In the first quarter, a local bubble emerged

DNHN - According to VARS, the phenomenon of continuously increasing real estate prices, despite the COVID-19 pandemic, is due to the following: the process of forming new cities, which is driving the price increase; supply shortage, which is unable to meet the market's needs; haven money flows; and the stimulus package.

The Vietnam Real Estate Brokers Association (VARS) stated in the Real Estate Market Report for the First Quarter of 2022 that the first quarter of the year also witnessed a local "land fever" in some localities with information about infrastructure planning such as industrial parks, bridges, roads, airports, and so on. This has caused many relevant ministries and branches to take action to rectify, shape, and develop the market to be healthy and efficient.

At the same time, VARS said that the signs from the market as cited indicated the appearance of a local bubble; because the price of land plots in the region is constantly increasing following the schemes. House prices, in particular, rose, but liquidity did not follow suit.

According to VARS, the phenomenon of continuously increasing real estate prices, despite the COVID-19 pandemic, is due to the following: the process of forming new urban areas, which is driving the price increase; a supply shortage, which is unable to meet the market's needs; safe-haven money flows; and the expectation of a stimulus package.

The significant variation in real estate values in most places, in particular, demonstrates that the urbanization process is occurring in a balanced way in all localities, and the integrated infrastructure system promises to be a healthy driving force for the market.

In the Real Estate Market Report for the First Quarter of 2022, VARS said that real estate enterprises spent about 1 billion USD on buying projects in the first three months of the year, roughly equal to the recorded total. obtained throughout 2017. At the same time, the value of real estate mergers and acquisitions (M&A) in the first quarter of 2022 was the biggest in five years (according to the report on the investment capital market in the first quarter of 2022 by Cushman & Wakefield).

According to VARS, although the commercial and service sectors, in general, face several dangers, particularly in light of unforeseen political developments and the post-COVID-19 epidemic, Vietnamese real estate remains a market receiving considerable financial flows. tell. Also, the sector that is moving up to No. 2 (it will be No. 3 in 2021) is real estate, which brings in almost $600 million in foreign direct investment.

According to VARS, Vietnam's real estate has become an appealing investment channel for reasons such as Vietnam's infrastructure is developing daily, particularly in major cities such as Ho Chi Minh City, Hanoi, and other provinces cities. Highways, as well as linking highways and airports, are giving the nation a new look. Because, in addition to the inherent value of the property, infrastructure plays an important role in the structure of real estate value;

Simultaneously, public investment is projected to be a driving factor in boosting the Vietnamese economy in general and the real estate industry in particular. Meanwhile, according to the Ministry of Transport's report, our country disbursed nearly 7,500 billion VND for important infrastructure projects across the country in the first quarter of 2022, and is expected to This project will disburse about VND 50,300 billion in 2022, focus resources, drastically direct resources to accelerate the progress of key infrastructure projects, and strengthen regional, inter-regional, and international connectivity. Transportation infrastructure projects are very significant.

Commenting on the future trajectory of the real estate market, VARS thinks that the resort and tourist real estate sectors will be an appealing bright spot for investment in the context of the pandemic. The goods, in particular, have a complete and clear legal status, fulfil the criteria and norms of the tourist and resort environment, have a well-invested infrastructure, are in a suitable traffic position, and are well-invested. Furthermore, several housing developments will be employed in the form of tourist resorts with a consistent absorption rate.

Bao Han