Local real estate “bubbles” appear

Association of Brokers real estate Vietnam (VARS) believes that the increase in house prices but low liquidity is a signal that a local “bubble” has appeared. According to experts, the phenomenon of land price “bubble” only forms locally in places where land fever is present, mainly in neighboring areas that “eat along” with the heat of price increase in the core area, the degree of influence. does not represent the market as a whole.

Currently, people’s real demand for housing is still very high, especially in big cities such as Hanoi, Ho Chi Minh City, and Binh Duong.

According to VARS, the reason for the continuous increase in real estate prices despite the epidemic is the process of forming new urban areas, which affects the trend of “catching up” with planning and the opportunity to hold land while waiting for price increases. Along with that, the supply is in short supply, unable to meet the demand of the market.

Many investors choose real estate as a safe haven and expect the economic stimulus package to increase the demand for real estate speculation. These factors have contributed to pushing up land prices.

Statistics of Batdongsan.com.vn on the market situation in the first quarter show that while the types of apartments, residential houses, and resort real estate are little changed, the land plots and project plots in many provinces are still vibrant. The national interest in land plots decreased by about 7% compared to the same period in 2021 but increased by 4% compared to the first quarter of 2019 – when the COVID-19 epidemic had not yet appeared. After the epidemic, the demand to buy and search for real estate is still very large.

Notably, the cash flow for land investment is tending to move into the central region with an increase of 14%. Meanwhile, the level of interest in land plots in the North and the South decreased by 11 and 12%, respectively. The areas with the strongest increase in interest are Dak Lak, Khanh Hoa, and Binh Thuan. Along with that, the selling price in many provinces also increased sharply compared to the same period in 2021. Typically, the price of land for sale in Thanh Hoa increased by 35%, Khanh Hoa increased by 26%, Binh Thuan increased by 13%.

Although many provinces in the North and South have lost interest, the asking price is still at a high threshold and continues to increase. In Hanoi, interest in land plots Dong Anh, Gia Lam, Thach That, and Quoc Oai all decreased by more than 10% on average, but the asking price increased by 20%, 21%, 11% and 26%, respectively.

Some other northern localities such as Bac Ninh, Bac Giang, Hai Phong recorded a decrease of 32%, 22%, 7% respectively, but the resale price increased by 16%, 35%, and 29 respectively. %.

Similar to the southern market, the interest in land plots in Binh Duong and Dong Nai both decreased by 13% but the asking price increased by 27% and 7% respectively. Some localities with strong increase in search volume and increased selling prices are Tay Ninh, Binh Phuoc, and Long An.

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