The segment of villas and townhouses dominates the market, land prices cool down

Real estate experts say that investors and customers recently tend to prioritize real estate products with high demand for purchase and sale, for rent, with a history of liquidity and profitability. well, so villas and townhouses are gradually returning to predominance.

Adjacent villas dominate the real estate market

The survey shows that, in April 2022, while the demand to buy most types of real estate tends to decrease compared to the same period last year, such as private houses down 9%, land plots down 8%, villas, Townhouses saw an average increase of 7% in interest across the country.

Specifically, in the provinces of Quang Ninh increased by 167%, Hung Yen increased by 43%, Khanh Hoa increased by 18%, Quang Ninh increased by 14%. The supply of villas and townhouses nationwide also increased by 17%.

Explaining the heat of the villa and townhouse segment is returning, experts say that, before information about inflation, real estate buyers now prioritize real estate products with high demand. buy, sell, rent high, have a history of liquidity and good profitability. Villa, adjacent is one of the types of real estate that appreciates well and has the highest successful transaction rate in 2021, so it continues to attract a great deal of interest.

Accordingly, the selling price of villas and townhouses also increased significantly, especially in the districts of Hanoi and Ho Chi Minh City. Ho Chi Minh. The selling price of villas and adjacent houses in Gia Lam, Hoang Mai and Hoai Duc (Hanoi) increased by 82%, 46%, and 39%, respectively. This index in Tan Binh, District 7, District 9 (Ho Chi Minh City) also recorded an increase of 60%, 35% and 25%.

The apartment market is still on an upward trend. The average selling price of apartments in Hanoi and Ho Chi Minh City. Ho Chi Minh City in the first 4 months of 2022 increased by 9% and 3.4% respectively compared to the average price in 2021.

In terms of supply and demand, in April 2022, Hanoi witnessed increased interest in all apartment segments compared to April 2021. In which, high-end apartments increased the highest, at 21%, affordable apartments increased the lowest, at 5%. The number of listings for high-end apartments also increased by 13% while the number of ads for affordable apartments decreased by 3% compared to April 2021.

In the city. In Ho Chi Minh City, the demand for high-end and mid-end apartments increased by 14% and 3% respectively, while the affordable segment decreased by 13% over the same period last year. The amount of apartments for sale in the city. In all segments of Ho Chi Minh City, there was a downward trend, especially affordable apartments fell the most, at 21%, showing that cheap apartments are increasingly absent from the market.

The real estate market gradually stops fever

Contrary to the increase of the villa and townhouse market, according to experts, due to many factors, the Hanoi land market is showing signs of slowing down. Issues of capital, credit tightening, etc. are tightened, making the psychology of buyers as well as investors become cautious.

According to a reporter’s survey, due to the mentality of wanting to accelerate the amount of inventory to the market, investors did not hesitate to lower the selling price compared to the previous time.

In the area of ​​Thach That district, in the past, land fevers occurred continuously, at the hottest time, plots of land in the village cost up to nearly 20 million VND/m2. Specifically, the land plots in the lane where cars can be moved range from 12-18 million VND/m2. The land plots in a better location cost from 20-25 million VND/m2. The land plots in the main road location are priced at 30 – 45 million VND/m2.

Talking to reporters, people here said that up to the present time, the situation of people and houses pulling together to buy land and see the land has no longer happened, the scene of cars is crowded. Trading competition is no longer available.

In Hoang Mai district, from 2021 to now, house and land prices have increased by more than 30%, even in beautiful locations, house prices have doubled.

For example, in the area of ​​Nam Du street (Ling Nam ward), a house with an area of ​​​​30m2, built 5 floors, located in the lane where cars avoid each other, at the end of 2020 cost 3 billion VND, but now it has increased. to 3.8 billion VND to 4 billion VND, an increase of about 30%. Some houses on Nam Du, Thanh Dam, and Tay Tra streets a year ago were priced at between VND 100 million and VND 105 million/m2, now priced at VND 135 million/m2.

However, the liquidity of real estate in this area is not high. A house with an area of ​​​​40m2, built on 4 floors, located on the street front was previously for sale for VND 5.8 billion, but now the owner has reduced the price to VND 4.9 billion.

Le Thanh Hoai, an investor in Thach That district, said that in some areas such as around the National University project, in the past, investors with financial potential sought to buy a large piece of land. After separating the plot for resale, now no one buys it anymore, because Hanoi tightens the division of the plot to separate the agricultural land. These self-subdivided land transactions are almost illiquid. There are cases of selling stop loss after buying from previous investors.

Compared to the time of March 2022, the ground land is no longer hot in the period from April 2022 to present. Back in the first quarter of 2022, the real estate market was still quite active with national interest increasing by 4% compared to the pre-Covid-19 period (first quarter of 2019).

Many localities have significantly increased both in terms of purchase and sale of land, such as Khanh Hoa, Binh Thuan, and Thanh Hoa. However, entering April 2022, the level of interest in land products sold across the country has decreased by 18% compared to the previous month and decreased by 8% compared to the same period in 2021.

Commenting on the cooling of the land, Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, said that in the past time, there have been many unexpected changes in the market. Typically, negative information about violations of large real estate enterprises, state management agencies tightening tax regulations, control of subdivisions for sale of plots, etc. These are the reasons why people buy and investors are more cautious.

According to batdongsan.com, in Hanoi, the level of interest in land plots in Dong Anh, Gia Lam, Thach That, and Quoc Oai all decreased by more than 10% on average. Other northern markets such as Bac Ninh, Bac Giang and Hai Phong also recorded a decrease of 32%, 22% and 7% respectively. Similar to the southern market, the interest in land plots in Binh Duong and Dong Nai both decreased by 13%.