People’s ability to buy urban houses is getting weaker and weaker
Housing supply in 2021 decreased by 35.48%, the total number of houses decreased by 14.51%; affordable apartments reduced to 0%; apartments from 20 million VND/m2 – 40 million VND/m2 decreased to 26.02%; apartments over 40 million VND/m2, an increase of 73.98%.
According to experts, those who own houses at the present time are extremely lucky. Although house prices are forecast to increase at a slower rate this year, they remain high. In that context, interest rates are expected to be adjusted to a higher level making buyers face more financial challenges.
Many experts predict that the housing market in 2022 will still be fraught with difficulties for homebuyers as inflation, supply chain bottlenecks and scarcity of supply keep home prices high.
In recent years, the demand for housing in big cities such as Hanoi, Ho Chi Minh City… is great, but the supply is very limited. Therefore, despite the two years of the pandemic’s impact, house prices in big cities still increased significantly.
According to CBRE Vietnam’s real estate market report for the first quarter of 2022, the average selling price of mid-end apartments on the primary market in Hanoi is $1,655/m2 (excluding VAT and insurance fees). maintained), up 13% YoY and 4% Quarterly. On the secondary market, the average house selling price reached 1,278 USD/m2, up 9% over the same period in 2021 (the highest increase in the past 5 years).
Many real estate experts believe that housing prices are rising too high, making it difficult for young couples to access without support from banks. Although, at the present time, tightening real estate loans is one of the moves to reduce demand for real estate and has a good effect to cool down the heat of the market today. However, it is necessary to have a mechanism so that people who really need housing can still access loans from banks.
According to the Ministry of Construction, land prices are increasing compared to people’s incomes and in big cities there are almost no apartments under 25 million VND/m2.
The report of this Ministry shows that apartment prices in localities tend to increase at an average rate of about 3% compared to the end of 2021. In Hanoi, apartment prices increase by 4-5%, high. than HCMC – currently increasing at about 1-2%. In addition, commercial housing projects in the central areas of large cities have almost no apartments with prices below 25 million VND per square meter. If so, there are only a few projects left in the districts far from the center.
In HCMC, projects priced below 30 million VND/m2 are relatively rare.
However, even if there are apartments for about 25 million VND per square meter, even in the form of social housing, it is still difficult for low-income workers to own.
The Ministry of Construction also said that currently, the products on the market are mainly mid-end apartments with the price of 30-50 million VND/m2. In these two big cities, there are also many projects with special locations with very high asking prices of 100-200 million VND/m2. For individual houses and land plots, the Ministry of Construction said, the growth margin was higher than that of apartments, an average increase of about 5-10% compared to the previous quarter.
At the end of March, in some localities, in the suburbs of Hanoi, Ho Chi Minh City, Thai Binh, Lam Dong, Khanh Hoa, Da Nang, Dong Nai… there was a phenomenon that the price and volume of land transactions increased rapidly. In some places, the price increased by 15-20% compared to the end of 2021. This development is similar to the end of Q1 and the beginning of Q2 of 2021, but the spread and price increase margin are lower.
House prices are constantly increasing, making home ownership in urban areas weaker. For real estate to meet real housing needs, Under the influence of inflation risk, prices of all segments tend to increase. Meanwhile, the income of the majority of business people and workers not only did not increase, but also decreased during the recent epidemic. Therefore, it is increasingly difficult for people with real housing needs to buy a house.
According to Mr. Le Quoc Kien, a veteran investor, due to the real demand for real estate, the bank still supports loans for this real estate segment, but the valuation is conservative, 15% – 20% lower. compared to market price. For example, almost a year ago, the central townhouse’s re-valuation increased by no more than 5%, while the actual transaction market increased by 15%. In addition, they also have tighter control over the borrower’s repayment income, and add an extra provision in addition to the debt payment and living expenses. With the increase in land prices, most workers and middle-income people cannot buy houses.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
