Hanoi and Ho Chi Minh City are the two largest real estate markets in Vietnam. The survey figures of the Vietnam Association of Real Estate Brokers show that in the first and second quarters of 2021, there will be tens of thousands of housings of diversified segments to be offered to the Hanoi market, in which, the north and west of Hanoi will account for the largest proportion.
In Ho Chi Minh City, about 20 projects will be launched in the first six months of 2021, providing about 30,000 housings to the market of all kinds of segments. This promises a better quality market for the business and real estate brokerage.
The demand for the apartment segment in both Hanoi and Ho Chi Minh City is forecasted to still account for a large proportion. The mid-end segment of two-bedroom apartments will continue to be traded the most. In 2021, the number of apartment products traded in these two major markets is expected to reach 90,000 to 100,000.
Based on the market situation, investors have still been interested in-ground projects in localities outside Hanoi and Ho Chi Minh City. However, these ground projects will be gradually scarce because their development has been limited in localities. They will be mainly for auction.
Regarding real estate prices, the apartment prices in Hanoi will remain the same or increase slightly compared to the previous year. Meanwhile, in Ho Chi Minh City, the apartment prices in the first six months of 2021 will still tend to increase, mainly in Thu Duc City. According to the Vietnam Association of Real Estate Brokers, by the end of the year, there may be a strong increase in supply, and F0 investors will withdraw from the market a lot. Then the prices may slow down or even decrease. However, in 2021, there will be no price cuts. New projects coming out at the end of the year will be offered at more reasonable prices.
Along with that, the prices of housings in well-invested, high-quality urban areas in Hanoi and Ho Chi Minh City in 2020 are expected to continue to increase by 5 - 10% compared to last year.
Besides, in other provinces and cities, there will be a 5 - 7% increase in real estate prices compared to 2020. The prices may increase more sharply, reaching over 10% in some localities such as Dong Nai, Binh Duong, Phu Quoc, Van Don, and Mong Cai City (Quang Ninh).
The real estate markets in some localities where they have been quickly developed but stalled because of the COVID-19 pandemic like Da Nang, Quang Nam, Khanh Hoa, and Phu Quoc, will be active again.
Experts also forecast that the risk of real estate bubbles in 2021 will be unlikely to happen because the economy grows at a good rate, demand is still great and prices can be controlled.
If the epidemic continues to be complicated, the procedures for ongoing projects can still be completed. The assets generating cash flow such as office buildings, shopping centers, do not need selling because investors foresee current challenges in the market that are temporary, even prolonged within one or two years. Therefore, they can handle financial problems and maintain expectations in 2022 and 2023.
However, these products are not in large quantity on the market. Therefore, if investors are forced to sell these real estate products, they still have the opportunity to buy similar ones. Five-star hotels, commercial centers, and premium buildings in city centers are real estates with steady revenue.
Compiled by VietnamCredit