Experts warn that the housing and land market in 2022 will be very harsh

Speaking at the recent real estate forum, Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), said that 2022 could be a difficult year for the real estate market.

President of VARS said that our country’s real estate market is in a state of serious imbalance between supply and demand. Because in 2021, despite the complicated situation of the COVID-19 epidemic, as long as the epidemic subsides, the real estate market will explode again. Even at times of stressful epidemics, technology in the real estate sector thrived, helping to stimulate the market.

At the same time, in 2021, a lot of capital flows will be withdrawn from economic sectors affected by the epidemic, to switch to finding effective investment channels such as real estate. Therefore, the market appeared a lot of F0 investors.

Meanwhile, the real estate market is lacking a lot of products, due to difficulties and legal problems, leading to a very small basket of new goods on the market.

“For any type of goods that are scarce, there will be counterfeit goods and real estate is no exception. In the context of high demand and low supply in 2021, we observe the appearance of products “just fake, just contraband” such as real estate subdivisions and plots for sale, circumventing the law, or not in accordance with the provisions of the law, creating “fevers”, “real estate bubbles”, VARS Chairman commented.

Facing this situation, relevant ministries and branches have actively stepped in to promptly prevent and correct this situation. Therefore, since the beginning of 2022, the real estate market has been under control, developing in a more stable and healthy direction.

However, Mr. Nguyen Van Dinh also warned investors that, in 2022, in addition to legal barriers, we are also facing crises and inflation. In particular, the impact of the war between Russia and Ukraine will increase difficulties for the real estate market.

“Inflation will push real estate prices up even more. Therefore, I think that we will face 2022 with many hardships, and it is necessary for the faster intervention of policies and institutions to urgently remove barriers in legal regulations. bring the market back to balance,” Dinh said.

In addition, experts at the event also said that the Vietnam real estate market in 2022 still faces two other challenges, that is, many potential plots of land are still “laying” waiting for planning and economic recovery. The economy may be slow due to fear after the COVID-19 pandemic.

Since the end of February until now, commodities such as gasoline, oil, gas, steel, etc. have simultaneously increased in price, with a high increase and showing no sign of stopping. Meanwhile, the domestic gold price also continuously fluctuated strongly, causing many people to fear about the context of inflation and this negatively impacted house and land prices, as well as fanning the wave of speculation and hoarding. asset.

According to experts, in the long term, inflation and real estate prices move in the same direction. Even in the 2 years of the COVID-19 epidemic raging, real estate prices not only decreased like other economic sectors, but also escalated, so when inflation rises, it will push property prices up in an unfavorable direction for the market. school. Because in the past, high inflation led to increased interest rates, causing the real estate market to stagnate.

Besides, inflation will cause secondary investors with available idle money to seek a safe haven, and one of those channels is real estate. And F0 investors who will use financial leverage (borrowing capital to invest in real estate) will have to be more careful because they have “empty wallets” because inflation can cause bank interest rates to rise.

According to Lap Dong