Expert: Apartment prices are getting higher and higher due to the support of speculators

Apartment transaction volume decreased compared to previous quarter

According to the real estate market report of the Vietnam Association of Realtors (VARS), in the third quarter, the market recorded a supply of more than 22,400 products offered for sale, with 14,750 newly launched products, down 25% compared to the previous quarter.

The entire market recorded about 10,400 successful transactions in the third quarter, down 25% compared to the previous quarter but up 80% compared to the same period in 2023.

In the past 9 months, the market has recorded nearly 38,800 new products offered for sale. Supply still recorded strong differentiation with 70% of new supply coming from the apartment segment.

Of which, apartment products with selling prices of over 50 million VND/m2 or more dominate the market. The market is almost completely devoid of affordable commercial apartments.

Expert: Apartment prices are getting higher and higher due to the support of some speculative groups

Ms. Pham Thi Mien - Deputy Director of the Vietnam Real Estate Market Research and Evaluation Institute - said that the residential real estate market has begun to show signs of "heating up".

The land auction story is "hotter" than ever with auctions held "overnight", recording hundreds, even thousands of people waiting to compete for a spot. The winning price is also a record high, equal to project land with well-invested infrastructure.

An apartment building in Hanoi (Photo: Tran Khang).

The heat of the market is also led by the apartment segment, with prices continuously setting new high levels, in both the primary and secondary markets. The high demand causes thousands of apartment owners to regularly receive calls asking to sell their houses.

However, in addition to the results from actual supply and demand, the market has also shown signs of "heating up". This situation is reflected in land speculation, pushing up housing prices, and the emergence of non-transparent real estate transactions. Many small investors participate in the market for the purpose of surfing, causing real estate prices to be pushed up unreasonably.

"Signs of heat generation are also shown in the apartment segment with the price level of transferred apartments increasingly high, due to the support of some speculative groups," Ms. Mien emphasized.

Speaking to Dan Tri reporter, Mr. Nguyen Van Dinh - Chairman of Vietnam Association of Realtors (VARS) - said that the increase in apartment prices in Hanoi due to scarcity is an effect of the law of supply and demand. Although the increase in prices shows signs of impact, creating confusing information from speculators creating virtual supply and demand to push up prices in the resale market, in reality, it is difficult to identify and handle speculative behavior and inflate apartment prices.

In the context of "congested" supply, individuals and businesses with goods will have an advantage in raising prices. It is inevitable that sellers will raise prices when apartments or any goods are scarce on the market. He said that the price of apartments in Hanoi will have an adjustment point but not much.

Previously, the Ministry of Construction also said that some speculative groups, investors and individuals operating in real estate brokerage disrupted market information to "inflate prices", "create virtual prices" and took advantage of people's lack of knowledge to manipulate psychology, attracting investment following the crowd mentality for profit.

Regarding the apartment segment, Mr. Le Dinh Chung - real estate expert - said that Hanoi apartment prices are in the peak stage. Those who want to invest should consider carefully before "putting money" because of the high risk.

Explaining the reason for the continuous increase in apartment prices in Hanoi in recent times, Mr. Chung said that it was due to the extremely scarce supply. Meanwhile, the demand for housing among people increased. In addition, input costs for project development such as construction materials, labor, etc. all increased, causing apartment prices to increase.

He predicts that from now until the end of the year, the apartment market in Hanoi will not fluctuate much, and the short-term supply will not be able to increase again. Therefore, the selling price in the coming time will still be difficult to decrease.

Source: https://dantri.com.vn/bat-dong-san/chuyen-gia-gia-can-ho-ngay-cang-cao-do-su-tiep-tay-cua-nhom-dau-co-20241016015434714.htm