Transactions are quiet, why hasn’t house prices come down yet?

From the beginning of 2021, the fever real estate drag to. This is assessed by some experts because during the COVID-19 pandemic, money is not poured into production but into real estate, which has “triggered” prices to increase in all regions. And after the pandemic, property prices in some major cities continued to rise.

The Ministry of Construction has just reported on the housing and real estate market in the first quarter of 2022 showing that prices increased sharply in both the South and the North.

For example, the Sunshine Garden project (Hai Ba Trung) costs about VND 37.1 million/m2, Sunshine City (Bac Tu Liem) costs about VND 41.8 million/m2. In HCMC: Happy Valley (District 7) costs about 47.6 million VND/m2, Thao Dien Green project in District 2, Ho Chi Minh City costs about 100 million VND/m2, Empire City project – The Monarch In Thu Thiem urban area, the price is about 200 million VND/m2…

Transactions are quiet, why hasn't house prices come down yet?  - first

House prices show no signs of cooling down.

For individual houses, land plots, in Hanoi, the Ring 4 areas passing through Hoai Duc district cost more than 100 million/m2; the area near the project Vinhomes Wonder Park Dan Phuong costs about 150 million VND/m2; In the area of ​​Nhat Tan bridge in the East of England, the price is about more than 200 million VND/m2. Also in Ho Chi Minh City. In Ho Chi Minh City, land at Thu Thiem Villa (District 2) costs about 125.3 million VND/m2, The EverRich III (District 7) costs about 117.5 million VND/m2, Kim Son (District 7) costs about 136, 5 million VND/m2.

According to the Ministry of Construction, apartment prices in all localities tend to increase, the average rate of increase is about 3% compared to the end of 2021. Prices of individual houses and land plots have a range. higher than that of apartments (an average increase of about 5-10% compared to the previous quarter); By the end of March 2022, in some localities, the suburbs of Hanoi and Ho Chi Minh City had the phenomenon of price increase and the number of land transactions increased rapidly, in some places the price increased by 15-20% compared to the end of the year. 2021. Meanwhile, licensed apartment and real estate projects are very limited.

The report of the Ministry of Construction also shows that, in the commercial housing segment, there are 22 projects licensed in the first quarter of 2022, the number of projects is about 47% compared to the fourth quarter of 2020. 2021 and equal to about 54% over the same period in 2021.

Explaining this situation, Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, said that the most fundamental and profound cause of this situation is the lack of supply and the increased demand. The supply in the market is scarce because real estate projects are almost frozen and cannot be approved because legal regulations are conflicting and overlapping, creating invisible barriers. dared to approve the project to pump the source of goods into the market.

Specifically, Mr. Dinh analyzed, in the context that the supply cannot be improved because of the law, the most basic consequence of high demand and low supply is to increase housing prices in localities, even inflated land prices. increased, increased indiscriminately, creating chaos in the market, becoming a barrier restricting the projects of mainstream investors, creating contradictions, instability, and complexity in the real estate market. produce.

At the recent seminar “Decoding the land fever”, Mr. Vo Huynh Tuan Kiet, Director of Housing Marketing Department at CBRE Vietnam explained the increase in house prices due to economy Vietnam still has a relatively good growth rate despite the impact of COVID-19. Information on regional and local planning, deployment of infrastructure connectivity was also published, while many foreign enterprises developed industrial parks and resort projects… leading to a forward-thinking investment mentality, pushing forward Real estate prices go up.

On the other hand, in the context of high inflation, investors have a need to find an asset anchoring channel, and real estate is one of the safest and most effective channels.

In order to limit the bluff price increase, Mr. Nguyen Van Dinh said that the Ministry of Construction should suggest localities to implement the Government’s policy and direction on strengthening decentralization and decentralization of powers for localities, proposing localities perform a number of tasks and solutions.

Specifically: Localities shall urgently organize the elaboration, appraisal and approval of urban and rural construction plannings, master plans and plans on land use to ensure sufficient land fund for social housing development.

Localities need to make public and transparent information about construction planning, lists and progress of infrastructure development projects, real estate projects to prevent spreading rumors, investment mechanism to push up prices for illegal profiteering.

Expeditiously develop and approve local housing development programs and plans for the period 2022-2015 and period 2022-2030 to have a basis for approving investment policies, selecting investors and formulating and approving approve the implementation of housing development projects in the area.

In addition, localities focus on reviewing and removing obstacles in procedures to complete investment preparation procedures, select investors to implement real estate projects, commercial housing projects, etc. social housing as prescribed by law.

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