According to VARs' report, from the beginning of 2022 to the end of the first quarter of 2023, the market has always been in a state of "thirst" for supply, especially affordable housing supply, suitable for the financial capacity of the majority of people.
Mr. Nguyen Van Dinh, Chairman of VARs, commented: "Poor, unattractive, and lacking" are the exact words to describe the current supply situation in recent times.
Real estate is still in a difficult period. (Photo: DT)
Specifically, in 2022, the supply to the market will reach about 48,500 products, just over 20% of the supply in 2018 (the year before the COVID-19 pandemic). The supply structure is mainly high-end, high-value products.
In the first quarter of 2023, the supply to the market reached about 25,000 products, mainly inventory from previously launched projects.
Not only has supply decreased, demand has also decreased. It is rare for the real estate market to be in a state of lack of customers. Mr. Dinh analyzed that there are a number of factors leading to this phenomenon.
For example, poor products, mostly from old projects. Not attractive enough to customers. High deposit interest rates, attractive, attracting customers' idle money into the banking channel.
In addition, customers' confidence in the real estate market is decreasing, there is difficulty in borrowing capital and a large number of customers are having financial difficulties due to the general economic situation.
The Chairman of VARs said that the real estate market has shown signs of "weakening" since the beginning of 2022. This situation has continued to the present time.
“Lack of suitable supply combined with weak cash flow and reduced confidence will cause transaction volume in 2022 and the first quarter of 2023 to trend downward,” said Mr. Dinh.
Of which, the overall absorption rate of the entire market in 2022 reached about 39%, equivalent to 19,000 transactions, only 17% compared to the transaction volume in 2018.
Similarly, the overall absorption rate of the entire market in the first quarter of 2023 reached only about 11%, equivalent to more than 2,700 transactions, down more than 50% compared to the same period in 2022.
Some opinions say that the real estate market will recover in the second half of the second quarter of 2023, thanks to the solutions to remove difficulties issued by the Government. In addition, commercial banks have also reduced loan interest rates, which is also expected to become a factor supporting the market.
However, up to now, in June 2023, the market is still quite quiet, trading volume is still low, partly because there are no suitable products to supply to the market.
Talking to reporters of the Journalist and Public Opinion Newspaper, Mr. Nguyen Trung Tuan, a real estate expert, said: The time for real estate "surfing" is over.
“Currently, if we want the real estate market to “heat up”, we need to have enough supply to supply the market. This supply must be products that the market needs, which are affordable apartments and project land,” said Mr. Tuan.
However, in the context of very few new projects being approved and major investors running out of money, it is clearly very difficult for the market to recover.
“It is very difficult to expect the market to recover this year, at least 1-2 years from now, when new projects are built, then the real estate market will have momentum,” Mr. Tuan shared.
Source
Comment (0)