Real estate prices continue to rise

Survey data on price fluctuations of some types real estate In Hanoi, Ho Chi Minh City, Da Nang, Hai Phong, Binh Duong, Dong Nai, Khanh Hoa, Ba Ria – Vung Tau, real estate prices increased quite high in many types.

As in Hanoi, the price of apartments increased by 1.53%, individual houses increased by 2.24%, land plots increased by 2.85%. Similarly, in Ho Chi Minh City also increased from 2% to more than 3%.

Surveys of many consulting companies also show that real estate prices recorded a fairly rapid increase in the first quarter of the year. One of the reasons is due to scarcity of supply, land prices, increased cost of materials, and long time to complete legal procedures.

Illustration. (Source: VNA)

From a different point of view, Mr. Matthew Powell – Director of Savills Hanoi analyzed the price increase pressure and the ratio inflationary increase while credit is tightened may slow down the real estate market in the short term.

However, the increase in real estate prices is forecasted to be difficult to stop in the context of escalating development costs along with explosive housing investment demand in many markets.

Sharing the same view, Mr. Dinh Minh Tuan, director of Batdongsan.com.vn, commented that real estate has a correlation with inflation. When inflation is high, real estate will also increase in price and is considered by investors as a safe haven. Inflation increases, the currency is increasingly depreciating, investors will turn to assets with accumulated value such as land or assets with long-term growth value.

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