(PLO) – VARS forecasts that in 2024, primary apartment selling prices will continue to increase by an average of about 3%-8%.
The Vietnam Association of Real Estate Brokers (VARS) forecasts the selling price in 2024 apartment Primary will continue to increase by an average of about 3%-8%. The main reason is that short-term supply has not yet been resolved.
“Scarcity of new supply makes the market uncompetitive, businesses with apartment projects open for sale at this stage are the “kings”. If there are no cash flow difficulties, investors will continue to keep prices high to maximize profits,” VARS said.
At the same time, constantly improving infrastructure will continue to push the price level even higher. Apartment prices are high not only because investors try to keep prices high but also because investment and construction costs increase due to increased prices of input materials, labor, and access to finance costs. Low interest rates and record high inflation in the past period are also factors contributing to the sharp increase in house prices.
Currently, the number of newly licensed commercial housing projects is very small and tends to continue to decline, especially in the affordable and mid-range segments. VARS research data shows that the number of affordable and mid-range apartments offered for sale has continuously decreased since 2019.
Specifically, the total number of affordable apartments opened for sale in 2022 is only 10% compared to 2019. The proportion of apartment supply in the affordable segment to the total supply of apartments opened for sale also decreased sharply, from 30%. in 2019 to 7% in 2022. During the period 2019-2022, the proportion of mid-range apartments also decreased to 54%, 46%, 34%, 27% respectively.
According to VARS, in order to restructure the segment and lower product prices, it is necessary to have the cooperation, contribution, unification of viewpoints, implementation methods, and coordination of many subjects, components, from the grassroots level. State management agencies to businesses and banks.
On the part of state management agencies, first of all, it is necessary to research plans to shorten investment and construction processes and administrative procedures; Consider options to support businesses in calculating land use fees and site clearance.
The State Bank needs to research and develop a credit program with preferential interest rates specifically for businesses investing and developing affordable housing and home buyers. In addition, there needs to be clear mechanisms and policies to support investors who want to restructure projects from high-end to affordable or social housing.
Real estate businesses need to proactively review their investment project portfolio and sell part or all of the project that is not suitable for their current resources. Enterprises should only focus capital on projects that are legally guaranteed, have feasible loan plans, can be completed early, and are easy to liquidate.
(PLO) – The Ministry of Construction said that apartment prices in Ho Chi Minh City and Hanoi increased by 0.2% and 0.36% respectively in the third quarter.
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