It is forecasted that the real estate market will continue to grow steadily in the second quarter of 2021

Minh Hoàng
April 23, 2021

(VCP) – There is a land fever situation with unbelievable “waves” in some localities across the country; segments of houses, land plots, and condominiums still maintained steady growth; Real estate investment is still the channel with the most effective prospects … Those are the remarkable highlights of the market in the first quarter of 2021 compiled and evaluated recently by the Real Estate Brokerage Association.

– A general assessment of the advantages and disadvantages in the early months of 2021, the report of the Vietnam Real Estate Brokerage Association shows that the real estate market in 2021 is receiving more development impulses than 2020 from quick structural adjustment according to the epidemic situation; expanding the application of technology into sales. The year 2021 is also the first year to implement the 10-year Socio-Economic Development Strategy (2021-2030) and the 5-year Socio-Economic Development Plan (2021-2025). Moreover, the lowest interest rate in the past 15 years, so that families and young people will be more favorable to buy a house, or invest in real estate investment in 2021 to be expanded through enforcement. New regulations to be enacted in 2020.

– However, there are still difficulties when the market still maintains an imbalance in supply and demand for residential real estate for low and middle income people. The resort real estate segment was still heavily damaged by the COVID-19 outbreak; while the segments of offices, land plots, and apartments are less affected … Notably, the legal issue is still a bottleneck that requires the entry of the entire political system to gradually overcome and remove difficulties.

With the fierce participation of the authorities and authorities, the virtual land fever will be reduced

Appeared “wave” of land fever

– Immediately after the 2021 Tan Suu Lunar New Year holiday, the phenomenon of rising land prices appeared in many localities, the increase in land prices created unbelievable “waves” of land fever. There is even an investment phenomenon in spite of the law. According to records from localities, land was boiling everywhere, prices increased rapidly, an average of 10% increase after 1 month. Locally some places increased 2-3 times in just 1-2 months. In many places, people quit business and production to invest in land. Bank deposits are also withdrawn for investment. In many localities, there is a phenomenon of spreading untrue news about project planning and development. Even taking advantage of the direction of state leaders, creating fake documents to spread news, create waves. This has a very negative impact on the interests of investors who lack knowledge and experience.

– In addition, there is a phenomenon of land for sale not in accordance with the law such as: forest land, field land, garden …. appear regularly in the market. Many storks regularly gather, gather in these areas, create excitement, release a lot of information without basis, pushing prices up hour by hour, day by day to entice investors in. Regarding this content, the Brokerage Association affirmed that this is not a professional brokerage force operating at professional and prestigious real estate trading floors.

– Facing this situation, by the end of the first quarter of 2021, the authorities of some localities have strongly participated in controlling illegal buying and selling activities. At the same time, it is recommended that people be alert to the false rumors, “create waves” that cause land fever for profit.

– Explaining this current situation, Mr. Nguyen Van Dinh, Vice President and General Secretary of the Vietnam Real Estate Brokerage Association acknowledged that it was because the land price bracket was adjusted by local authorities to increase by 15-20. %. Demand for accommodation is still very strong across the market, but the approval of investment in real estate projects, creating a supply source has yet to show positive signals. Therefore, the supply in the market has not improved, is still lacking. Especially affordable housing projects, social housing and land projects. The demand for investment and money to be deposited in land increased sharply and suddenly due to inefficient investment in other economic sectors due to epidemics. Bank interest rate dropped deeply and the short-term investment in stocks and gold has made big profit, so many investors quickly took profits and kept them with land.

– Obviously, the increase in hot and fever land prices is causing some unnecessary consequences when attracting resources of national investors into a spiral of land price increases, reducing investment resources for production development. in many other sectors and fields of the country. Many types of resources on the land have been violated, changing functions not in accordance with the law. This wastes resources, affects economic development, and even destabilizes the locality in those areas. Obstructing the call for, attracting formal investment in localities because the increase in land prices leads to a series of other costs, especially the cost of compensation for site clearance … means economic development. local economy where there is land fever is unlikely to happen. If the economy does not develop, the land price will plummet again, those who invest in land who have not sold it in time will suffer heavy losses, especially for those who use credit leverage who have pledged their own assets. In addition, it is likely to increase the housing development costs, making it harder for the implementation of the Government’s policies to develop affordable housing and social housing. At the same time, it also creates pressure to increase housing prices in the context that some big markets such as Hanoi, Da Nang, Nha Trang … are also facing many difficulties in selling apartment products. Not only that, it can destabilize the national real estate market in general and hot regions in particular, affect the sustainable development of Vietnam’s real estate market and implement policies. State housing development.

– Stemming from clearly grasping the trend and having a lot of actual transaction data, the Vietnam Real Estate Brokerage Association recommends that local governments continue to drastically control all use activities. use land, carry out investment projects, transact land, … ensure compliance with the law. It is necessary to associate the responsibility of local leaders with the illegal sale and purchase of agricultural land, non-agricultural land, residential land to lead to virtual land fever. Strengthen the management of participants in the chain of listing, offering, and organizing transactions in the locality. Provide full information on economic development policies, planning and land use plans in the area. Timely detect and handle false news, affecting the market, especially construction news that causes land fever and instability in the locality. The State needs to adjust the law in the direction of digitizing the planning, real estate products people can conveniently look up information. At the same time, the management of the Real Estate Exchange and Brokerage is stricter and more effective. Strengthen to remove difficulties for businesses, promote project development approval to create supply sources for the market.

The resort real estate segment promises to be more prosperous, in the photo is a home-farmstay in Moc Chau, Son La.

It is forecasted that the national stock source will continue to increase in the second quarter of 2021

– According to the Vietnam Real Estate Brokerage Association, the country’s supply of goods will increase compared to the first quarter of 2020. Specifically, Hanoi is expected to have 6,000-7,000 products with a variety of segments to offer to the market. In which, the North and West of Hanoi will account for the largest proportion. TP. HCM is expected to provide about 8,000 – 10,000 products to the market. Promises a better quality market for the business and real estate brokerage.

– Mr. Nguyen Manh Ha, Chairman of Vietnam Real Estate Brokerage Association emphasized, the demand for apartment segment in Hanoi and Ho Chi Minh City. Ho Chi Minh still accounts for a large proportion. The mid-end segment of the 2-bedroom apartment continues to be traded the most. Ground land is still the product most interested by investors in localities outside Hanoi and Ho Chi Minh City. However, after a period of fever, speculators will leave the market, the demand for investment will drop sharply.

– Apartment prices in Hanoi and TP. Ho Chi Minh there will be kept intact. It is expected that new products at this stage can be built at a more suitable selling price. With the participation of the local government, the land price will be controlled and will not increase compared to the first quarter. Even, some areas will appear to reduce prices, cut losses.

– According to Mr. Ha, with many large-scale tourism real estate projects, diversified services, high quality, many majestic tourist cities are completed and put into operation, will surely create activities. force to promote the efficiency of the tourism economy for Vietnam, creating a strong attraction for investors to return to the tourism real estate market. Notably, projects that are interested by investors such as Sonasea Van Don, GrandWorld, NovaWorld, … will have better transactions.

– In the field of industrial real estate, the demand for this type of real estate domestically will continue to increase. Many new industrial zones continue to participate in the real estate market in Vietnam. There will be many new industrial zone infrastructure development projects approved. Many logicalstic projects serving industrial zones will also be promoted. The rental price of warehouse and factory premises continued to be stable.

– Space leasing activities will continue on the recovery momentum. It is recommended that landlords should not increase rents, even support to sustainably restore the health of commercial businesses.

Source: LE ANH

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