The real estate market in the third quarter of 2022 witnessed a marked decrease in supply, but demand was still high.
The Vietnam Real Estate Market Report in the third quarter of 2022 of the Vietnam Association of Realtors (VARS) shows that the supply of real estate is on a clear downward trend. The supply is mainly in the middle and high-end segments with prices that are not suitable for the majority of people with real housing needs.
The absorption rate in the third quarter of 2022 was only 33.5%, a sharp decrease compared to the first half of the year; transaction volume decreased by more than 50% compared to the same period last year. Real estate capital flow is difficult and interest rates increase, making investors hesitant in investment decisions. Real estate prices showed signs of slowing down, some projects had to use flexible sales policies, discounts, interest rate support, principal debt grace, loan commitments, buybacks...
VARS affirmed that, although the transaction situation has shown signs of decline, the real estate market has not fallen into a recession because interest and demand are still high.
Some positive developments in the market as cited by VARS include the phenomenon of land fever, the bubble almost no longer appearing, and speculative activity at this stage was almost eliminated.
The use of financial leverage to buy a house for investment must be calculated carefully, targeting products that serve real needs on the basis of carefully considering the surrounding macro and geopolitical variables, the market will have negative developments.
According to VARS, the policy of accelerating disbursement of public investment, in which the infrastructure project group accounts for a large proportion, will create many economic zones, tourism, urban areas, etc., leading to the demand for housing, resorts, services, offices... especially the industrial real estate segment in the trend of shifting industrial facilities of multinational corporations in the world.
Nguyen Van Dinh, Chairman of VARS, said that the market will enter a phase of rebalancing and continue to develop sustainably when the State regulates well policies and tools to regulate supply and demand of real estate such as: tax, credit, land, finance... or investment attraction.
Explaining the basic factors that create the foundation for the real estate market despite concerns about a global recession, according to Mr. Nguyen Van Dinh, Vietnams economy in the first 9 months of 2022 prospered in most areas. sectors and fields; GDP in 9 months of 2022 increased by 8.83% over the same period last year, the highest increase in a decade.
Meanwhile, export turnover, FDI disbursement, state budget revenue, the number of newly established enterprises and returning to operation ... all have positive results thanks to the Governments drastic and active implementation of the tasks. services and solutions for socio-economic recovery and development.
Source: vtc.vn
