Which real estate segments will increase in price the most in 2022?
The return to growth of the real estate industry, in the coming time, is mainly due to companies restructuring operations and recovering from the negative impact of the pandemic.
Along with that is the support of economic stimulus packages that the Government, ministries, sectors and localities are actively implementing. Interest rates are still low; public investment capital is being and continues to be disbursed; foreign investment capital flows also constantly poured into Vietnam; remittances continue to operate stably (except for money from Russia and Ukraine).
It can be said that, in the short term, the Government’s economic stimulus package, no matter which area is poured into, will bring positive effects to the real estate market, contributing to improving the purchasing power of the people. general and created a push to help the real estate market bounce up after a long time of being suppressed.
According to many analysts, the expectation that people’s income will improve in the near future will benefit the real estate market in retail or industrial zones. The soon-to-be implemented economic stimulus package of VND 350,000 billion, including VND 114,000 billion for the infrastructure sector, is also expected to have a direct impact on the real estate market in the short term and is also a key growth driver. market in the coming years.
Vu Dang Vinh, General Director of Vietnam Report, said that the growth engine for the real estate industry in general, not only in the post-Covid-19 period, is also affected by the trend of urbanization and the increase of high-rise buildings. The middle class in both quantity and asset value, the rapidly increasing number of personal cars will also greatly affect the demand for some segments of high-end apartments, resort real estate and land plots.
According to the latest report of Knight Frank, in the next 5 years, it is forecast that the growth of the super-rich in Vietnam will be 26%, on par with Hong Kong (China) and Taiwan. This is the basis for many investors to continue pursuing the high-end and luxury segment in the coming time.
In addition to supportive thrusts, Vietnam’s real estate industry in 2022 also faces many challenges and obstacles when the disease control of countries around the world and Vietnam as well as the speed of economic recovery still face challenges. many difficulties in the context of inflation pressure and the number of Covid-19 cases still increasing…
According to experts in a survey by Vietnam Report, the Russia-Ukraine conflict, although directly affecting the Vietnamese economy, is not much because the economic relations between Vietnam and these two countries account for a small proportion. on total foreign investment.
However, there will still be indirect effects when the price of gasoline increases sharply, the embargoes issued with Russia also cause a shortage of goods and create more inflationary pressure, leading to the price of raw materials. materials, machinery, equipment, transportation… – which is an input to the real estate market, also increased; in which, the rental price and the purchase price of real estate will both have to adjust and be under pressure to increase prices.
As in 2021, the price of construction materials, especially steel and cement, increased sharply, causing house prices to increase by about 10%-15% compared to 2020. In addition, barriers from legal factors The supply-demand imbalance and the results of some land auctions have caused the price level to be continuously pushed up.
However, many experts are also concerned that if inflation exceeds the target level, the increase in lending interest rates may have the opposite effect, the real estate market may fall into a quiet state, but the price level will not drop sharply. As in the 2011-2013 period, due to the smoother and more stable regulation of the Government, real estate businesses as well as home buyers will face many difficulties and risks when the proportion of loans for real estate investment is pretty big.
The results of Vietnam Report’s survey of real estate experts and businesses about the average price volatility in 2022 show that land plots are the segment with the highest potential for price appreciation; The segment of land plots, agricultural land, low-cost housing and apartments is likely to increase in price in the range of 11%-20%. The segments of suburban real estate, industrial real estate, housing and mid-range apartments, and offices for rent can increase by an average of 5%-10% compared to the previous year.
In the face of land fever in 2021, experts in a survey of Vietnam Report said that in 2022, land fever may still happen, but with a lower probability.
The reason is that at present, the information about planning and infrastructure is still heavily speculative and the blowing of real estate prices by unfair methods has not yet been sanctioned. However, land fever is not only caused by the above reasons, it can be the result of macro policies, official master plans from the government,…
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
