Real estate market has lowest transaction volume in Q1: VARS

Apr 4th at 10:12
04-04-2020 10:12:26+07:00

Real estate market has lowest transaction volume in Q1: VARS

The domestic real estate market in the first quarter had the lowest transaction volume in the past four years due to the impact of the COVID-19 pandemic, Viet Nam Association of Real Estate Brokers (VARS) said.

 

Nguyen Van Dinh, Vice President of VARS told VietnamPlus that the reasons for that situation included strong reduction in new supply last year, a long Tet holiday and the novel coronavirus (COVID-19) pandemic.

“The number of transactions only accounted for about 10 per cent of total offered property products in the first quarter, too low compared to the same period of last year,” Dinh said.

However, the price of apartments and low-rise houses in the quarter did not decrease against the fourth quarter of 2019. Now, there are no businesses announcing discounts for those products, he said.

According to the quarterly real estate market report released by VARS early this week, in the first quarter, property enterprises nationwide offered a total of 53,200 units in housing projects, while the successful housing transactions reached more than 7,600 units. The absorption rate of this housing segment was 14.3 per cent.

Of which, the total new supply was nearly 18,700 housing units, including more than 8,350 apartments and more than 10,300 low-rise houses. The successful transactions for the new supply reached more than 2,750 housing units.

Meanwhile, the inventory was more than 34,550 products, including 4,872 products traded successfully.

The luxury apartment segment had the largest inventory, the association said.

According to the Ha Noi Department of Construction, about 8,900 apartments were offered in the Ha Noi market in the first quarter, including 1,167 newly-launched products. The market had only 1,300 successful apartment transactions.

The HCM City Department of Construction said more than 8,400 apartments were offered on the city market in the first quarter, including 4,664 newly-launched products. The market had 1,400 successful apartment transactions.

VARS reported that in the property market in other localities, transactions were mainly landed property. Before the Lunar New Year festival, these products still attracted many customers and small investors but now, due to the pandemic, the transactions of those products was very quiet.

Besides that, the pandemic made large investors and trading floors suspend trading activities of their products because customers do not want to come to crowded places. About 50 per cent of total real estate trading floors must close and many property brokers are unemployed.

For the resort segment, the market had few newly-launched products while some products of the inventory were traded successfully in the first quarter.

The association also reported in this quarter, there was a virtual land fever in Thach That District, Ha Noi and Ba Ria-Vung Tau Province.

Dinh said in the second quarter this year, the domestic property market would remain stagnant like in the first quarter, especially the resort segment.

The Ha Noi and HCM City markets are expected to have traded apartments in the second quarter but the volume would be low and mainly in the affordable and mid-grade segments due to high demand, he said.

Those two large markets are predicted to have not many newly-launched apartments so property products that are traded on the markets would mainly be inventory goods.

VARS also forecasts that the land and landed property will remain the dominant product in many provinces and cities, excluding Ha Noi and HCM City. However, transactions are likely to decline sharply over the same period of last year.

Prices of affordable and mid-end apartments in urban areas are expected to not increase because of low demand during the pandemic and high inventory, according to the association.

Meanwhile, price of high-end apartments may fall because capital pressure would force investors to reduce the price.

bizhub



NEWS SAME CATEGORY

Apartment prices in Ho Chi Minh City down 15 per cent on-quarter

The price of apartments for sale in Ho Chi Minh City in the first quarter of 2020 dropped by 15 per cent compared to the last quarter of 2019, according to Jones...

Covid-19 impact: HCMC apartment sales plummets

Q1 apartment sales in HCMC dropped by over 50 percent year-on-year as the novel coronavirus pandemic dampened the market.

Sunshine Group launches super-luxury apartments project overlooking Saigon River

Sunshine Venicia, a super-luxury condo project in District 2 of Sunshine Group – one of Vietnam’s leading real estate developers – will be rolled out to the market...

Novaland receives second tranche of international syndicated loan

Real estate developer Novaland has received the second disbursement from a $250 million syndicated secured term loan.

Novaland continues receiving capital from international institutions

Novaland on March 26 announced that it continues receiving capital from an international financial institution by the second disbursement of $101 million of the...

HCMC apartment rent revenues plummet amidst Covid-19 pandemic

Landlords are reporting plunging revenues as occupancy drops and struggling tenants seek discounts over coronavirus impacts.

Property developers offer more products, support to boost HCM City market

The HCM City real estate market provides more housing projects and subsidises rentals to boost the market amid the Covid-19 epidemic.

Association calls for tax incentives for social housing developers to be consistent

Tax incentives for developers of social housing projects for lease should be made clear and consistent to encourage private investment in the segment, according to...

Homestay owners lose customers amid COVID-19 pandemic

Kim Thanh has been struggling recently to look for long-term tenants for a condo that she rents for short-term stays in Ba Dinh District in Ha Noi.

Flexible offices rise in the pandemic season

The demand of enhancing collaboration and productivity are encouraging many companies and organisations to approach more progressive fit outs and flexible office...

Real estate stocks

Construction stocks


MOST READ


Back To Top