According to SSI’s assessment, legal issues of real estate projects usually take many years to resolve and this situation continues in 2021. Accordingly, house prices still tend to increase.

According to SSI, the apartment is 60 million / m2, few people buy, HCMC house prices still increase 5-7% in 2021. (Photo: Nguyen Ngoc)

HCMC house prices increase at least 7% in the period 2020-2021

SSI’s latest real estate report shows that house prices in HCMC will increase 7-10% this year due to rising land or input project prices and limited supply. And house prices in Hanoi will increase lower, fluctuating 2-3%.

Particularly in the second half of 2020, new sales may be lower than the same period in 2019 due to the limited total supply.

According to SSI’s assessment, legal issues of real estate projects often take many years to resolve and this situation continues in 2021. Accordingly, housing prices in HCMC still tend to increase 5- 5. 7%.

For listed real estate businesses, the average pre-tax profit growth in 2020 will be about 10%. Some developers have expanded to neighboring urban centers and suburbs for development.

SSI’s report also pointed out that the township segment is being developed by developers and has been receiving a lot of attention from buyers recently.

Apartment over 60 million / m2 few buyers

On the other hand, SSI’s report also mentioned some changes in the structure of the real estate industry after COVID-19.

Specifically, high-end condominiums with average selling prices of over VND 60 million / m2 recorded a 30% decrease in transactions in the first 6 months of this year.

In addition, the apartments with high rents above 1,000 USD / unit / month are seriously affected by the epidemic. Average asking rents decreased by 20-25% due to many factors: Lack of demand from tenants, reduction in foreign tourists, cut-off spending for rent,

Average apartment rental yield decreased by 0.3-0.5 basis points compared to pre-translation rates. The yield in HCMC fluctuates 4.5-6.2%, while in Hanoi about 4-5.4% per year.

SSI’s survey results show that about 38-40% of people in the country still consider real estate as a safe investment channel. Home employment is not a factor that significantly affects the purchase of residential real estate.

The market’s growth momentum depends on the progress of infrastructure development in the context of low interest rates. In addition, legal low-rise real estate and transparent land use rights will also become attractive to home buyers, SSI forecasts.

Source: vietnambiz.vn – Translated by fintel.vn