While real estate investors fell in most types, especially land plots, with profits down by 18% compared to the previous month, the type of real estate with immediate function is being sought by many people.
Batdongsan.com.vn’s April 2022 real estate market report shows that there are many contradictory developments in different segments. Demand for most types of real estate tends to decrease over the same period, such as private houses down 9%, land plots down 8%. However, villas and townhouses recorded high interest with an average increase of 7% nationwide.
Many provinces and cities have a strong increase in searches of this type, notably Quang Nam (167%), Hung Yen (43%), Khanh Hoa (18%), Quang Ninh (14%),… Supply villas and townhouses nationwide also increased by 17% in the past month.
Along with the interest, the selling price of villas and townhouses also increased significantly, especially in the districts of Hanoi and Ho Chi Minh City. The selling price of villas and townhouses in Gia Lam, Hoang Mai and Hoai Duc (Hanoi) increased by 82%, 46% and 39%, respectively. In Tan Binh, District 7, the old District 9 (HCMC) also recorded an increase of 60%, 35% and 25% respectively.
Explaining about the heat of the villa and townhouse type, experts of Batdongsan.com.vn said that before the information about inflation, real estate buyers are prioritizing products with a need to buy and sell. High rental, good liquidity history.
“Villas and adjacent houses are one of the types of real estate that appreciate well and have the highest successful transaction rate in 2021, so they continue to attract a large amount of interest,” said expert Batdongsan.com.vn. know.
In contrast, the land plot segment showed signs of cooling down compared to March. Back in the first quarter of 2022, the land plot market was still quite active with national interest increasing by 4% compared to before the epidemic. COVID-19 (first quarter of 2019). Many localities increased significantly in both search volume and selling price, such as Khanh Hoa, Binh Thuan, and Thanh Hoa.
However, entering April, the level of interest in land plots across the country decreased by 18% compared to the previous month and by 8% over the same period.
According to the real estate market report DKRA Vietnam in Ho Chi Minh City. In Ho Chi Minh City and neighboring provinces, in April 2022, the land plot segment has 10 projects for sale, of which, 5 new projects and 5 projects in the next stage of sale. Absorption rate is over 82%, specifically the supply has 1,602 plots, up 12%, consumption reaches 1,320 units, up 19% over the same period in 2021.
According to DKRA, Long An leads the market, accounting for 63% of total supply and 64% of new consumption in the month, with open-sale projects concentrated in Duc Hoa and Can Giuoc districts. However, with this locality stopping the licensing of plotting activities, the new supply in this market may decrease significantly in the near future.
Most of the following phases, the projects in Ba Ria – Vung Tau, Long An and Dong Nai recorded an adjusted primary price of 3% – 7% compared to the time of sale at the beginning of the year.
City. Ho Chi Minh City continues to be in short supply of new land for sale, mainly individual projects that subdivide, small-scale, concentrated in the suburban districts of the South, adjacent to the border of Long An province.
The information that orients the planning to the district/city of the suburban districts of the city. Ho Chi Minh City (Cu Chi, Hoc Mon, Binh Chanh,…) affects the secondary asking price of projects, recording an increase of 10% – 18% compared to the time before Tet. However, market liquidity was low, with almost very few transactions occurring during the month.
For the townhouse/villa segment, the supply came from 14 projects (5 new projects and 9 projects launched for sale in the next phase), there were 1,728 units, the consumption rate reached 58%, equivalent to 1,001 units, increased by 8% compared to April 2021.
DKRA said that the new supply increased sharply, more than 7 times compared to the previous month and nearly 3 times compared to the first 3 months of 2022. Ho Chi Minh City and Dong Nai continued to lead the supply when accounting for 64% of the total supply of the whole market.
Particularly, Ba Ria – Vung Tau and Tay Ninh did not record new supply for 3 consecutive months. Consumption has prospered with the number of units sold 2.6 times higher than the total consumption in the first 3 months of the year and concentrated mainly on large-scale projects, synchronously planned and developed by investors. reputable investment with strong financial potential. The primary selling price recorded an average increase of 3% – 10% compared to the previous month. However, many preferential policies, discounts and interest rate support continue to be applied by investors to support customers. The secondary selling price did not change much compared to the previous month, the secondary transaction was less active, focusing mainly on the projects that have been handed over, have completed the legal process and have convenient transport infrastructure.
Information about townhouses/villas in Ho Chi Minh City. In Ho Chi Minh City, this unit said, supply and consumption had a positive recovery compared to the previous month, mainly in the East area when accounting for approximately 69% of total supply and 68% of total consumption of the whole market. school. The primary price level increased by 5% – 10% compared to the previous month. However, investors have attached many policies in favor of financial support for customers in order to contribute to stimulating market demand. The supply in the city. The scarcity of Ho Chi Minh City and the increasing price level are the reasons why a large number of customers have turned their attention to the market in neighboring provinces – where the supply is diverse and the selling price is still relatively low. It is expected that in the next month, the supply of townhouses/villas in Ho Chi Minh City. Ho Chi Minh City will continue to increase and concentrate mainly in the East area.
According to expert Batdongsan.com.vn, there have been many unexpected variables in the market recently, such as negative information about violations of large real estate enterprises, and state management agencies tightening regulations. Tax regulations, control of subdivisions for sale of plots, and the State Bank’s requirement to tighten credit sources in real estate, etc. are the reasons why real estate buyers and investors are more cautious.
“In the coming time, real estate products with high purposes of use will serve the real needs of the people and serve as business premises, in line with the state’s orientation to promote business and production. such as private houses, townhouses, apartments for rent, apartments priced below 45 million VND/m2 will receive more attention”, said Mr. Dinh Minh Tuan – Director of Batdongsan.com.vn in the South region.
Troy Griffiths – Deputy Director of Savills Vietnam said that the trend of low-rise and adjacent buildings will develop more in 2022 and spread from Hanoi to Bac Ninh and Hung Yen. In particular, shophouse will continue to be an exciting segment in the following years.
“Townhouses with a moderate area, affordable prices will have very good sales. I believe that shophouses can be an interesting and exciting segment in the low-rise market in the coming years,” predicted Mr. Troy Griffiths. .
Meanwhile, Mr. Matthew Powell – Director of Savills Hanoi expressed his optimism about the supply growth and selling price of this segment: “The primary supply of villas and townhouses in Hanoi has been continuously lacking. The new supply in 2022 will mainly come from large projects and urban areas outside the center of Hanoi, which will help overcome this situation, places with improved infrastructure. If it improves, the supply, transaction volume and selling price will also increase significantly.”
In the city. In Ho Chi Minh City, the plan to transform 5 suburban districts including Hoc Mon, Binh Chanh, Nha Be, Cu Chi and Can Gio into “inner city districts” by 2030 is also one of the factors creating the prospect of this market. .
With a large land bank and increasingly complete infrastructure, districts 2, 9 (Thu Duc City) and Binh Chanh are expected to continue to be the focal point of mainland real estate development. Binh Chanh is expected to have the most future supply, accounting for 27% of the market share, followed by District 2 with 18% and District 9 with 16%.
In addition, the provinces adjacent to the city. Ho Chi Minh City like Dong Nai and Binh Duong also promise good growth in this segment. Both these localities have attracted large investors such as Novaland, Vingroup, Nam Long, CFLD and Capitaland.
“Limited supply in Ho Chi Minh City has been motivating buyers to expand investment in other provinces, especially Dong Nai, with outstanding growth rates in recent years. Supply has increased in other markets. Alternative markets will provide buyers with more options, so 2022 will be an interesting year to watch the expansion into neighboring provinces and the endurance of investors,” said Deputy Director of Savills Vietnam. Nam commented.