“Startled” with house prices

Worried when house prices keep going up

According to a representative of the Ministry of Construction, house prices in the past 2 years have not stopped increasing. A recent statistics of the Ho Chi Minh City Real Estate Association showed that Vietnam’s housing price index is more than 20 times higher than the average income of society, making it difficult for many households and individuals to live. buy housing. In which, in many developed countries, this index is only 6-7 times higher than income.

For 13 consecutive quarters, house prices have been on an upward trend and have shown no sign of stopping. In many places, the unreasonable increase has made many real estate difficult to find buyers. Many investors fall into the “earnings on paper” situation.

Vietnam’s housing price index is more than 20 times higher than the average income of society, making it difficult for many households and individuals to buy houses. (Illustration image – Photo: Investment Newspaper)

“The virtual factors happened not only in the Hanoi market, but also in many other markets. Individual investors are considering whether to enter or not, so in reality we have seen a level off. Stopped because people can’t buy at such value, in such infrastructure development conditions,” commented Ms. Do Thu Hang, Senior Director, Research and Consulting Division, Savills Hanoi.

“The surfers will be stuck, you do business when you win and sometimes you lose, you don’t always calculate right. If you calculate wrong, you have to suffer”, Mr. Ngo The Vinh, Hanoi, shared shall.

Businesses shared that the main reason for the high house prices is due to legal problems, time consuming and costly.

According to the Ministry of Construction, in the first quarter of 2022, there were only 39 licensed projects, creating a long-term scarcity.

Not to mention, many opinions are concerned that if banks tighten credit to real estate, causing many businesses not to have enough resources to complete and put the project into operation, it will make the new supply even more expensive. jam.

“The supply is so small, the price must increase, it is impossible to force the investor to sell it cheaply. Before there were 5 people interested, now 10-12 people, so they have to increase to maximize profits. Not to mention, the price of materials Whether or not everything is up,” said Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn.

Many people are startled when, according to information from market research units, in Ho Chi Minh City, the average selling price of apartments in the whole market has reached 75 million VND/m2.².

In Hanoi, housing prices in some areas far from the center have reached 150-300 million VND/m²only for a short time.

Experts also said that unreasonably high real estate prices have become a worry not only for anyone.

Proposing solutions to “cool down” housing prices

Why has unreasonably high real estate prices become a worry not only for anyone? Real estate is related to many other professions. If house prices increase, it may affect production costs of related industries (such as retail, industrial production…). Any solution to cool down house prices? The reporter asked this question to the representative of the Ministry of Construction at the discussion session “Cash flow trends”, in the Workshop “Digital communication promotes economic recovery” organized by Vietnam Television on 24/24. 5.

A representative of the Ministry of Construction said that in order to reduce house prices, it is necessary to increase the supply of houses for low-income people. To do this, many solutions are needed, the first is to propose policy amendments to encourage and promote social housing, especially in big cities.

For 13 consecutive quarters, house prices have been on an upward trend and have shown no sign of stopping. (Illustration image – Photo: Investment Newspaper)

“It is necessary to remove legal procedures. For example, in Ho Chi Minh City, after being removed, in just one month, up to 5 projects were started, including 4 social housing projects and 1 project. Besides, not only the Ministry of Construction, it is necessary to have the participation of ministries and branches because real estate is a general economic sector, such as the Ministry of Natural Resources and Environment, the State Bank. .. to focus on projects that can be deployed quickly and delivered quickly,” said Mr. Nguyen Manh Khoi, Deputy Director of the Housing and Real Estate Market Management Department, Ministry of Construction.

Currently, in the socio-economic recovery program for the period 2022 – 2023, there is a package of VND 15,000 billion in preferential loans for individuals and households to rent and buy houses through the Bank for Social Policies. Enterprises deploying worker housing and social housing will receive 2% commercial loan interest support. However, businesses said, the disbursement process needs to be accelerated, avoiding the fact that capital is available, but the money is slow to reach people in need.

“Which project, when accessing capital with progress and bringing apartments to residents as soon as possible, should give priority to disbursement,” said Pham Tien Dung, Chairman of the Board of Directors of Cat Tuong Joint Stock Company.

Real estate businesses also believe that it is necessary to properly recognize the role of real estate in the economy to open up capital for this market, especially with reputable investors and quality projects. , ensuring progress, good liquidity, bringing a lot of value.

“The first is to access capital, the second is that the administrative procedures for project investment must be faster. Because when the investment procedure is long, the cost of capital increases a lot. When the cost of capital increases a lot, the house price cannot be reached. can be reduced,” said Mr. Hoang Lien Son, General Director of Alpha Real Estate Brokerage and Investment Joint Stock Company.

Records from the market show that, in the face of high anchored housing prices and scarce supply, current customers who are looking for real housing in this period are even more carefully scrutinized and selected.

Records from exchanges show that buyers tend to choose branded projects, coming from reputable investors, to minimize risks. Those are “eye-seeing” projects, with well-built infrastructure. These are also products that are less susceptible to fluctuations from the market, the value often increases sustainably in the future.

In fact, people’s housing needs are very large. Projects aimed at real buyers, with good infrastructure, although more expensive, still have a good number of transactions over time.

A representative of the Ministry of Construction said that the removal of difficulties in procedures and legality is being actively promoted by the Ministry and some localities, in order to contribute to increasing supply to the market, limiting the situation of oversupply and demand. balance as it is now, which will partly help cool down house prices. However, this cannot be a day one, day two story. Like the representative of the Ministry of Construction, the cooling of house prices requires the participation of many relevant authorities.

According to VTV