House prices increase, Ministry of Construction directs hot

Announcement is slow, not close to the market price

The Ministry of Construction has just sent an official dispatch to the People’s Committees of provinces and cities on determining and announcing prices building materialsconstruction equipment, construction price index.

According to the Ministry of Construction, many localities have organized to determine construction prices, the construction price index closely follows the market’s movements and announced monthly in the context of rising prices, difficult to predict.

Some localities determine construction prices and construction price indexes on a quarterly basis, announced late, not closely following market developments or not close to market prices.

However, there are still some localities that determine construction prices and construction price indexes on a quarterly basis, which are announced late, have not followed market developments or are not close to market prices. Many published lists still lack some key building materials.

“If this situation persists, it will cause difficulties and problems for the preparation and management of construction investment costs, construction contracts of related entities, affecting the implementation progress and settlement work. budgets of projects” – the Ministry of Construction assessed.

To remove difficulties in formulating and managing construction investment costs and construction contracts, the Ministry suggested localities direct construction departments to publish construction price indexes, construction material prices, construction equipment in the area.

The ministry also noted that localities should assume the prime responsibility for, and coordinate with relevant agencies in, regularly monitoring and following developments of the construction market in order to promptly update and adjust the announced prices of construction materials, index construction price to suit the market price level, avoiding the phenomenon of “speculation, blowing prices”.

In addition, the Ministry proposes to review and update popular construction materials and equipment on the list for publication. For major types of materials with high fluctuations, the organization shall determine and announce the prices of construction materials on a monthly basis to meet the requirements of management of construction investment costs and construction contracts.

For projects and works that are implemented under the specific mechanism subject to Resolution No. 43 of the National Assembly and the construction investment project of the East North-South Expressway in the 2021-2025 period, the Ministry of Construction propose to proactively assign tasks to the Department of Construction and related units to promptly and effectively perform the tasks of construction investment management.

Construction material prices soar, house prices at risk to new highs

Strengthening and improving the quality of forecasting of supply and demand in the area, price fluctuations, especially for key construction materials, overcoming cases of shortage of sources, avoiding the situation of profit loss. Use supply and demand to speculate, increase prices, and profit.

Steel galloping 6 times a month

Recently, steel manufacturing enterprises announced that, from March 31, steel price continue to increase. This is the 6th time steel prices have increased in a row in the past 1 month.

Recorded from the beginning of March until now, steel production and trading enterprises have had many price adjustments. Recently, Hoa Sen Group Joint Stock Company announced a price increase of 300 VND/kg for items: galvanized steel sheet, galvanized steel wire, galvanized steel pipe and 2,000 VND/m2 for Hoa Sen insulated corrugated iron. The time to apply the new selling price is March 31.

Similarly, from March 16, Kyoei, Viet Duc, Viet Nhat and Pomina steel are also adjusted to increase by 500 – 650 VND/kg for CB24 coil and D10 CB300 rebar, with prices from 18,000 VND/kg. kg to 19,800 VND/kg.

Previously, on March 15, Hoa Phat Hung Yen Steel Company Limited (Hoa Phat Group) also announced an additional increase of 600,000 VND/ton (excluding VAT) for construction rebar and coil products.

In addition to the adjustment on March 15, before that, Hoa Phat Hung Yen Steel Company Limited had steel price increases on March 10, March 6 and March 4. From the beginning of the year until now, the price of rebar has been continuously increased by this company. Since the beginning of the year, the price of rebar at this enterprise has been adjusted up 6 times, with an increase of 200,000-600,000 VND/ton.

In March, the price of Vietnam-Italy construction steel was also adjusted up 3 times. Accordingly, the price of D10 CB300 rebar from 17.07 million VND/ton to 18.38 million VND/ton. Construction rebar type D10 CB300 increased from 17.46 million VND/ton to 18.78 million VND/ton.

Thus, only in March, with the increase at the end of the month, the domestic steel market experienced 6 price increases. The reason for the increase in steel price given by manufacturing and trading enterprises in each adjustment period is mainly due to the high price of steel billet and input materials, so the selling price must be adjusted.

Since the beginning of the year, the price of construction coil has increased by 2.45 million VND/ton.

In addition to steel, a series of other construction materials such as cement, sand, concrete, … also race to increase prices, causing many construction contractors to struggle, many projects are worried about progress and losses. According to calculations of many construction contractors, each project they only make about 3-5% profit. When the price of construction materials increases, the contractor has to bear a loss.

The high price of construction materials also causes many investors a headache. If you don’t increase house prices, you will suffer a loss, but if you increase your house price, you will not be able to sell your house. Rising construction costs put great pressure on prices real estate causing investors to calculate the increase in real estate prices. By now, the cost of construction materials accounts for 60-70% of the estimated value of construction work.

In particular, the sharp increase in steel prices greatly affected construction costs. According to the General Statistics Office, the cost of steel accounts for 12-16% of the total construction cost. If the price of construction steel increases by 10%, the construction cost will increase by 1%.

Conveniently style