Real estate shows signs of deceleration

Batdongsan’s April 2022 market report said that in the past month, the demand for searching for private home information decreased by 9% compared to the same period last year. Interest in land plots for sale across the country decreased by 18% compared to March and by 8% compared to the same period last year. This development shows that the property market has a rapid psychological fluctuation because at the end of the first quarter, the number of searches for land plots across the country still increased by 4%.

This unit said that, in the past month, information about violations of large real estate enterprises along with the tightening of regulations on tax, control of subdivision, and ground sales made buyers and home owners Real estate investment more cautious.

Not only has the online market recorded signs of cooling down, but direct sales in the secondary channel have also slowed down. According to the April report of DKRA Vietnam Company, the liquidity of land plots on the secondary market of investors buying and selling has hardly recorded any arising in the past month.

The reason is that the price level is being pushed up when the market in Ho Chi Minh City appears a lot of information orienting the development of suburban districts to the district. The fact that some localities stopped granting permission to split plots, causing a sharp decrease in the supply of land plots, may affect the consumption volume in the secondary market.

Before that, the apartment market also recorded weak liquidity. In the first quarter, the whole city sold 1,385 units in the new basket, down 68% compared to the consumption volume of the fourth quarter of 2021 (reaching 4,344 units) and down nearly 30% compared to the first quarter of 2021 (1,960 units sold). Consumption of condominiums in the first quarter of this year was even worse than during the difficult period due to the impact of the epidemic last year.

Similarly, the report of CBRE Vietnam said that the number of apartments sold in the first quarter of the year in Ho Chi Minh City was only about 1,247 units, down 78% compared to the previous quarter and down 53% compared to the same period last year.

Survey of VnExpress It also shows that by the middle of the second quarter, the secondary apartment market appeared many cases of F0 investors (first-time homebuyers). discharge due to financial distress. When the preferential interest rate expires, the selling momentum begins to appear. Although the level of cutting loss only stopped at VND 50-200 million, this movement showed that the housing market is not sustainable.

In the first week of May, real estate credit tightening moves, rising interest rates, high anchoring prices, and low buyer sentiment are making investors (home developers) tend to race. offer preferential packages, great promotions, payment extension for a long time to stimulate demand. This is a manifestation of indirect or silent price reduction (implicitly but not directly adjusted selling price).

Real estate experts say that the signs of slowing down that have just appeared need to be alerted early. As of May, there has not been a prolonged deceleration, so it is necessary to continue monitoring for the rest of the second quarter to determine the general trend of the market in the coming time.

However, experts see that real estate is under a lot of legal pressure, credit tightening, and low liquidity, so market participants are starting to be more cautious.

Vu Le