Has the true property market ‘frozen’ due to the epidemic?

Buying and selling is tough, the market is quiet

Mr. Lengthy, an actual property dealer in Ben Cat space, Binh Duong, mentioned that about three months in the past, the variety of transactions he consulted decreased by 80-90% in comparison with the earlier months. The epidemic hinders journey, making it tough for purchasers to go to and study venture merchandise; It’s tough for traders to “launch” new items, making the provision out there extra scarce. A few of the land plots requested by prospects on the market additionally slowed down though there have been folks continuously searching earlier than.

DKRA Vietnam’s newest report in the marketplace in Ho Chi Minh Metropolis and neighboring provinces (Lengthy An, Dong Nai, Binh Duong, Ba Ria – Vung Tau) in July recorded many “low” factors in all segments. The land plot market didn’t document new provide opened on the market within the month. That is the primary time that Ho Chi Minh Metropolis and neighboring provinces lacked new provide within the land plot section, and the general buying energy of the entire market additionally decreased considerably.

The marketplace for villas/townhouses is equally bleak. Many localities similar to Ho Chi Minh Metropolis, Lengthy An, Ba Ria – Vung Tau wouldn’t have new provide. Many traders have to alter their gross sales plans, delay the product introduction to match the social distancing order.

Is the real estate market frozen because of the epidemic?  - Photo 1.

July statistics of DKRA Vietnam with villa/townhouse market.

With the condo market, the provision has recovered however remains to be a lot decrease than the identical interval final 12 months. The sophisticated epidemic and the applying of distancing directives put strain on the provision and consumption fee of recent tasks. Through which, Ho Chi Minh Metropolis solely had 2 new tasks on the market with 430 items, down 87% over the identical interval final 12 months; consumption decreased by 90%.

Is the real estate market frozen because of the epidemic?  - Photo 2.

Provide and consumption of residences in Ho Chi Minh Metropolis. Picture: DKRA Vietnam

Market will nonetheless be constructive

Mr. Nguyen Hoang, Director of DKRA Vietnam Analysis and Growth Division, mentioned that if the epidemic scenario persists, it should have an effect on the buying energy of the market. Whether or not consumers purchase to reside or to take a position, it should even be affected as a result of the supply of revenue is decreased, even damaged. At present, the market doesn’t have insurance policies to assist the curiosity payable for many who are shopping for actual property utilizing financial institution loans. Even folks with monetary potential are very cautious in deciding to purchase actual property.

Then again, the buying energy on the secondary market (shopping for and reselling) can also be very stagnant, the present sentiment is to look at and wait. Only some folks have sturdy monetary potential, they will select the precise merchandise and tasks for long-term funding. However this few can not symbolize the entire market.

Consultants of DKRA mentioned that actual property has all the time been the main funding channel in addition to different channels similar to securities. Assuming that the epidemic is managed and the social distancing order is eliminated, the market could also be lively within the final months of the 12 months. Though it’s unlikely to be as vibrant as in 2019 and earlier, the market may have constructive recoveries in comparison with the primary half of 2021 and 2020.

Mr. Le Hoang Chau, Chairman of Ho Chi Minh Metropolis Actual Property Affiliation (HoREA) additionally expressed confidence within the restoration of the market after the pandemic. For Mr. Chau, the present melancholy is barely non permanent, because of the affect of circumstances, a very powerful factor is that the market all the time has a requirement for housing. Subsequently, after the epidemic is managed, the market nonetheless develops effectively, there isn’t a “bubble” like within the interval 2007 – 2010 as a result of tax, fiscal, and planning insurance policies are effectively managed.

HoREA Chairman affirmed that it is vital that the authorized rules on land, the method of venture approval in addition to investor recognition, and many others., have to be accomplished, guaranteeing equity and creating favorable situations. for companies to have the chance to develop wholesome. He expressed his hope that within the close to future, the rules that trigger inadequacies and obstacles within the Regulation on Housing 2014 that hinder funding actions of enterprises shall be revised, contributing to creating new improvement momentum for the market. .

Kong Chiem