House prices are constantly increasing ‘hot’, has the price peaked?
Market research unit Cushman & Wakefield Vietnam has just reported on an overview of the Ho Chi Minh City real estate market. Ho Chi Minh City in the first quarter of 2022 with many notable information. In particular, the selling price in the apartment segment continues to set new peaks, which is still hot news of interest.
Accordingly, Cushman & Wakefield Vietnam recorded the average selling price of the whole market including all segments at USD 3,300/m2 (equivalent to VND 75.4 million), up 8% QoQ and 27% YoY . The selling price of apartments in the apartment market has continuously peaked in the past 10 years, mainly due to the increase in land prices in the context of limited land fund, increasing cost of construction materials and the market’s acceptance of many products in the Luxury segment. and Super Luxury drives the average price up accordingly.
Total supply of apartments in the city. From 2004 to now, Ho Chi Minh City has reached 315,000 units. Of which, the new supply in the first quarter of 2022 reached 2,500 units, coming from four projects Vinhomes Grand Park (Beverly The Resort) – Thu Duc City, Akari City Phase 2 – Binh Tan District, Masteri Center Point – Thu City. Germany, Picity High Park – District 12. New projects are all in the mid-end segment and have an average selling price of 2,500 USD/m2 (equivalent to 57.1 million VND).
Regarding demand, Cushman & Wakefield Vietnam recorded that demand remained stable with 2,300 units sold in the first quarter of 2022, down 20% QoQ and 11% YoY. By the end of 2022, Cushman & Wakefield forecasts that the apartment supply will reach 10,000 units, with the popularity of the large-scale complex urban model and super-luxury apartments appearing on the market.
According to the latest report of batdongsan.com.vn, in the first quarter of 2022, the demand for apartment search increased dramatically in both big cities, Ho Chi Minh City and Ho Chi Minh City. Ho Chi Minh City and Hanoi, focusing mainly on the affordable segment.
Specifically, in February, the type of affordable apartment building in Ho Chi Minh City. Both Ho Chi Minh City and Hanoi recorded a sharp increase of 36% in searches compared to January, far exceeding the interest of private houses and land plots.
Apartment prices in Hanoi in February also increased by 4.4% compared to December 2021. Meanwhile, the price of affordable apartments in Hanoi in 2021 has grown by 8%, reaching an average of about 23.5 million/m2. Prices of luxury apartments also increased 5% to 32.5 million/m2, while high-end apartments increased 3% to 45.5 million/m2.
Mr. Troy Griffths – Deputy General Director of Savills Vietnam said, limited supply in Ho Chi Minh City. Ho Chi Minh City has been promoting buyers to expand investment to other provinces and cities, especially Dong Nai with outstanding growth in recent years. Increased supply in alternative markets provides buyers with more options, so 2022 will be an interesting year to watch expansion into neighboring provinces and the endurance of investors.
According to Mr. Nguyen Van Dinh – Chairman of the Vietnam Real Estate Brokers Association, real estate prices in recent years have increased too much compared to the real value. This makes high-priced land lots difficult to sell because even investors, they carefully calculate the real value of the land.
The expert said that, in terms of apartment prices, forecasted in 2022, experts say that a positive scenario of lowering apartment prices is unlikely, especially when the supply is scarce. Inflation and rising material costs will cause apartment prices to rise.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
