It is forecasted that in 2022 the scarce supply will continue to occur. This is also an opportunity for investors with good projects and complete legal documents to take advantage of the progress of closing customers.

According to data compiled by the Ministry of Construction in the report on the real estate market in the first quarter of 2022, there were only 56 more real estate projects eligible to sell houses in the coming future licensed by the local Departments of Construction.

Specifically, in the first quarter of 2022, the whole country additionally had 10,357 housing apartments approved within 56 real estate projects, equal to 33.4% compared to the fourth quarter of 2021. So this proves that the market still had a large shortage of housing supply to be formed in the future.

In the first quarter of 2022, only 22 commercial housing projects were completed, providing an additional 5,217 units, equaling to about 47% compared to the fourth quarter of 2021 and 54% compared to the same period in 2021; 39 newly licensed commercial housing projects with 18,660 units, equaling to about 80% of the fourth quarter of 2021 and 41% of the same period.

Notably, most of the apartment projects expected to be handed over in 2022 in localities have high price growth rates due to increased demand. The common price of apartments in the vicinity of Hanoi is from 30 million VND/m2 or more, targeting middle and high-class customers.

The reason being that the land fund is increasingly limited. In addition, the speed of mechanical migration increases rapidly. The large demand for housing and the few new projects open for sale due to legal barriers are the reasons why the housing price level is continuously high. Therefore, projects that have met the legal conditions are always sought after.

Typically in Bac Giang, BV Land (belonging to Bach Viet Group – BV Group) has accelerated the progress of a real estate complex project in the city center and become the only source of high-end apartments on the market, during the period of 2021-2022. Meanwhile, another project of BV Land in Phu Tho market, Bavella Lac Ngan urban area, was completed in the second quarter of 2022 after only 8 months of commencement. Although located in the high-end apartment segment, the liquidity of this project is quite high in the provincial market.

In addition to Bac Giang, some localities like Hai Duong have also shown apartments priced up to 30-40 million VND. Even in Hung Yen, the price of apartments in Ecopark Urban Area has exceeded 60-80 million VND/m2, equivalent to the selling price of apartments in the inner districts of Hanoi. Some other markets such as Bac Ninh, Hung Yen and Vinh Phuc continue to be in short supply.

According to Mr. Nguyen Van Dinh, Vice Chairman of Vietnam Real Estate Association, Chairman of Vietnam Real Estate Brokers Association, from the beginning of the year until now, the real estate market is witnessing a tight supply, while the demand is much larger. This has led to a sharp increase in housing prices and a shortage of affordable apartments. Many apartment projects in good suburban markets where there is a strong development of industrial real estate are becoming the focus of customer’s attention.

“It is forecasted that in 2022, a positive scenario of lowering apartment prices is unlikely, especially when the supply is scarce. Inflation and rising material costs will also continue to push up apartment prices. Besides, supply projects are still under pressure to increase prices due to the “galloping” increase in the price of construction materials. Thus, a decrease in real estate prices is unlikely,” said Mr. Dinh.

The report on Vietnamese real estate consumer sentiment in the first quarter of 2022 by batdongsan.com.vn also shows that 92% of respondents are intending to buy real estate. More than 75% of real estate owners want to buy an additional real estate product other than current real estate. The rates of population growth, urbanization, finding convenient housing for work… are leading to a situation where supply cannot meet demand. This leads to the trend of buying apartments in the provinces or investing in land plots in the vicinity of Hanoi. It is also the number one priority of investors when the supply of apartments is increasingly scarce, making prices soar in the inner city of Hanoi.

It can be seen that, in the context of scarcity of supply, scarcity of good legal projects, house prices will continue to rise. This is also an opportunity for professional, visionary investors to prepare well in advance to release goods and gain market share. This is also the reason why many businesses, even though they are new names on the market, have a sudden high liquidity and have become the focus of the market.