DNVN - According to Savills Vietnam, housing supply is on a downward trend across all segments. This decline is due to the impact of high deposit interest rates, low consumer confidence and strong anti-corruption efforts.
Savills Vietnam said that housing supply is decreasing across all segments. However, it is not entirely correct to assert that there are too many high-end products on the market.
The decline in supply in all segments is due to the impact of deposit interest rates, low consumer confidence, short-term administrative delays... In general, liquidity is low and the primary housing market is paralyzed.
In both major cities, the natural demand for homes is around 50,000 a year. This is the result of immigration, adult homelessness and a fall in the average household size. This has not been met for some time, leading to pent-up demand.
However, in the next two years, Ho Chi Minh City will have more high-end products as well as affordable housing supply. In Hanoi, the affordable housing segment will still be popular.
In particular, with government spending on infrastructure accounting for 6% of GDP and the revised Land Law, infrastructure development will be accelerated. It will help connect suburban areas with the city center, creating more efficient convenience for residents.
“Infrastructure development brings suburban areas closer to the city center, reducing travel times. This is most clearly seen with the model of urban development linked to public transportation (TODs).
Developing to the suburbs helps investors access cheaper land, which can then be used to develop more affordable housing, due to lower land costs,” said Ms. Do Thi Thu Giang, Director of Savills Vietnam Consulting Services.
According to Mr. Troy Griffiths - Deputy Managing Director of Savills Vietnam, currently, in terms of terrain, Hanoi and Ho Chi Minh City do not have clear separations between adjacent urban areas. Neighboring provinces are being pulled closer to the big cities, helping these cities continue to expand.
With the provision of infrastructure, travel times are reduced, making it easier for suburban areas to reach the city centres. This can lead to more affordable housing supply as developers have access to cheaper land.
“The prices in the surrounding provinces are significantly lower and more affordable than the central cities. Binh Duong and Bac Ninh are clear examples of this, both with average prices of around $1,500 per square meter for housing (apartments), which is affordable,” said Troy Griffiths.
Ha Anh
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