According to CBRE Vietnam, the market’s recovery will depend a lot on the speed of vaccination. In Ho Chi Minh City, the vaccination rate is being pushed very quickly and the government is trying to fully reopen the entire ecnomy by January 2022. If everything goes according to plan, the apartment market is expected to recover gradually from January 2022.
As for when is expected to fully recover, it depends largely on the favorable developments in the fight against the Covid epidemic and if we see another outbreak. This is very difficult to predict but we think it’s time to move on. In 2022, the recovery conditions of the apartment market will be much more favorable.
For investors, there are now many developers planning to develop and introduce new products. There are only a few months left until 2022. It is expected that in January 2022, buyers will be able to attend promotional events by investors. Similarly, buyers have also begun to reconnect with developers and learn about new products.
We think there aren’t really many buyers here, but they will go and see the products. Just like after a long time of not being able to go out without shopping, when we reopen, there will be a large number of people just to see new products. Buyers are also very eager and will certainly spend a lot of time going to see the products. We are very optimistic that the market will recover after January 2022, CBRE Vietnam.
According to this expert, over the past months, the supply of apartments in the real estate market has decreased simply due to the impact of the Covid-19 epidemic. Investors must comply with the social distance requirements set by the central government as well as the local government. They cannot hold launch events or sell and introduce products at the same time. Even some investors who sell goods online have to wait until the distance is eased before they can close a transaction. Only then can they go to the bank or notary… All of these restrictions will affect the investor’s offers and brokerage transactions, leading to a decrease in the number of apartments for sale. But that does not mean that the demand in the market has decreased.
Seeing that, the demand of buyers, especially buyers to live in, is still very strong. The proof is that the projects that investors bring to the market in the current period, especially projects in the affordable segment have very good sales rates. When they split the sale, almost every offering reaches over 80% of sales. That means demand remains high while supply is limited. Therefore, investors tend to charge higher selling prices.
The supply is fake, prices are still trending up because all the costs related to product development are also higher than normal. In addition to costs related to construction, materials and transportation of goods, capital costs, bank interest expenses, especially the products offered for sale in this period, are also very different from product prices before Covid-19. These products are invested more and the investor has to spend some capital to build and develop these products, which will naturally make the price of the product go up.