In 2020, real estate is considered a "favorite dish" of investors, will the market repeat in 2021, is this investment channel still "attractive" enough?
Events: Real estate market, General economy
A recent report of the Vietnam Real Estate Brokers Association has shown that in 2020, the Vietnamese real estate market will face many difficulties, ups and downs. The Covid epidemic has weakened the world economy and Vietnam, including the real estate market. Despite being heavily affected by the above problems, Vietnam's real estate market still has a significant bright spot, which can create waves or explode at any time.
In 2020, despite the influence of the Covid-19 epidemic, the real estate market still witnessed land fevers
The strongest and hottest price increases can be seen in Ho Chi Minh City and the Southeast provinces when Thu Duc City and Long Thanh Airport are forming here. Witnessing the rapid increase in real estate prices in many areas, a representative of the Real Estate Brokers Association explained that due to scarcity of supply, increased demand was the main reason for the sharp increase in real estate prices.
In addition, according to the Real Estate Brokers Association, industrial real estate in 2020 shows the excitement and bustle due to the wave of investment moving from China. On that basis, the market forecast in 2021, the Report of the Vietnam Real Estate Brokers Association said that obstacles in legal regulations will be removed in many parts. Therefore, the country's supply of goods will increase sharply compared to 2020. Specifically, in Hanoi and Ho Chi Minh City. Ho Chi Minh is as follows:
In Hanoi, right in the first quarter and second quarter of 2021, it is expected that there will be thousands of products with a variety of segments to be offered to the market. In which, the North and West of Hanoi will account for the largest proportion. In Ho Chi Minh City, the survey shows that about 20 projects will be offered in the first 6 months of 2021. Supplying to the market about 30,000 products with all kinds of segments, promising a better quality market for business activities. real estate agents and brokers.
In terms of demand in 2021, Vietnam's economy will keep pace and achieve a better growth rate, so the demand for investment and home buying will increase again. It is forecast that the demand of this group will reach 70% in 2019. The economy will grow better, which means that some other economic sectors will recover. Part of the short-term investment group in the real estate market will return to its traditional market.
Demand for the apartment segment in Hanoi and Ho Chi Minh City still accounts for a large proportion, in which the segment of mid-end apartments with 2-bedroom apartments continues to be the most traded.
In particular, social housing is still in great demand, while resettlement housing has a very low demand for many years, so the Association also recommends that the development of this product be abandoned altogether. .
Experts predict that in 2021 due to the abundant supply, land prices will slow down
With land plots, this segment is still considered the product that investors are most interested in in localities outside of Hanoi and Ho Chi Minh City. However, this product will gradually become scarce because localities also limit the development of land projects, mainly in auction projects.
Regarding real estate prices, the report also pointed out that apartment prices in Hanoi may remain the same or increase slightly compared to 2020. In Ho Chi Minh City, Ho Chi Minh City in the first 6 months of 2021 still tends to increase. Mainly the city area. Thu Duc.
“At the end of the year, the supply may increase sharply, F0 investors will withdraw from the market a lot, and speculators will sell out strongly. At this time, the price may slow down, even be under downward pressure, but in 2021, there will be no price reduction. However, new projects coming out at the end of the year will have more suitable selling prices," the report asserts.
In particular, the Brokerage Association also affirmed that in 2021 it is unlikely that there will be a real estate bubble because the economy is growing at a good rate, the demand is still strong, and the price can be controlled. Some localities that have hotly developed the real estate market, which have been stalled in the past, such as Da Nang, Quang Nam, Khanh Hoa, Phu Quoc, etc. will be vibrant again. Notably, land near industrial zones will fluctuate sharply. Localities need policies to manage and stabilize the market.
In some markets near urban areas, especially in Hanoi, there has been a recent increase in prices from 50 to 70%, Mr. Nguyen Van Dinh, Vice President and General Secretary of the Brokerage Association, warned about the risk of investment. virtual private.
According to Mr. Dinh, with projects with synchronous infrastructure investment, especially the professionalism of some large investors, strong projects in some markets, will contribute to promoting a "new ground". for the real estate market in some regions and places, especially in the central areas and new urban areas.