WHICH REAL ESTATE SEGMENT WILL GROW STRONGLY IN THE NEXT TIME?

Despite experiencing 2 years of complicated epidemics, dragging down the economy, real estate prices of many segments in the market. In which, townhouses and villas are in high demand, creating the prospect of strong price increases.

Apartment prices continue to increase

At the VRES Real Estate Conference 2021 organized by Batdongsan.com.vn, Ms. Duong Thuy Dung - Senior Director of CBRE outlined a full picture of the price fluctuations of some types of real estate. Worth mentioning, despite going through 2 years of complicated epidemics, dragging back the economy, real estate prices in many segments continued to increase in the market.

“The high demand for townhouses and villas has created a strong bullish outlook. Along with the growing infrastructure, the supply and prices of land-based real estate continue to increase in big cities such as Hanoi and Ho Chi Minh City, "emphasized Ms. Dung.

In Hanoi, the selling price of villas has increased by 13%, townhouses by 4%, and commercial townhouses by 3%. Meanwhile, in Ho Chi Minh City, villas increased by 3%, townhouses by 17%, and commercial townhouses by 6%.

Selling price of condotel Phu Quoc reaches nearly 4,000 USD/m2

The resort real estate market is the segment that has been heavily affected by the Covid-19 epidemic in the past 2 years. Accordingly, by the third quarter of 2021, Khanh Hoa leads the supply of condotels with nearly 14,000 condotel units launched into the market.

Notably, the primary selling price increased thanks to the new supply with good location and high quality. From 2020 to the third quarter of 2021, the primary selling price of condotels in Phu Quoc is nearly 4,000 USD/m2, in Khanh Hoa, Da Nang is nearly 2,500 USD/m2, Ba Ria - Vung Tau is nearly 2,000 USD/m2.

Regarding the supply of resort villas, Ba Ria Vung Tau, Binh Thuan and Phu Quoc are the leading markets in terms of the number of resort villas as of the third quarter of 2021. Notably, the selling price of resort villas increased even during the period affected by Covid-19, especially in secondary markets such as Phu Yen and Ba Ria-Vung Tau. In 2019, the price of resort villas in Phu Yen was only about 1,000 USD/m2, but from 2020 to now, the price has skyrocketed to nearly 3,000 USD/m2. In 2019, the price of resort villas in Ba Ria Vung Tau was about $2,500/m2, by the third quarter of 2021, the selling price was nearly $2,500/m2.

According to Ms. Dung, the residential real estate market for sale witnessed a decrease in supply due to the impact of social distancing measures in the third quarter of 2021. In the apartment segment, Hanoi recorded new supply coming from urban-scale projects. The market share of luxury apartments surpassed mid-end for the first time since 2014, accounting for 65% of the total market supply.

In the city. In Ho Chi Minh City, the new supply only recorded products in the high-end segment. Affordable apartments completely disappeared from the market from the first quarter of 2019. Limited supply makes the absorption rate of the market very high, especially in HCMC.

In Hanoi, the average selling rate of newly launched projects in the first quarter of 2019 and 2020 is only 41% and 42%, respectively, by the third quarter of 2021, this rate will reach 52%. . In the city. In Ho Chi Minh City, the average selling rate of newly launched projects in the first quarter of 2019 and 2020 is only 89% and 73%, respectively, by the third quarter of 2021, this rate will reach 82%.

Ms. Dung emphasized that the price of primary apartments will continue to increase in the future. Prices are expected to continue to increase due to rising land costs, escalating construction costs, many new products in the higher segment, stable demand and temporarily limited supply. Specifically, the selling price of primary apartments in Hanoi increased by 16%, the selling price of primary apartments in Ho Chi Minh City. HCM increased by 17%.

High demand for townhouses and villas creates the prospect of strong price increases

Meanwhile, the market for townhouses and villas recorded limited sales before the lockdown period. In Hanoi, the new supply in the third quarter of 2021 was only 440 units with the structure of 1% villas, 58% townhouses and 41% commercial townhouses. New supply in this segment in the third quarter of 2021 in Ho Chi Minh City. Ho Chi Minh City only has about a dozen apartments with a shopping cart of 100% of adjacent apartments.