Research data from the Vietnam Association of Realtors (VARS) shows that it is likely that property prices wil...
Research data from the Vietnam Association of Realtors (VARS) shows that it is likely that property prices will rise for markets lacking supply, especially in high-demand types of real estate.
Since 2018, policies on sources of capital and decisions by agencies and ministries to control the real estate market have led to a sharp decline in the supply of residential real estate.
It is likely that real estate prices will rise for markets that lack supply, especially in high-demand types of real estate.
The demand for housing is constantly increasing, which is putting pressure on supply, pushing real estate prices to continuously establish new premises. VARS data shows that over the past 10 years, house prices have risen dozens of times. In 2021 alone, average home prices saw double-digit growth, even multiple times over the same period. Low interest rates, coupled with record inflation are contributing to the sharp rise in house prices, but at the heart of the problem is a decline in supply.
With the current supply development situation, according to VARS estimates, Vietnam will have a shortage of about 300,000 housing units each year due to the emergence of new urban households, especially the demand for "separate housing" from the separated younger generation of the extended family.
This severe shortage will undoubtedly drive up home prices even further. However, this shortage does not occur in all segments, which means that not all property prices will be affected equally.
On a large scale, while the supply of residential real estate, especially affordable housing, is and will likely continue to be scarce in the future, the type of high-value resort real estate is present on the inventory list of most real estate giants.
VARS said that as a highly localized product, real estate prices will rise at different rates across regions and markets, mainly depending on the balance of supply and demand. Overall, however, home prices are unlikely to rise much in 2024.
Via Bao Cong ly