Commenting on recent apartment prices in Hanoi, Mr. Le Dinh Chung, General Director of SGO Homes, said that in terms of consumer demand, the trend of increasing real estate prices is inevitable. However, a sharp increase in prices in a very short time is unusual.
Mr. Chung stated that the main reason for the high real estate prices is that large investors monopolize the supply, leading to price increases. In addition, high investment costs, high demand while supply is scarce, causing investors to have higher expectations for profits, are also the reasons for the unusually high prices.
Sharing the same view, Ms. Nguyen Hoai An, Senior Director of CBRE Hanoi branch said: " This is almost the first time that Hanoi apartments have increased in price so quickly in such a short time. Over the past 10 years, Hanoi apartment prices have increased by an average of 5% per year. Even in the period 2009 - 2019, apartment prices fluctuated little, there were periods of price reduction and an average increase of only 2% per year. From 2022 until now, apartment prices in this city have just begun to increase rapidly ."
Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), also assessed that in the recent period, apartment prices in Hanoi have increased very abnormally, in the context of the economy, the market as well as people's incomes have not recovered. This phenomenon is most likely due to the impact of interest groups.
According to experts, the recent sharp increase in apartment prices in Hanoi is unusual. (Illustration: Minh Duc).
" House prices are rising but transactions are not happening. This could be a trick by an investment group with unclear intentions ," Mr. Dinh assessed.
According to him, these interest groups are able to carry out price-inflating tricks because the supply of apartments is actually problematic. In recent years, the market has not had any new projects approved for investment licenses. Projects on the market are mainly old projects and are bought and sold again. The supply is both lacking and of poor quality, the supply to the people, low-income people is very little, the product structure is not suitable.
Mr. Dinh said that this is not a good sign for the market, the high price increase has consequences such as people having difficulty accessing housing, increasing production investment costs, and genuine investors having difficulty accessing land resources. Therefore, the Government is also taking appropriate regulatory measures.
The market is not as hot as rumored?
Dr. Dinh The Hien - economic expert pointed out a reality, there is no such thing as a real estate market where buying only makes profit and not loss, only increases and not decreases.
" With the Vietnamese real estate market expanding in scale and becoming more market-oriented, the question is why is the real estate market currently so quiet, buying and selling is difficult, but real estate prices are still increasing? According to the law of the market economy, when an investment product increases in price, it shows that there is a lot of demand and willingness to buy, but why can't the seller sell or sell with great difficulty, and can't the bank foreclose? Investors need to ask themselves whether this price increase is really in line with the market or just local? ", Mr. Hien raised the issue.
According to Mr. Hien, if the real estate market is really increasing and continues to increase, it proves that the market is very strong, businesses in the industry do not worry about debt repayment, and do not need the State to support. At the same time, if buying a house to live in, buyers need to ask why they have to buy large projects far away, prices can be up to 70-80 million VND/m2 or more. While according to him, there are secondary apartments in the center with even cheaper prices.
" This shows that the real estate market is not as hot as rumored. Buyers with real housing needs can leisurely search for a place with a reasonable price ," Mr. Hien advised.
Expert Nguyen Minh Phong also said that currently, all entities in the market confirm that real estate prices are unreasonably high. However, Vietnam's legal corridor still has no official tool to prove that this price increase is unreasonable.
For timely management and regulation, Mr. Phong suggested that Vietnam should develop a set of housing price, land price and commercial real estate indexes to measure price fluctuations over time. This set of indexes, which is developed and used by many countries for macroeconomic analysis, not only reflects economic growth but also helps measure risks and support decision-making for people and businesses in the real estate sector.
In addition, Mr. Phong emphasized the need for a large, accurate database to ensure transparent market operations. Having a large enough data warehouse will help research the market effectively, thereby building the right regulatory mechanisms and policies, playing an important role in controlling real estate prices in addition to increasing supply.
According to the Hanoi real estate market report in the third quarter of Savills Vietnam, the primary price reached about 69 million VND/m2, up 6% quarter-on-quarter and 28% year-on-year.
The average secondary price reached VND51 million/m2, up 10% quarter-on-quarter and 41% year-on-year.
According to the report of the Ministry of Construction, apartment prices in Hanoi continue to increase in both new and old projects. Specifically, the average price of apartments in new projects has increased by about 4-6% per quarter and 22-25% per year. The selling price of old apartments has also increased, especially in some areas, increasing locally by about 35% to 40% depending on the location compared to the previous quarter.
Notably, there were times when apartment prices increased by hundreds of millions each month. Market data from PropertyGuru Vietnam Company showed that the apartment market in Hanoi from the beginning of the year until now has only had one "quiet period" in April and May, the rest of the year recorded an upward trend in selling prices, especially increasing in the last months of the year.
Source
Comment (0)