Dr. Nguyen Van Dinh, Vice President of the Vietnam Real Estate Association (VNREA), said that now is the time when the market is showing signs of recovery in both supply and demand.
However, due to the market's long-term imbalance between supply and demand due to legal and capital problems, real estate prices are quite high.
According to the report on housing and real estate market in the third quarter of 2024 of the Ministry of Construction, apartment prices in Hanoi continued to increase in both new and old projects, the price level of new projects increased by about 4 - 6% quarterly and 22 - 25% annually.
The Ministry of Construction said that the affordable apartment segment (with a selling price of less than VND25 million/m2) has almost no transactions and products for sale. Mid-range apartments (with a price of about VND25 million/m2 to less than VND50 million/m2) still account for a high proportion of transactions and supply.
Mr. Nguyen Van Dinh said that high housing prices are not a good sign, but on the contrary, will cause many consequences such as people with real housing needs will have more and more difficulty in buying a house.
In addition, the price increase will increase costs, especially production investment costs, making it difficult for genuine investors and real business people to access land resources. In addition, if they can access, input costs will increase, leading to an increase in other costs, affecting product prices.
From the investor's perspective, Ms. Nguyen Thi Van Khanh, Deputy General Director of Gamuda Land, said that when setting a high price level, no one benefits.
Currently, there are many factors affecting the price of real estate. The price level will be formed through input factors. There are many projects that are not approved for land use - one of the important input factors that make up the output price.
In addition, real estate laws, especially the new land price framework, also affect the formation of a new price level in the market. Therefore, those who want to buy a house need to be calm to evaluate the value, the price they buy must be appropriate. Because from the perspective of a home buyer, no one wants to buy when the market is at its peak.
Forecasting the real estate market in the coming time, Deputy General Director of Gamuda Land said that it will be difficult for the market to return to the level of 2018 - 2019, when the apartment supply reached 30,000 - 35,000 units (while the market in 2023 had about 5,000 units, 2024 could have about 7,000 units).
The market in the period of 2025 - 2026 will have a delay in recovery. Therefore, this person predicts that the supply in these two years will be higher than 2024, but will not be so high as to be redundant. In terms of price level, Ms. Khanh hopes that prices will be at a moderate level, more sustainable so that home buyers can keep up.
