Real estate prices ‘cooling off’

There is unlikely to be any large-scale “real estate fever” in 2022, and only in localities set to benefit from planning and infrastructure, according to a report from Batdongsan.com.vn on the real estate market in the first quarter of 2022.

Interest in real estate on the website increased during February in almost all categories, with an average rise in interest of 23 per cent seen compared to January. Ho Chi Minh City and Hanoi saw increases of 29 per cent and 22 per cent, respectively.

Of note, project land and land plots in many provinces saw interest rise sharply. The central highlands’ Lam Dong province, south-central Khanh Hoa province, and central Da Nang city posted the strongest increases, at 41 per cent, 35 per cent, and 32 per cent, respectively. Ho Chi Minh City and Hanoi saw increases of 18 per cent and 8 per cent.

Recognizing the rising demand for land plots, experts from Batdongsan.com.vn said that due to concerns about price slippage and inflation, the need to accumulate assets attached to land as a sheltered investment will increase this year. For landed real estate, land plots are more affordable than townhouses, villas or shophouses, so will attract medium-sized capital flows or higher.

The first quarter also recorded a large number of searches for apartments in Ho Chi Minh City and Hanoi, focusing mainly on the affordable segment.

Affordable apartments in the two cities saw an increase in searches of 36 per cent compared to January.

Apartment prices in Hanoi in February rose some 4.4 per cent compared to December. The price of affordable apartments in the capital grew 8 per cent in 2021, to about VND23.5 million ($1,023) per sq m. High-end apartment prices rose 5 per cent, to VND32.5 million ($1,414) per sq m, while luxury apartments increased 3 per cent, to VND45.5 million ($1,980) per sq m.

According to Batdongsan.com.vn, prices of oil, precious metals, and construction materials pushed up real estate prices in the first quarter of 2022 and they are expected to continue heading upwards into the future.