In 2020, despite the difficulties caused by the Covid-19 pandemic, the real estate market witnessed strong price increases in many segments, especially land plots and private houses.
According to data from the Ministry of Construction, if calculated according to the average price in the province/city or district level, the increase in the price of individual houses and land plots in localities is only about 3-5%. However, in some localities, there is a phenomenon of local price increases in some projects and areas with a sharp increase of 30-50%.
At the beginning of 2021, the “fever” of land arose in many areas. As noted by PV Dan Tri, Recently, after appearing “rumors” Binh Phuoc was about to build a dual-use airport in An Khuong commune, Hon Quan district, Binh Phuoc province, immediately a delegation of “storks” from all over the world flocked here. to “make waves”.
In the area around the Hon Quan Tecnic Airport (in An Khuong and Tan Loi communes, Hon Quan district, Binh Phuoc), land speculators flock to this area to entice and entice people to buy and sell land bustling like ” party trip”.
On the inter-commune route An Khuong – Tan Loi, the section from the intersection of Soc Trao A hamlet (Tan Loi commune) to hamlet 5 (An Khuong commune) dozens of signs with the words “Ternic airport land sale”, ” consulting points for buying and selling land”, “for sale cheap airport land”, “for sale and purchase of land in Tecnic airport”… are densely erected.
Not only in the places where planning information appeared, some other land plots also saw an increase in prices right after Tet. Mr. Dinh Trung – a longtime real estate broker – said that the price of project land in the west of Hanoi is being traded at a significantly increased price compared to the end of 2020.
Real estate experts say that real estate prices increase by 10-15%, there are places where a 50% increase in a short period of time when everything around has not had a breakthrough is an unusual phenomenon. This creates a fear of investors when they want to participate in the market.
Ms. Thuy Hien – Director of a media company in Hanoi said that with a relatively large accumulation, but due to the decrease in deposit interest rates, she wanted to invest in real estate but did not know where to buy.
The new price level makes her worry that she will buy at the “peak”, the transaction will be difficult later. Hien’s concern is also the “confidentiality” of many other investors in the current context.
In a recent report, VEPR experts also said that monetary policy, specifically the interest rate tool in 2021, will significantly reduce its effectiveness. In particular, it should be noted that asset bubbles are forming in the stock market and real estate market.
According to VEPR, in fact, in 2020, the asset markets have experienced significant growth, mainly because it is a haven for the idle money of investors and households. This is understandable in times of crisis.
Exchange with People , Assoc.Prof.Dr. Vu Minh Khuong, Lee Kuan Yew University (Singapore), a member of the Prime Minister’s economic advisory group, said that the purchasing power of real estate will continue to increase when Vietnam’s economy grows strongly and the infrastructure of the cities is strong. Big cities will be upgraded dramatically in the near future.
However, investing for speculation needs to be very careful. Sooner or later the Government will introduce the necessary policies to force all investments to contribute to the increase of resource productivity. At that time, investing to create value will benefit, but investing for speculation will have higher risks and lower returns.
The massive investment in the short-term, according to experts, will have adjustments, investors are easy to receive shocks. Especially for bank borrowers, the more dangerous it is.
GS-TS. Dinh Trong Thinh – Academy of Finance is also concerned about asset bubbles. “Looking at the real estate market, prices increased sharply despite the market being extremely quiet and gloomy; 2020 has a place to increase to 20-30%, even more,” said Mr. Thinh. fear.
According to the expert, many people do not know where to invest, they pour money into the real estate market and wait for prices to increase. Currently, the organizations are saying that there is no bubble, but the concern is still there.
According to Dan Tri