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The asking price of primary real estate has not shown any sign of decreasing – VnExpress


The costs of land, construction, loan interest … make it very difficult to reduce primary real estate prices, according to experts.

Anh Quang, owner of a real estate business in Hai Ba Trung district, Hanoi, said that in the past few months, the real estate business has been quite slow. Due to limited mobility, investors cannot directly visit and survey the project.

“Customers are more cautious and cautious, especially when concerns about the epidemic situation are increasing,” Quang said.

Anh Minh, a brokerage operating in the South and East areas of Ho Chi Minh City, also said that the liquidity situation of real estate in these two areas is less active and transactions are limited. Agencies and notary offices are closed, so they cannot sign contracts.

Since the 4th wave of Covid-19 broke out until now, the real estate market in many localities has shown signs of slowing down in liquidity. According to data from the real estate information channel Vhome, from April 27 to now, the number of people interested in real estate nationwide has decreased by 48.8% compared to the previous months. In which, people’s interest in real estate in big cities like Hanoi decreased by 41.9%, Ho Chi Minh City decreased by 54.4%.

Real estate in the South of Ho Chi Minh City, February 2021. Photo: Quynh Tran

Although the level of interest in real estate has been lower than in previous months, the asking price in the primary market has not shown any sign of decreasing.

In the Hanoi market, CBRE’s report shows that the primary selling price in the second quarter averaged at $1,472 per square meter, up 7% YoY and 1% QoQ. On the secondary market, the average selling price was at $1,180 per square meter, up 4% year-on-year. Newly completed mid-end projects with convenient locations such as in Hai Ba Trung or Bac Tu Liem districts recorded the highest price increases within a year. Some projects record 8-9% growth every five years. This unit assesses that the primary selling price in the next two years is expected to increase in the range of 4-6%, higher than the increase of 3% in 2020 thanks to the gradually improving infrastructure system and new supply. too abundant as compared to the period before the Covid-19 epidemic.

According to this unit, in Ho Chi Minh City, the average selling price on the primary market increased in all segments, reaching $2,260 per m2, up 16.5% over the same period last year. The luxury and mid-end segments recorded a high price increase of 9.2% and 8.3%, respectively, over the same period last year. The average price level increased significantly due to the lack of supply in the mid-end segment and the luxury segment receiving the branded residence product line. The high-end and low-end segments saw a slight increase in price in the survey quarter, 0.4% and 1.6% respectively over the same period last year.

As of the end of August, the market report of DKRA Vietnam said that the primary selling price of most projects in the southern market did not change much compared to the previous sales.

Vo Thi Khanh Trang, deputy director of the Savills Research Department in Ho Chi Minh City, said that the amount of money in the population continues to increase, which can be seen clearly from the number of newly opened securities accounts. , as well as the increasing demand for residential real estate ownership. However, the lack of supply is pushing up apartment prices.

In a talkshow on VnExpressTran Khanh Quang, Chairman of SREC Cafe Real Estate also said that from the beginning of 2021, the real estate market changed to a new form, with high price increases in all types of real estate. This wave of price increases also spread to many provinces.

“The cash flow into real estate is still large. In June, July, and August, the cash inflow was not as strong as in previous months, but in the primary market, the real estate price did not decrease. Somewhere in the secondary market, there was a phenomenon. down 2-3% but there is no sell-off. I think that 80% of professional investors have prepared plans in the next 3-4 months”, Mr. Quang said.

According to Dr. Tran Minh Hoang, Deputy General Secretary of the Vietnam Real Estate Brokers Association, the phenomenon of real estate prices still keeps increasing despite the epidemic context not only in Vietnam but also common in Europe. The US, South Korea, Singapore… One of the reasons is that during this period all countries launched large stimulus packages, including fiscal policies, low interest rates… to boost the market. .

Savills also said that in the first half of this year, global housing recorded a positive recovery with an average price growth of 3.9% – the fastest growth since December 2016.

Besides the above reasons, Mr. Nguyen Quoc Hiep – Chairman of GP Invest’s Board of Directors said that real estate prices are also influenced by costs of land, construction, finance (loan interest), and business management. and expected profit. Accordingly, land price and construction price account for about 70%, which are two expenses that businesses cannot take initiative in, so it is very difficult to reduce real estate selling prices.

Hoai Phong



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