Several key construction materials have seen a sharp price hike during the first three months of 2022, putting significant pressure on property prices, according to the Vietnam Association of Construction Contractors (VACC).
Up to 92 percent of the respondents said they intend to purchase a home in Vietnam and more than half of them wish to buy a home within the next two years, according to a study by property portal Batdongsan.com.vn, a member of Singapore-based property technology group Property Gurus.
Vietnam's real estate prices have increased rapidly in the past two years despite the difficulties caused by the COVID-19 pandemic, which reduced the incomes of the majority of the population, experts have said.
Real estate prices in 2021 are expected to increase by 10 percent over the previous year, said Nguyen Van Dinh, deputy general secretary of the Vietnam Real Estate Association (VNREA).
A recent survey by Savills found that gap of property prices are narrowing between urban and surrounding areas as more facilities are offered to compensate for outer locations.
Ho Chi Minh City’s plan to establish Thu Duc city by merging Districts 2, 9 and Thu Duc has caused property prices in the three eastern districts to increase sharply.
The Vietnamese property market is expected to slow down, with prices starting to drop by the end of this year and hitting the bottom by mid-2021, creating opportunities for home buyers sitting on cash, experts have forecast.
The real estate sector in the central province of Quang Ngai has strong potential to grow, thanks to its geographic attributes but still-low property prices that appeal to investors.
Many commercial banks in the country have increased loan interest rates by 1-2 percent to investors in real estate as property prices continue to rise.
Foreign investors should take account of buying a property in Vietnam at this time as the market is offering great opportunities, according to the UK-based Financial Times newspaper.
Property prices are expected to increase by five to 10 percent in the year of 2016, especially hot projects that have good infrastructure and ensure construction progress.
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