Compression of the real estate market
Mr. Nguyen Quoc Anh, deputy general director of the Batdongsan.com.vn information site, said that the current market is like a spring compressed by the impact of the epidemic. Despite having gone through many outbreaks, the real estate market is still growing, and the number of new investors entering this market is increasing. Therefore, despite being under a lot of pressure, with the current demand, the market will bounce back when the epidemic is under control.
Especially in the first three months of 2021, the purchasing power of real estate across the country has increased by 37% compared to the same period in 2020, even the search interest is still higher than the period when the market peaked in 2018-2019. an increase of 378%. In the past 3 epidemics, right after the epidemic was controlled, the purchasing power in the market increased rapidly, the demand for housing, especially residential land and land plots increased unprecedentedly. In the context that real estate is still a particularly attractive investment channel, the demand is only temporarily compressed and will bounce back strongly when conditions are met.
Research from the world real estate market such as the US and Australia during the epidemic situation shows that, when the number of people being vaccinated increases, the real estate market also continues to develop. The market even achieved impressive double-digit growth.. When the spring is compressed for too long, it will bounce up quickly and strongly, which is also the nature of the real estate market
Highlights on the real estate market in recent times
Many legal documents, accompanied by effective new policies, a stable macro-economy and the government's push to disburse public investment are considered as positive factors. This creates favorable conditions for the real estate market from now to the end of 2021. Especially policy-related issues such as Decree 148/2020/ND-CP, Decree No. 25 2020/ND-CP, the revised laws that come into effect will help remove many obstacles in land procedures, creating leverage for the market to recover and develop
The Hanoi People's Committee has approved the red line demarcation of the road connecting Phap Van - Cau Gie with the 3rd belt at the scale of 1/500.
Real estate in the central region also recorded many positive news. On July 19, the People's Committee of Da Nang city said that it had just approved the list of lacnd fund with land use right valuation for the first phase of 2021. Continue to conduct the first auction of land use rights in 2021. conduct auction of land use rights 7 land plots in 2020 and the remaining 9 large land plots are approved for land use right auction in 2021
The mainland real estate segment in Ho Chi Minh City still maintains its growth momentum amid the covid 19 pandemic. The market report for the first 6 months of the year of Savills Vietnam shows that, despite many impacts from the epidemic, prices mainland real estate in the secondary market in Ho Chi Minh City had an impressive increase, about 13% over the same period last year.
Demand for real estate ownership in the market is still maintained. However, the epidemic situation has caused the trading volume to show signs of slowing down. The market is like a compressed spring and will bounce back strongly when conditions are right. In order to prepare for post-pandemic opportunities, real estate businesses need to be equipped with a good basic foundation, diversified product portfolio, and focus on the real needs of buyers to quickly catch up with growth. of the market.