The strict lockdown situation has taken the wind out of the sails of the property market in the south but experts predict this sector will rebound swiftly in 2022.
In the third quarter of 2021, the Ho Chi Minh City condo market witnessed a sharp drop in both new launches (down 70.0 per cent on-year) to 1,600 units and sales volume (down 68.4 per cent on-year) to 1,582 units, a five-year low.
The new supply of ready-built houses was heavily limited with only 10 units, down 99.2 per cent on-year.
VNDIRECT estimated that secondary prices in 12 out of 22 districts in the city fell by 0.5-9.2 per cent on-quarter but still increased on a yearly basis. Meanwhile, the average condo primary price climbed 17.0 per cent on-year to $2,271 per square metre.
Unlike in Ho Chi Minh City, in Q3/2021, new condo supply in Hanoi stayed relatively flat, with a decrease of 0.6 per cent on-year, to 3,483 units.
However, sales volume plunged 33.4 per cent on-year due tolow take-up rate and disrupted sales activities.
The Q3/2021 new ready-built housesupply was flourishing, with an increase of 877.8 per cent on-year (around 440 units) in new launches and an increase of 206 per cent on-year (410 units) in sales volumes.
Just as with Ho Chi Minh City, VNDIRECT predicts discounts on secondary prices on a quarterly basis but an increase on a yearly basis. The average primary price of a condo rose 15.9 per cent on-year on average to $1,542 per sq.m.
In 2022, experts expect the residential market to recover, based on three factors: a broad-based recovery of macro fundamentals propelling the property market in 2021, housing purchasing decisions underpinned by affordable mortgage interest rates, and a surge in new supply thanks to the loosening of regulatory bottlenecks.
Hospitality property is expected to recover quickly in the future on the back of COVID-19 vaccination along with the recovery of tourism in Vietnam. The headwinds from the pandemic may be over in the hospitality property market from the end of 2021.