Will housing prices cool down at the end of 2022?

VNDirect’s report, citing CBRE’s data, said that in the first quarter of this year, the supply of new apartments in Ho Chi Minh City decreased by 48% year-on-year (svck) to 884 units, the lowest quarterly level since 2013. , leading to the number of primary apartments sold in the quarter decreased by 53%, to 1,247 units.

The average price of primary apartments increased by 7.7% svck in the first quarter of 2022, slowing down from 14.6% svck in 1Q2021 and 6.9% svck in 4Q21.

As for the housing segment, the average secondary price in some areas decreased by about 5% svck in the first quarter of 2022, however, contrary to the general trend, the rest of the city is the Northwest area, land price has a strong upward trend.

Specifically, according to Vndirect Research, land prices in Cu Chi district (+72.7% svck, +116.5% within two years) because this administrative unit is proposed to the city instead of the district.

In Hoc Mon district, land plot prices also continued to record a double-digit increase in the first quarter of 2022, increasing by 13.5% svck (+51.8% within two years).

Similarly, in Hanoi, the report said that primary apartment sales in the first quarter of 2022 increased 16% (svck) to 4,800 units, while new supply decreased by 20.3% svck to 3,525 units. The average price of primary apartments in the quarter increased impressively by 13.3% svck to USD 1,655/m2.

As for the housing segment, the secondary prices of 12/15 districts in Hanoi recorded a sharp decrease, an average decrease of 7.7% qoq, but still an increase of 5.7% svck.

According to the report, although the price of secondary land in Hanoi increased slowly in the first quarter of 2022, it still increased by 5.7% svck. Notably, land prices in Long Bien, Bac Tu Liem decreased by 10-15% compared to the previous quarter after increasing by 20-25% in 2021.

“The real estate industry is facing many challenges that affect the industry’s outlook, including: rising interest rates affect home buying decisions, rising material prices may increase housing prices, tightening bank loans. customers into the real estate sector and strictly supervise the issuance of corporate bonds (Corporate bonds).

In the context of tightening credit to the real estate sector and closely monitoring corporate bond issuance, we believe that investors may face challenges in raising capital in the next few quarters. Therefore, sales activities will likely be accelerated while land bank expansion will slow down, which may help house prices cool down in the remaining quarters of 2022,” VNDirect Research forecast.

According to Minh Quan