After the Covid pandemic, the real estate market had positive changes and showed signs of recovery. However, in the first 6 months of 2022, the real estate market still showed signs of slowing down with new changes in regulations and policies.

Understanding that information, Aurora Vietnam has compiled the latest information about the Vietnam Real Estate Market in the first 6 months of 2022 in 02 markets: Ho Chi Minh City and surrounding areas; Da Nang city and surrounding areas. At the same time, Aurora also looks at the Impact of Climate Change on the Real Estate Market with actionable recommendations for Investors.

Let’s explore the Real Estate Market in the first 6 months of 2022 and the Impact of Climate Change on the Real Estate Market with Aurora:

A. Overview of Socio-Economic Situation in the first 6 months of 2022

 

Vietnam economic index in the first 6 months of 2022

Economic growth in the first 6 months of this year compared to the same period last year reached a good rate of 6.42%. Inflation is under control, the average consumer price index (CPI) in the first 6 months of 2022 increased by 2.44% over the same period last year; core inflation increased by 1.25%.

Policy and legal

In early 2022, the government issued a number of Decrees on Real Estate as follows:

• “Decree No.02/2022/NĐ – CP” detailing the implementation of a number of articles of the Law on Real Estate Business;
• “Decree No.16/2022/NĐ – CP” on penalties for administrative violations in construction

In particular, the State Bank branch in Ho Chi Minh City sent “Official Dispatch No.437/TTGSNH-TTR”L to local credit institutions on strengthening the strict management of credit granting for the real estate sector.

 

B. Real estate market movements in Ho Chi Minh City and surrounding areas

 

New supply

There are signs of recovery but mainly in the vicinity of Ho Chi Minh City and projects implemented by reputable investors. With the apartment segment, the Grade A segment accounts for a large proportion and leads the market.

Liquidity

Being heavily influenced by the bank’s credit tightening; primary selling price continuously increased sharply compared to market pressure.

Market forecast for the second half of 2022

• The land plot segment maintains stability, focusing on projects that have been launched for sale and provinces such as Long An, Dong Nai and Binh Duong.
• The apartment segment may experience a decrease in supply due to the impact of the previous real estate credit squeeze.
• The townhouse/villa segment may increase slightly. In the city. Ho Chi Minh supply is mainly in the East.

C. Real estate market movements in Da Nang City and surrounding areas

 

Supply and consumption

The market is mainly concentrated in Da Nang and Quang Nam (in which the strongest is in Da Nang), Thua Thien Hue individually does not have much supply and its consumption is not high.

Liquidity

The liquidity in the primary and secondary markets is not high due to the influence of credit tightening as well as difficulties from leasing activities.

Market forecast for the second half of 2022

• The land plot segment is mainly concentrated in Ngu Hanh Son District (Da Nang), Dien Ban, Hoi An (Quang Nam).
• The apartment segment ranges from 600 to 800 units, mainly in Da Nang.
• The townhouse/villa segment did not change much, Quang Nam and Da Nang continued to lead the supply.
• The resort real estate segment is expected to increase slightly, but it is unlikely to have a sudden change.

D. Impact of Climate Change on Real Estate

Climate change poses two main risks to the real estate industry:

• Physical risks: Risks directly caused by specific catastrophic events that damage structures causing business and economic losses
• Transition risk: Includes changes in the economy, regulation, consumer behavior, technology and other human responses to climate change.

Especially climate change leads to skyrocketing property fees as well as scarcity of resources affecting the valuation of the real estate market.

 

E. Suggestions for developers

Suggestion 01: Understand the impacts of Climate Change and Develop a Project Risk Assessment

Suggestion 02: Build a non-carbon ecosystem

Suggestion 03: Build new products and values

 

👉🏻 Details of All Suggestions: Click Here

 

Summary

 

Although the first 6 months of 2022, the real estate market was greatly affected by the policy of tightening credit and limiting supply, causing housing prices to exceed the purchasing power of people, but this price will be adjusted and returned to the equilibrium level. in the last months of the year. In addition, investors can anticipate the new real estate cycle by preparing in advance for climate change scenarios as well as taking real estate development actions associated with environmental protection.

To explore more report and marketing trends, and how Aurora applied those in our campaigns, please visit our showcases here. We believe that a coffee chat can illuminate many amazing ideas for your brand, let’s go grab a coffee with us: hello@auroravietnam.co