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Real estate prices are at the top, cooling down may take place in mid-2023

Real estate prices soar

A villa of more than 400 square meters in Long Bien in 2018 was valued at 65 billion VND, by the beginning of 2022, the price of this villa was called by brokers to pay up to 140 billion VND. Or like the land plot in Soc Son, located close to the area where Ring Road 4 is expected to pass, with a price of up to 65 million VND/m2 (surveyed in February 2022), 5 times higher than in early 2021, equal to the price of a plot of land in the inner city of Hanoi, wide alley, passing cars.

In the provinces, land prices have not shown any sign of decreasing. Recorded in Tu Son city, on Trau Cau street, the shophouse recorded an average price of 14-20 billion VND, equivalent to a townhouse on Nguyen Huu Tho street (Hoang Mai, Hanoi).

Real estate prices are at the peak, the time to cool down may take place in the middle of 2023 - Photo 1.

Real estate prices are considered to be anchored at a high threshold.

“Real estate prices skyrocketed” – that’s the opinion of experts when it comes to land prices. The report of the Ministry of Construction on the real estate market also shows that, in the first quarter of 2022, the average real estate transaction price of the whole market is always in an uptrend.

A survey of this organization’s data recorded price fluctuations of some types of real estate in March and the first quarter of 2022 in 8 localities including Hanoi, Ho Chi Minh City, and Hanoi. Ho Chi Minh City, Da Nang, Hai Phong, Binh Duong, Dong Nai, Khanh Hoa, Ba Ria-Vung Tau. Accordingly, real estate prices increased quite high in many types.

According to statistics, in Hanoi, the price of apartments increased by 1.53%, individual houses increased by 2.24%, land for housing construction increased by 2.85%. Similarly, in Ho Chi Minh City, the percentages also increased by 2.48% respectively with the price of apartments and single-family houses increasing by 2% and land plots being more expensive by 3.6%.

According to Savills, in terms of villas and townhouses, since the third quarter of 2021, the primary selling price has continuously recorded the highest level ever.

Batdongsan.com’s residential land market report said that in the first quarter, many provinces in all three regions of the North – Central – South recorded an increase in the asking price of land plots on online markets.

According to this report, on online real estate markets in Hanoi, residential land prices in Chuong My district are 74% higher than in 2021, the highest increase in the North and the whole country. Other districts in Hanoi such as Dong Anh, Gia Lam and Quoc Oai recorded a 20-26% increase in the price of land plots.

Real estate prices are peaking

Mr. Tran Khanh Quang, a real estate expert, said that real estate prices are at the top. Compared to the 2009-2010 period, the current market is similar to the previous period in the phenomenon of high prices, but the temperature of the market is different.

Mr. Quang said that now, investors are smarter. They are not willing to buy in spite of all or fight each other to buy. They are cautious. Lessons from earlier led the State to intervene gradually instead of as before.

Meanwhile, Mr. Cao Minh Thanh, General Director of MLAND Pro, said that the current real estate market does not have a bubble or freeze like in the previous period. Because the market has become much more transparent, from information to products. Investors have also become much wiser.

According to Mr. Thanh, real estate products at this stage are more present, expressed through clear legislation and synchronous infrastructure. In particular, the increase in real estate prices is not due to a virtual fever, the psychology of investing in accordance with the majority like in 2010. Real estate prices in this period increase in value, due to the development of infrastructure and quality. good project.

Although the market fluctuates, the project products with real value are still well liquid. Unlike the period 2010-2011, most real estate projects are still on paper, not yet fully legal, have been launched into the market for transactions. At that time, the customer is buying a product formed in the future that has no existing value. So when the State tightened credit, the demand for real estate investment dropped sharply. Products with no existing value are difficult to liquidate.

At the current stage, if there is volatility, the worst case scenario is a stop loss. But the advantage with existing products and clear legality is that the freezing situation can take place locally or on some segments that certainly will not spread to the whole market. Another positive factor is that the State is controlling interest rates and inflation very well.

However, Mr. Thanh forecast, if real estate prices increase and high, to a certain period, prices will go down. The timeline for real estate prices to cool down could take place in mid-2023.

https://cafef.vn/gia-bat-dong-san-dang-o-dinh-moc-thoi-gian-ha-nhiet-co-the-dien-ra-vao-giua-nam-2023-20220531160343064. chn


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