In the midst of the ‘storm’ of price increases, buying a handed-over house is a reasonable choice

Choose the handed over project because it’s affordable

Currently, the real estate market is facing a shortage of housing supply, especially affordable commercial housing (affordable housing) and social housing. These are two types of houses that meet the real needs of the majority of middle-income people and urban low-income people.

Due to a lack of supply while aggregate demand is very large, housing prices have increased continuously for more than 5 years, as shown by the housing price index of our country more than 20 times higher than the average income of the commune. festival. Since then, making it difficult for many households and individuals to create houses. Normally, industrialized countries, the house price index is only 6-7 times higher than income.

Notably, in the last 2 years, affordable housing accounted for only 1% in 2020 and disappeared in 2021 (0%), while high-end housing accounted for 74%.

In the midst of a storm of price increases, buying a house that has been handed over is a reasonable choice - Photo 1.

Apartment 101 m2, 3 bedrooms in Duc Khai apartment building, district 7 currently costs about 2.7 billion VND.

Mr. Tung Nguyen, lives in Ho Chi Minh City. Thu Duc said, he and his family moved from Ninh Binh to Ho Chi Minh City to start a business in 2017, cherished for how long to own a house soon to escape the rental situation. However, with a worker’s income of about 8-10 million VND/month along with the price of apartments on the market, there are no longer apartments under 35 million VND/m2, making it difficult to buy a house. towel.

“The recent epidemic has made the family’s financial deficit, it took the husband and wife to accumulate more than 1 billion dong, then they plan to take a bank loan to buy a house. Also learn about a few projects in In the city, but the price is too high to buy. Even if you can get a loan to buy a house, you will probably pay off the debt later in life,” Tung said, adding that the couple decided to buy a house in a number of projects. handed over the house a few years ago to “breathe” about money more.

In fact, everyone wants to own a new house. However, with the “price gouging” of many projects on the market, causing them to change their taste in order to settle down, it was the choice of a house that was handed over a few years ago.

The survey of Cho Tot Nha website shows that the handed over projects have a much more acceptable price with the average price of completed apartments in Ho Chi Minh City this year has decreased by about 15% compared to 2021, from about 38 million VND/m2 to about 32 million VND/m2.

Specifically, the price of apartments in a completed apartment building in Binh Chanh district is about 18 million VND/m2 while the price of apartments in the new project is about 22 million VND/m2; the price of finished apartments in District 8 is about 11% lower; Tan Phu district is about 38% lower than the price of apartments in the new project.

Meanwhile, in the city. In Thu Duc, the price of apartments was completed a few years ago, ranging from 33-34 million VND/m2, but the price of apartments in new projects has increased by 42 million VND/m2, in some places over 100 million VND/m2. For example, at Him Lam Phu An apartment building (Thu Duc city), a 70m2 apartment with 2 bedrooms costs about VND 2.4 – 2.7 billion depending on floor location and furniture…

Sharing with before the market’s dilemmas, real estate expert Nguyen Hoang said, customers should look for Grade B and C apartments that have been built and handed over about 5 years back. prior to. These apartments have a moderate price and have been used for a while, so the price increase is not as high as new projects. The disadvantage of this method is that the buyer has to pay 1 time to the seller, instead of being paid according to the progress of the apartment forming in the future. This creates financial pressure on buyers.

“When intending to buy an apartment, first of all, it is necessary to determine the apartment that is suitable with the conditions and circumstances, from the location, the necessary utilities, the area of ​​the apartment, the value in accordance with the selling price, the ability to pay. … not necessarily a luxury apartment or a new apartment.In addition, customers need a certain amount of money (at least 30% of the value of the house to buy, the rest can be borrowed from a bank) and collected. stable income to ensure payment for daily living and repay the bank when borrowing, whether buying a house that has been handed over or built in the future,” Mr. Hoang noted.

And Ms. Nguyen Huong, CEO of Dai Phuc Land, said that buyers want to own apartment projects in the mid-range segment, affordable in the price range of about 2 billion VND, the area around Ho Chi Minh City, in 15 km radius is the place to choose, because of its large land fund, low cost… and suitable for many investors to develop projects in this segment.

“Currently, it is very difficult to find apartments with the price of 30 million VND/m2 in big urban areas like Ho Chi Minh City. When investing and doing business, the first thing real estate businesses think of is efficiency. As a result of the project, those are projects that are in line with market trends, low risk, high profitability… so the high-end segment is often chosen by investors, especially projects projects in large urban areas, Ms. Nguyen Huong said, and said that the trend of customers switching to buy houses that have been handed over is reasonable at a time when house prices are constantly increasing.

The market is out of balance

The real estate market report of the Ministry of Construction in the first quarter shows that affordable apartments, priced from 25-30 million VND/m2 in the central areas of urban areas such as Hanoi and Ho Chi Minh City, are mostly As if no longer exists, there are only a few projects in suburban districts and districts.

Commenting on apartment prices, the Ministry of Construction said that apartment prices in localities tend to increase, the average increase rate is about 3%. In Hanoi, apartment prices increased by 4-5% and higher than in Ho Chi Minh City (1-2% increase) compared to the end of 2021.

According to CBRE Vietnam, the average selling price on the primary market in the first quarter was US$2,390/m2 (more than VND 54 million/m2), up 3.9% QoQ and 7.8% YoY. The average price level continued to increase due to the structural shift from affordable, mid-range to high-end and luxury.

The report of the HCMC People’s Committee to the Ministry of Construction also shows the same thing. In general, the situation of the real estate market in Ho Chi Minh City is still active and developing but not stable, it needs to be adjusted to solve the supply – demand mismatch, because there is a tendency to drift towards the high-end real estate segment. . The situation of the real estate market has not changed on a large scale.

Specifically, in the first quarter, the Department of Construction of Ho Chi Minh City confirmed the eligibility to raise capital for the sale of housing products to be formed in the future of 5 projects, with a total of 1,172 houses, down 84.66% compared to the previous quarter. with the fourth quarter of 2021, down 66.01% over the same period last year. The market development is not stable, the supply of projects increases – decreases unevenly, especially the affordable housing segment needs to be adjusted up to meet the needs of the market and the majority of people.

From the high house prices, while the supply is dripping, HoREA Chairman Le Hoang Chau suggested that in order to reduce housing prices in the real estate market, there must be effective solutions to increase the supply of housing. Firstly, the authorities need to remove some obstacles and inadequacies of some legal regulations to increase the supply of projects to meet the diverse housing needs from affordable to high-end for all floors. population in the society.

At the same time, in order to ensure social security for housing, it is necessary to perfect mechanisms and policies to facilitate the development of social housing and affordable housing suitable to the income of the majority of people in the commune. festival.

“In order to have more social housing and affordable housing with income, it is necessary to remove obstacles and inadequacies of a number of current legal provisions and supplement new mechanisms and policies (currently there is no ) to promote the development of these types,” said Mr. Le Hoang Chau.

In parallel, in order for the real estate market to develop transparent, healthy, stable and sustainable, Mr. Chau said that it is necessary to review to improve mechanisms and policies on capital market development, including: Market currency – credit, securities, corporate bonds, coupled with building property tax policy…

According to Vu Pham

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