Demand for real estate sales slowed down due to Typhoon Yagi?

According to online data from Batdongsan.com.vn, both search volume and number of real estate listings decreased in September 2024. In particular, the number of posts decreased slightly to 8% compared to June, and the number of searches also decreased significantly to 16%.

These developments are believed to be due to the impact of the storm Yagi that occurred in the first half of September and affected the search behavior of home buyers and property investors. However, both interest and postings began to recover from the end of September.

Compared to the same period in 2023, searches and postings increased significantly in the first nine months of 2024. In particular, search volume increased by 23% and the number of posts increased by 10%.

illustration. (Source: ST)

The real estate sales market showed a decline in both searches and postings. Specifically, while private homes and townhouses saw the sharpest search declines in August, at 7% and 8%, land and apartments were the two types with the biggest declines, at 9% and 16%, respectively, in August 2024. Declines were seen in all categories except private homes, where the number of listings increased slightly by 1%.

The rental property market began to gain momentum last year, with both rental searches and rental postings down significantly compared to August. Specifically, rental searches decreased by 22% and rental listings decreased by 7%. Last month. Among these, demand for motels and rental housing decreased the most, up to 8% compared to March to April, which was partly due to the impact of Typhoon Yagi and the market going through the peak season for students looking for housing.

Boarding houses and motels, as well as other types of rentals, have seen a significant decline in interest. Apartment rents fell 19%. Rental costs for private homes and offices are reduced by 15%. Rental homes on the street are down 12%. Warehouse rent showed the smallest decrease at 7%.

In the market, both search volume and posts recorded a sharp decline compared to March 8, 2024. Declines occurred in all types. In particular, in the sales market, search volume for land and apartments decreased the most, at 27% and 24%, respectively. The number of these two types of listings also decreased by 7% and 8%, respectively, which is a fairly sharp decline from the beginning of the year.

The decline in street houses, private houses, and villas decreased compared to the previous month, but still remained at a high level of 17% and 12%.

A closer look at apartment types in Hanoi shows a decline in interest across all segments, with the affordable segment seeing the biggest decline at 25%, with the luxury and mid-range segments both down 18%.

Hanoi apartment sales prices are differentiated, with the mid- to low-priced segment continuing to rise slightly by 2-5% (average 469,000/m2, 286,000/m2), while the high-end segment fell slightly by 1%. % (from 75,200,000/m2 to 74,600,000/m2).

Hanoi’s rental market passed its peak in August and both searches and rental postings began to decline sharply. Among them, boarding houses and rental rooms decreased the most, up to 53%. Searches for rental apartments also decreased by 23%. Rental housing listings decreased the most at 37%, followed by townhouses at 28%.

Looking at the data and analysis above, it can be seen that the real estate market in September 2024 continued to decrease in both search volume and sales and rental listings compared to August, and the main reason for this was the typhoon that affected the search behavior of home buyers and renters. It’s crazy.

Boarding house and motel rooms in particular have seen a sharp decline in search demand, mainly due to the peak student season. “The bright spot is that new supply in the market is expected to become more interesting between now and the end of the year, which will help improve market liquidity as buyers are given more choices,” said a report by Batdongsan.com.vn.

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