Real estate prices continue to escalate, there is a clear differentiation when buying
According to the latest report on the real estate market of JLL, in Ho Chi Minh City. Ho Chi Minh City in the first 3 months of the year is usually the lowest quarter of the year due to the long holidays and Lunar New Year. Accordingly, the new supply in the quarter was only 1,518 apartments, down 76.6% compared to the previous quarter.
Citi Grand in District 2 is the only project to open for sale this quarter with a total of 666 units. The remaining supply comes from projects that are on sale, focusing on the high-end segment and above such as Grand Marina and Thao Dien Green projects.
The demand shift was similar to the new supply, in which the total sales in the first quarter of 2022 reached 1,507 units, down 74.1% compared to the previous quarter. The market recorded a divergence in demand between investment buyers and residents due to the state bank’s move to tighten credit for real estate loans. While the restrictive home loan policy has had a certain impact on speculative and even residential demand, the investor’s attractive incentive programs still attract the attention of long-term investors from idle capital.
The price level continues to record a new record Within the past 10 years, the market in Ho Chi Minh City. Ho Chi Minh City recorded an annual cumulative growth rate of about 11.8% year-on-year as supply led demand. The improvement in the quality of supply in the context of increasingly high demand helped improve the price level in the primary market, reaching $2,927/m2.
The increasingly scarce land fund also contributes to the trend of increasing apartment prices. In Thu Thiem Urban Area, the land auction event in December 2021 attracted the interest of buyers in this area, causing the average primary selling price in the urban area to increase by 3.0% quarter-on-quarter, higher than 2.5% over the same period last quarter. However, in order to keep pace with demand in the context of a sharp increase in selling prices, incentives on payment methods and discount programs are still widely applied by investors.
According to JLL, the prospect of green living is the driving factor in demand. Total new sales in 2022 are expected to be at 32,000 units, equivalent to the total supply in 2020 and 2021. Future supply will continue to open. wide along the East-West infrastructure axis, in which Ho Chi Minh City. Thu Duc in the east accounted for 55% of new sales. The three western districts, including Binh Chanh, Binh Tan and Tan Phu, will also be the focal point with the supply in this area expected to account for 22% of new supply this year.
Investment sentiment increased slightly due to customer demand for shelter in real estate to avoid inflation risks, but it will also be somewhat limited under the impact of credit tightening. Green living is the leading trend of buying to stay in the context of buyers focusing on quality of life after the pandemic. Selling price continued to grow but at a slower rate than in the period of 2020 – 2021 in the context of abundant new supply.
In Hanoi, the supply increased QoQ, in the first quarter of 2022, the supply of Hanoi apartments market recorded positive signs with 3,260 units launched for sale, up 7.3% QoQ, but still down 10 .6% year on year. The quarterly increase sends positive signals that the supply is continuing to recover after the whole country started the normalization process with the pandemic. The mid-end segment leads the market when accounting for 75% of new supply, mainly from existing projects such as Vinhomes Gia Lam: Vincity – The Pavillion subdivision (about 650 units), Imperia Smart City (about 300 units). ).
Especially, in this quarter, the market also welcomed two new projects called The Essensia (mid-end segment, size of 496 units) and Tecco Diamond (Affordable segment, scale of 665 units) in the area. suburban.
The improvement in supply and the fear of inflation that led to an escalation in house prices have contributed to boosting the demand for apartments, especially for real buyers. In the first quarter of 2022, the number of apartments sold reached 4,391 units, up 31.7% quarter-on-quarter.
In which, the mid-end apartment market accounted for 74.6% of sold-out units, concentrated in large-scale projects such as Vinhome Ocean Park (Gia Lam) or Vinhomes Smart City (Nam Tu Liem). Good demand is not limited to districts with good market sentiment thanks to large projects such as Gia Lam and Nam Tu Liem, a few suburban districts such as Hoai Duc and Thanh Tri also have good sales rates in the first quarter. 2022, thanks to projects suitable to the needs of ordinary customers in the period of scarcity of cheap supply and increasing selling prices.
The selling price of primary apartments in Hanoi peaked at $1.72/m2, up 11.2% YoY. This is the highest annual increase in the past 10 years. In addition to the shortage of new supply during the epidemic period, the expensive cost of construction materials and the entry of projects in the High-end and Luxury segments also contributed to the primary price in the whole market. increase. Not only that, the primary price in the mid-end apartment market shows an escalation when many projects have a year-on-year price increase of up to 10%.
JLL forecasts, the entry of many Luxury segment projects such as Heritage West Lake (Tay Ho) or Sieu Sang such as The Grand (Hoan Kiem) is expected to push primary selling prices across the market to continue to increase.
In the context of banks tightening credit for the real estate sector, supply and demand are expected to be affected in the coming time. For small investors, the difficulty in accessing capital can cause projects to be delayed, reduce construction scale, affect sales progress and payback rate. Meanwhile, the demand from the group of investment buyers will decrease and the group of real buyers who need to use financial leverage to buy apartments will also face difficulties in the coming time.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
