According to the assessment of Housing and Real Estate Market Management Agency under Ministry of Construction, in September, 2017, the price of real estate almost experiences no change. The amount of successful transactions decreased significantly compared to previous month.
In particular, there were about 1,200 successful transactions in Hanoi, down 11%; 1,300 successful transactions in Ho Chi Minh City, down 7% compared to August 2017.
The influence of the lunar July
Analyzing the cause of the decline of the market, Housing and Real Estate Market Management Agency said that due to the period that the market is affected by the common thought of avoiding buying house in lunar July. In addition, developers are deploying new projects to prepare for the year-end, so there has not any new projects offered for sale during this time.
In Hanoi, the supply of the market still comes from the projects that have been implemented and offered for sale from the previous period. It is highlighted that the supply of apartments still focused mainly on medium and high-end segment, lack of supply of affordable apartments, social housing. Some projects are attracted a lot of interest such as: An Binh City – Pham Van Dong (Bac Tu Liem District), Imperia Garden Nguyen Huy Tuong (Thanh Xuan District), Sunshire Palace (Hoang Mai District) …
From the beginning of the year up to now, there has very few affordable housing projects and social housing have been commenced construction because the social housing development support fund under Decree 100/CP of the Government on development and management of social housing has not yet been implemented. Only a number of social housing projects commenced since the beginning of the year which are continued to implement are Kien Hung (Ha Dong District) and Tam Trinh (Hoang Mai District).
In Ho Chi Minh City, the successful transactions volume in September also decreased, but decreased more slightly than Hanoi. The major successful transaction is in the luxury apartment segment with low construction density, high green space ratio, favorable location in the central area such as: Vinhomes Golden River project (District 1), Ha Do Sentrosa (District 10), Elite Park (Binh Thanh District).
Small and medium-size housing projects costing at approximately VND1 billion attracted the market a lot, but the supply was limited. Some projects implemented in the previous phase have large transaction volume such as Richmond City (Binh Thanh District), Metro Tham Tham Luong (District 2), Richstar (Tan Phu District).
In addition, the land market, townhouses, villas in District 2, District 9, where have good infrastructure are also products wsith good trading on the market.
Prices are not fluctuated much
In recent months, in Hanoi, with many middle- and high-end apartment projects to be opened for sale, the big supply has led many projects to drop price slightly (about 1%) on the secondary market. However, for the primary market, the investor does not lower the price but competes by different forms such as furniture packages donation, discount for buyers, free of charge services. The price of townhouses, villas does not experience much fluctuation, the main transactions are still in secondary transactions due to the supply of this product is not much.
Similarly, in Ho Chi Minh City, apartment prices have not fluctuated. The main reason is due to the steady amount of transactions, the construction progress of the projects to be ensured and flexible and prolonged payment policies of the investor.
In the villa segment, townhouses and land, because new supply is not much, the transaction volume in recent years has remained stable leading to unchanging selling prices, not happen price decrease phenomenon.
According to statistics of the Housing and Real Estate Market Management Agency, as of September 20, the total value of real estate inventory is about 26,294 billion, down 48.33% compared to December 2015; down 15.24% compared to December 2016 and decreased 450 billion compared to August 20, 2017. Inventory of apartments: 2,963 units, equivalent to 4,263 billion dong; Inventory of low-rise buildings: 3,181 units, equivalent to 7,067 billion dong; Inventory of residential land: 3,142,861 m2, equivalent to 12,572 billion dong; Inventory of commercial land: 607,471 m2, equivalent to 2.392 billion dong.
If calculated in Hanoi alone, the total inventory of real estate is about 5,348 billion, down 20.72% compared to December 2015; decrease 4.33% compared to December 2016; down 29 billion compared to last August. In Ho Chi Minh City, the inventory was about 4,831 billion dong, down 52.20% compared to December 2015; down 16.72% compared to December 2016; down 82 billion compared to August 20, 2017.
Therefore, inventories continue to decline, but the momentum is gradually slowing down.
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