There is no denying the difficulties that the real estate market has suffered during the Covid-19 pandemic. However, experiencing challenges, residential real estate still finds positive opportunities for development.

Residential real estate still finds positive opportunities to grow during the pandemic.

Opportunity to look back on housing planning

Residential real estate (apartments, villas, townhouses) is going through a really tough period. Primary supply remained low, investors' confidence decreased, leading to the delay of the launch of new projects.

According to Savills statistics , in the third quarter of this year, the primary supply of residential real estate was about 3,000 units, the lowest level in the past five years, down 18% QoQ and 70% YoY. In which, 11 projects are temporarily suspended for sale, while new supply is limited and inventory is low.

New supply of about 350 units came from a new project and subsequent phases of existing projects, down 78% QoQ and 95% YoY. Grade C led the new supply with 87%.

The transaction volume and absorption rate of the third quarter were at the lowest level in the past 5 years. The total transaction volume was just over 400 units, down 70% QoQ and down 94% YoY.

While the absorption rate reached 14%, down 23 percentage points quarter-on-quarter and down 58 percentage points year-on-year. Grade C led the transaction volume with 81% of the total transaction volume and the absorption rate reached 21%. The volume of transactions from the new supply reached 47% of the total transaction volume and the absorption rate reached 55%.

Assessing the impacts of the Covid-19 pandemic on the residential real estate segment, Dr. Su Ngoc Khuong said that on a macro scale, we can fully see some of the positive aspects that the pandemic can bring.

In Vietnam, big cities like Ho Chi Minh City, Binh Duong, and Hanoi have a high density of planning, so when the epidemic broke out, the speed of spread was very fast, profoundly affecting daily life. .

Therefore, on the positive side, after the pandemic, urban planners will have the opportunity to look at how to develop planning most effectively.

Long-term strategic planning

The second positive side, according to Mr. Khuong, is that through this epidemic, economic planners in general and real estate developers in particular will have the opportunity to rethink the long-term general strategy.

Because any economic activity cycle has ups and downs. Depression can be caused by economic crisis, war, epidemic...

The epidemic will be one of the things that economic planners, especially at the national level, need to consider for the development orientation of economic sectors when something goes wrong.

Particularly for real estate developers, this is a lesson for them to consider, look back in cases of force majeure, where is their resistance and how to avoid this situation. exhausted, it is difficult to get up," emphasized Mr. Khuong.

Regarding the prospects of the commercial housing segment, according to the latest market report of Savills, by 2024, the supply is predicted to be about 120,000 apartments from 119 projects, mainly Grade B apartments accounting for 48 %. In which, Thu Duc city leads with 44% of future supply.

It is expected that in the fourth quarter of 2021, about 7,000 units are expected to be offered to the market, of which 90% of the future supply will come from the next phases of existing projects.

As for the villa and townhouse segment, the future supply by 2024 is expected to reach nearly 9,600 units/lot.

Thu Duc city accounted for the largest share with 32%, followed by Binh Chanh with 24% and Binh Tan with 11%.

Dr. Khuong added that, in the current context, real estate is a part of the Vietnamese economy. Therefore, the recovery and development of Vietnam's economy is of paramount importance. When the economy recovers, the real estate sector can return to orbit.

In addition, in order for real estate projects, especially the housing segment, to recover and develop quickly, it is necessary to have better measures to solve difficulties in terms of legal procedures. support books from the State.

Difficult to surf, push the price

Commenting on the trend of real estate price changes in the last months of the year, Mr. Khuong said that from now until the beginning of 2022, there will not be many big changes in the real estate market.

It is also not feasible for investors to carry out surfing transactions to push up prices in the real estate market in the near future, especially when Vietnam is not yet completely under control of the epidemic and there are still limitations in communication. social as well as business activities.

In the field of real estate investment, Mr. Khuong divided into two groups.

Specifically, for the individual investment group, if the housing need is urgent and the money to buy a house is available in advance, without using economic leverage, this is a good opportunity to buy a house.

However, for investment group surfing or short-term investment group, according to Mr. Khuong, this is not the right time.

As for institutional investors, through the process of working with many foreign investors, Mr. Khuong said that for tourism and commercial real estate, foreign investors are still very cautious. important. But for residential real estate, office real estate, they are still particularly interested.

However, the difficulty of investors in this case is going to Vietnam to study more about the market due to limitations of international commercial flights.

If the routes are reopened, these investors will go to Vietnam to continue their mergers and acquisitions activities.

According to Cafeland