Why are house prices in neighboring countries increasing slowly but Vietnam still skyrocketing?
According to the sheet Strait Times (Singapore), the latest real estate restriction of the Singapore Government has had a strong impact on the “hot” private real estate market of the island nation, which is already very active. That’s because home price growth has slowed to just 0.4% in the first quarter of this year.
Singapore house prices increase slowly due to the influence of psychological factors
This marks the slowest quarterly price increase since Q2 2020. Specifically, the second quarter of 2020 increased by 0.3%; the second quarter of 2021 increased by 5% and the highest was in the second quarter of 2010, an increase of 5.3%.
Some of the reasons cited are scarcity of new projects, uncertainty from the Ukraine conflict, traditional New Year’s celebrations and a sharp increase in Covid-19 cases disrupting interest and business. sales number.
Ms. Tricia Song, Head of Research at CBRE Southeast Asia, said:New projects launched for sale in the quarter were limited to smaller-scale projects because investors applied the measure of waiting for the situation and watching new cooling measures. Likewise, buyers mostly hold back to assess the situation“.
Mr. Nicholas Mak, Head of Research and Consulting at ERA Singapore, said thinner transaction volumes contributed to weaker price appreciation compared to the previous period of strong house price increases.
According to public market data, in the first quarter of 2022, there were more than 1,600 newly purchased units in Singapore, excluding luxury apartments, and about 2,600 resale apartments – changing owners in the first quarter. The figure is much lower than the 3,018 new homes and 4,748 resale homes that were traded in the previous quarter.
Singapore house prices fell in most areas. Illustration: Indesignlive.
The slight price increase was largely due to the land-attached property segment, which grew by 4%, according to a quick estimate from the Urban Redevelopment Authority (URA) on April 1. This is the highest quarterly increase for land prices since the first quarter of 2021 when it increased 6.7%. Quarter 4/2021 increased by 3.9%.
Wong Xian Yang, Head of Singapore Research at Cushman & Wakefield, said the housing segment was not affected by the new cooling measures as demand was mainly driven by owners and the supply of homes. This is limited.
In contrast, landless real estate experienced a quarter-on-quarter decline in value from the first quarter of 2020, with a 0.6 percent decline. By region, only the suburbs, or out of the CBD, saw an increase of 1.9%, compared with an increase of 5.7% in the previous quarter.
Christine Sun, Senior Vice President of Research and Analytics at OrangeTee & Tie, said: “New home supply is lacking in suburban areas as there have been very few major sales this year. The total unsold supply of opened projects continued to decline.”
In the periphery of the city, or the rest of the CBD, landless house prices fell by 3%, reversing a sharp increase of 6.7% in the fourth quarter of 2021.
House prices in the central districts of Singapore fell 0.5%. Illustration: CDL Commercial.
Meanwhile, house prices in the central districts, or central areas, fell 0.5% in the first quarter, reversing from a 2.7% increase in the fourth quarter.
Mr. Ong Teck Hui, Senior Director of Research and Consulting at JLL, sees difficulties stemming from rising interest rates and geopolitical uncertainty. “This will lead to increased costs, which could depress economic growth, employment and wages, and possibly affect sentiment. [tiêu dùng – PV]”.
PropNex said easing safety controls and easing travel restrictions could bode well for property sales. In the short term, the Singapore property market could benefit slightly from safe-haven inflows.
House prices in Vietnam still increase due to supply and price of construction materials
In Vietnam, according to a report by VNDirect Research, the residential real estate market in 2022 will continue to face challenges such as rising input prices including land and construction material prices, as well as a Some legal “bottlenecks” have not been removed. Construction costs continue to rise, especially steel prices are forecasted to pull prices up. Even if material prices remain at their current high levels for at least the next two years.
House prices in Ho Chi Minh City and Hanoi are both increasing and may increase in the next months of 2022. Illustration: Cho Tot.
According to the representative of Batdongsan.com.vn, the real estate market in early 2022 will reopen and be vibrant again in many segments. However, the apartment segment in Ho Chi Minh City is experiencing a shortage of primary products for sale, pushing apartment prices to continue to escalate. Apartment prices are forecasted to continue to adjust in the remaining quarters of the year. Along with that, the projects handed over in 2022 will also witness a new peak.
In Hanoi, in the first month of 2022, the asking price of apartments in Hanoi increased by 4.6% compared to December 2021. The selling price of adjacent villas also recorded an escalating trend in Gia Lam and Long Bien areas when increasing by 27-38% compared to the previous month.
In addition to rising asking prices, residential real estate interest in online searches also shows an upward trend. The type of villas and townhouses in Hanoi and Ho Chi Minh City have increased by 29-30%, respectively.
Business and Marketing
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
