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Inflation, scarce supply and anticipation of investment are making real estate prices “dance”.

According to Dr. Su Ngoc Khuong, Senior Director of Savills Vietnam, under the impact of the war and the impact of Covid-19, the Government’s goal of keeping inflation below 4% is very challenging.

An analysis by Savills World Research has shown that cost-push inflation (inflation caused by costs such as raw materials, rising labor costs) will lead to limited real estate supply. In particular, in Vietnam, the supply of residential real estate is very limited in recent times. People mainly invest in land, while residential real estate products including land and properties on land account for a lower proportion.

Therefore, Dr. Su Ngoc Khuong said that in the context of world economic and political instability, rapid inflation and tight supply, the real estate market includes both residential and commercial segments in Vietnam. will increase prices significantly and is an investment channel to help reduce risks in the context of inflation.

Commenting on the current real estate market, Mr. Vo Huynh Tuan Kiet – Director of CBRE Vietnam’s Housing Marketing Department said that from the end of 2021 to the beginning of 2022, land prices will increase as well as land fever. wider than in the 2018-2019 period.

The heat of the real estate market broke out not only in big cities but also in satellite urban areas and neighboring areas. Land fever has occurred in some areas adjacent to Ho Chi Minh City such as Dong Nai, Binh Duong, Binh Phuoc, Tay Ninh; Duc Hoa, Ben Luc of Long An Province; Phan Thiet, La Gi, Ham Thuan Nam and Ham Thuan Bac areas of Binh Thuan; Bao Loc Plateau, Lam Dong; Buon Ma Thuot, Dak Lak in the Central Highlands and some provinces in the Central and Northern regions.

Mr. Vo Huynh Tuan Kiet said that although Vietnam’s economy was greatly affected by Covid-19, there was still growth. Information on regional planning, local planning, and projects has also been published, and many localities have also actively invested in transport infrastructure investment, attracting foreign enterprises to invest in industrial parks and vacation projects. nursing…

These factors attract investors’ attention and set out a forward-looking investment strategy. “The price of land is therefore pushed up due to the fast buying and selling situation,” he said.

In another perspective, Mr. Phan Cong Chanh, a real estate expert, said that real estate “fever” is partly due to the influence of the Vietnamese stock market.

He assessed: “Real estate and the stock market are compared to two interconnected vessels. After every impressive stock market rally, real estate benefits. It can be seen that in the period of 2020-2021, VN-Index continuously broke the top both in terms of scores and liquidity. Besides, the F0 class of investors entering the market makes the market even more exciting. Vietnam’s stock market is in transition from emerging to frontier market. Therefore, land fever can be explained by a part of stock investors taking profits and transferring profits to real estate.

Do Huong Giang, Deputy General Director of Property X Joint Stock Company of Hung Thinh Group, shared that although investing in the real estate market has great opportunities, investors need to focus on safety and sustainability. steady.

For example, with the land plot segment in the coastal provinces, she believes that investors should choose products with clear planning, certified by the government or project planning by the investor with the financial situation. The main business is stable, has a long-term investment plan.

Commenting on the real estate market this year, Mr. Vo Huynh Tuan Kiet said that the price trend will continue to increase, but the speed of increase will be fast or slow depending on the absorption capacity and acceptance of the market. Supply in 2022 will also be improved, creating momentum for the coming period.

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According to Phong Linh

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