separation and consolidation for land users according to regulations.
In addition, the transaction of land plots has been quiet since 2022 due to many reasons such as capital sources, interest rates, supply... Data from batdongsan.com.vn shows that land plots in areas such as : Hoai Duc, Ba Vi, Thanh Tri, Soc Son, Dong Anh, Gia Lam in the first quarter of 2023 all had their selling prices reduced by 1 - 13% compared to the fourth quarter of 2022, the level of interest also decreased by 4 - 13%. 24% depending on the region. In which, the price of land plots decreased the most in Thanh Tri district (down 13%) and the level of interest decreased the most in Gia Lam district (down 24%).
According to real estate experts, the permission to split the plot again is a "bright spot" for the Hanoi land market. However, in order for the land market to develop more sustainably, great support is needed such as promoting the relocation of administrative centers, industrial parks, projects and universities to the outskirts of Hanoi; invest more aggressively in satellite urban areas to the west such as Hoa Lac, Xuan Mai and north of the Red River such as Me Linh, Soc Son, and Dong Anh...
Along with that, the market needs loan packages to buy real estate with more suitable interest rates, below 10%, instead of the average of 11-13% and gives priority to lending to real estate that is put into production and business, creating cash flow and more stable than speculative real estate.
According to Mr. Nguyen Quoc Anh, land fever will not occur this year and the market is showing some more positive signals than in the first quarter of 2023. In the long term, land plots are still a potential investment type if investors know how to choose products with value in use as well as the ability to exploit to create stable cash flow.
In addition, the market still has bright spots in localities with strong infrastructure development, rapid urbanization and potential for infrastructure development, industrial parks, administrative centers or new urban areas. For example, land plots in big cities, areas with adequate facilities and infrastructure connections,
near industrial zones, the price level will be stable and have room to increase in the medium term. Therefore, in this period, land buyers have many choices and need to calculate the long-term direction with land plots, instead of speculative surfing.
According to Son Van/Newspapers
