What will the real estate market in the South region look like in 2021?

2020 is the year witnessing the decline of the secondary price level in the real estate market, especially in the segment of apartments and land plots. While the primary price level is still increasing. What will the secondary price movements in the segments be like in 2021?

According to DKRA Vietnam's market forecast for 2021, in HCMC's land plot segment, new supply continues to remain scarce as not many new projects open for sale. The projects are concentrated mainly in the coastal areas such as Cu Chi, Binh Chanh, Hoc Mon, District 9, ... but mainly small-scale projects, subdivision of odd households. Land plots continue to be the top investment choice, although the market has tended to cool down recently.

Meanwhile, in the markets of neighboring provinces, new supply may increase compared to 2020 and mainly concentrate in markets in neighboring provinces such as Long An, Dong Nai, Binh Duong and BR - VT. Demand may recover and increase compared to 2020, the increasing trend will focus on the end of the year. Worth mentioning, the secondary price level does not have many changes in the first period of 2021.

Similarly, in the segment of apartments in neighboring provinces, in 2021, the new supply will increase sharply in most localities. Specifically, City. In Ho Chi Minh City, the new supply can reach the 2019 milestone with about 25,000 units. Binh Duong continues its upward momentum in 2020, the new supply may reach up to 15,000 units to be put on the market. Long An alone is in short supply of new apartments.

Particularly in Ho Chi Minh City's apartment market, the East and South areas continue to maintain a large proportion in the newly launched supply. Grade B and Grade A segments continue to account for a large proportion of newly launched supply. The market continued to lose the supply of Grade C apartments. Luxury apartments increased sharply and established a new price level. The secondary transaction is not too active, the secondary selling price level may continue the downtrend from 2020.

Tran Khanh Quang, a real estate expert, said that in 2021, service real estate and industrial real estate related to production and business activities will continue to thrive. As for housing, there are still not many new products, there are still many sources of old goods, prices have increased to a high level, so it is difficult to increase anymore.

It is worth mentioning that at present, primary real estate (the investor opens for sale) has a relatively high selling price, about 30% higher than the price of formed secondary products (the price of buying and selling). Therefore, in 2021, investors should invest in secondary products that will buy better prices.

According to experts, currently the real estate market is being decided by the primary market, not by trial level. Mr. Vo Huynh Tuan Kiet, Director of CBRE Vietnam's housing division, said that looking back at the market in 2007-2008, the real estate bubble occurred in the secondary market. The selling price is pushed up a lot in the secondary market and most investors use too much financial leverage.

Currently, the price is determined by the primary market (investors make products for sale). Even in some areas like Thu Thiem, in the period of 2015 -2016, the selling price from 65 million VND/m2 to 70 million VND/m2 was high, but now it has increased to 140 million VND/m2 - 160 million VND/m2, originating in the market. primary school, not secondary school.

According to experts, in 2020, the real estate market has two opposite extremes taking place and may continue with the market in 2021. Specifically, the primary price not only decreases but also increases while the secondary price has The decline was widespread across segments. In the primary market, the selling prices of some projects in the next phase increased sharply compared to the first phase.

According to the forecast of most experts, in 2021 the real estate market will gradually warm up after a period of calm due to the epidemic. Currently, the pandemic is well controlled, the economy is in the recovery phase, so the real estate market will tend to increase selling prices here, but the increase is not expected to be as sudden as in the previous period.

According to Economics and Development