A recent report by Nha Tot shows that the demand for apartments for sale nationwide in the fourth quarter of 2022 decreased by 11% compared to the second quarter of 2022. This decrease is the lowest among all types of real estate. This shows that for types related to real housing needs, the demand for searching is still maintained when the market is facing general difficulties.
Demand for apartments for sale nationwide in the fourth quarter of 2022 decreased by 11% compared to the second quarter of 2022 - Source: Ky Hoa
Demand for buying has decreased, demand for selling has increased, however, apartment prices have shown no signs of decline. Specifically, the average price in the fourth quarter of 2022 in Ho Chi Minh City reached 39.8 million VND/m2, up 2.7% over the same period last year.
According to this unit, although not directly reducing prices, many investors of new projects actively offer discounts to home buyers. When paying 95% of the apartment value early, home buyers can receive a discount of about 20-30%, even up to 40% in many projects.
In addition, if payment is made on time, buyers will still receive a 5-10% discount on the original price. In addition, many investors also offer vouchers, gifts, and extend the period of preferential interest rates to attract buyers at the end of the year.
The Good House report added that, despite signs of a decline in the second half of 2022, housing prices in Vietnam are still very high compared to the average household income in Vietnam. With an average disposable income of VND191 million/year and an average house price of about VND5.5 billion/unit in Ho Chi Minh City, a household will need about 28.6 years to buy a house.
This rate is relatively low compared to crowded Asian cities such as Seoul, South Korea (30.7 years), Bangkok, Thailand (31 years) and Beijing, China (44 years). However, if compared to famous cities in Europe and America, Ho Chi Minh City has a very high housing price/average income ratio. Specifically, New Yorkers only need 9.9 years to buy a house with their disposable income, while Toronto only needs 13 years.
Associate Professor Dr. Dinh Trong Thinh, lecturer at the Academy of Finance, said that the real estate market is in need of restructuring. Because, in the past 3 years, real estate prices have continuously increased, even when the economy grew slowly due to the impact of the Covid-19 epidemic.
“The real estate market is not very liquid, so even though prices have increased sharply, transactions are still very low. In the context of capital shortage, technology real estate models and real estate investment funds will be a good direction for the market, helping investors with little capital to participate. These forms of investment have been applied in many countries around the world ,” Mr. Thinh said.
Mr. David Jackson, General Director of Colliers Vietnam Joint Stock Company, said that there should be clear and consistent interpretations of legal regulations related to real estate and real estate business activities so that investors can understand and comply. At the same time, it is necessary to consider opening up new investment channels, such as real estate trust funds, to help loosen capital bottlenecks.
"Because the development of the real estate sector will stimulate the growth of many other economic sectors. However, there needs to be a legal framework and tax regulations to ensure the effective operation of this investment fund," Mr. David Jackson emphasized.
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