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In the first months of the year, some localities still have local land fever due to the planning of infrastructure. The Ministry of Construction also pointed out the backlogs that cause real estate prices to constantly increase.
Factors that drive real estate
According to the Vietnam Real Estate Market Report for the first quarter of 2022 of the Vietnam Association of Realtors (VARS), while the business and service sectors generally face many risks, especially after unexpected geopolitical events, Vietnamese real estate is still a market that attracts strong cash flow.
Specifically, in the first quarter, real estate has risen to the no. 2 position in terms of attracting foreign direct investment, reaching nearly 600 million USD (including 2021 real estate ranked 3rd). At the same time, the value of M&A (merger and acquisition) of real estate in the first quarter of 2022 was the highest in 5 years (according to cushman & Wakefield's report on the investment capital market in the first quarter of 2022).
Explaining the relatively positive developments in attracting cash flow of the real estate market in the first quarter of 2022, the VARS report said that it was a convergence of four factors: improving infrastructure, promoting public investment, implementing support packages and the economy maintaining the growth rate.
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Vietnam's infrastructure system is being improved, especially in big cities such as Ho Chi Minh City. HO CHI MINH CITY, Hanoi and neighboring provinces and cities.
Highways as well as connecting roads, airports ... It's creating a new look for the country. In real estate value structure, infrastructure plays a significant role, in addition to the intrinsic value of that property.
Second, the promotion of public investment is expected to boost the economy in general, the real estate market in particular. Accordingly, the report of the Ministry of Transport in the first quarter of 2022 alone disbursed nearly VND 7,500 billion for important infrastructure projects across the country.
In the whole year 2022, it is expected to disburse about VND 50.3 trillion, concentrate resources, direct drastically to accelerate the progress of key infrastructure projects, strengthen regional, regional and international connectivity, especially important transport infrastructure works such as the project to build some sections of highways on the North - South East line. period 2017 - 2020; My Thuan - Can Tho expressway project; Long Thanh International Airport; soon put into operation a number of urban railway lines in Hanoi and Ho Chi Minh City. HCM.
Thirdly, the support package of nearly VND 350,000 billion of which nearly VND 114,000 billion is for infrastructure projects, VND 110,000 billion for preferential policies for enterprises will create a synergy to help the economy recover soon, improve consumer purchasing power, thereby promoting the real estate market to develop sustainably.
According to Vars, Vietnam is currently considered as a country that maintains a good growth rate, stable political and social situation for a long time, creating a significant competitiveness of the economy. Foreign direct investment, including the real estate sector, has grown steadily in recent years is a clear demonstration.
Specifically, Vietnam's real estate market is currently considered to be dynamic and has the most development dynamics in Asia when maintaining an average growth rate of about 15% per year.
In addition, real estate is also expected to continue to maintain a very positive outlook in the next 20 years due to the low level of urbanization and strong progress, the economy maintains a high growth rate, basic infrastructure has a lot of room for growth.
There are many factors.
Mr. Nguyen Manh Ha, Standing Vice President of Vietnam Real Estate Association (VNREA) said that the "phase deviation" of supply and demand caused the real estate market to develop unbalanced.
Meanwhile, with the current situation, to pull down house prices is very difficult, social housing supply drips, a series of projects are "projected" due to problems, congestion of administrative procedures. The increase in house prices is expected to seriously affect the National Housing Development Strategy, with the goal that by 2025, the area of housing per capita nationwide strives to reach about 27 m2 of floor per person, of which the area of housing per capita in urban areas reaches 28 m2 of floor per person and rural areas reach 26 m2. floor per person.
From a different perspective, TS. Le Xuan Nghia, a member of the National Monetary and Financial Policy Advisory Council, said that the increase in house prices is also partly due to many businesses collecting large amounts of land to develop the project, but in fact only "do the rules" for the purpose of "keeping" the land waiting for prices to rise, while real developers lack land, there is a severe shortage of projects.
The Ministry of Construction also pointed out the problems that still exist. In particular, the operation of real estate exchanges has not ensured the good management of real estate transactions and prevention of money laundering in the real estate sector. The real estate brokerage business is not well controlled. There is a phenomenon of real estate exchanges colluding with each other to "hug", make prices, create waves, blow prices causing virtual fever to eat differences, disturbing the market.
In some localities, the situation of land use rights auctions has abnormal manifestations, high auctions and piles have a negative impact on the real estate market such as: creating high land prices, affecting the increase in the price of real estate, neighboring houses compared to the actual market. This affects the environment calling for investment and the recovery, compensation and implementation of projects of localities.
By Nhịp sống kinh tế