COVID19 and 10 Notices of real estate in Vietnam
Covid-19 has changed real estate drastically, not only in the way many people view homes but also in demand, prices and overall trends.
Tenants leave the city
Specially, most of the locals, students and expats come to big cities such as Ho Chi Minh, Ha Noi,... for working, higher education and doing business. They are movable tenants.
Government support tenants by stimulus programs
Amid the Covid-19 social distancing order, Prime Minister Pham Minh Chinh has requested localities to provide support for residents.
In Ho Chi Minh city where is under damaged severely offered a chain name ATM hostel in order to support free living place to the homeless, unemployed and the poor.
Interest rates are still low
The average mortgage interest rate is at the lowest level in the past 15 years and are only half of the 2011-2012 period.(that fee lenders charge as a percentage of your loan amount) has been nice and low lately.
The lowest is Orient Bank (OCB) with a loan interest rate of only 5.99%/year.
Standard Chartered with 6.49%/year, Shinhan Bank (7%/year), Woori Bank (7%/year)...
Techcombank, Agribank, Vietcombank, .... with interest rates ranging from 7-8.2%/year.
House prices rise faster than wages
Althought pandemic keeps making people unemployed, house prices is up steadily.
The average primary asking house price was $1,625/m2, up 11% year-on-year (as Savills data, quarter 2 2021)
Many people cannot afford to buy a house
Income got influence of Covid epidemic prevention policy which brings people consider of saving rather than use huge capital at this time.
New houses built less
Only 7 projects supplied about 1,600 apartments to the market in the past 6 months, new supply decreased by 74% over the same period and the lowest in 5 years. Understandably, in the context of increased anxiety due to the 4th wave of COVID-19, investors reduced the size of the sale.
Customers prefer small houses to buy
Considering saving than using huge money is the trending option of many people recently. Who know Covid spreadout until when.
House selling is slower than the past
It is obviously explainable. People shall slowly consider if they buy house for living, but the bargain hunters are group of surf investment.
Short-term rental and staycation type increase
Due to quarrantine policy in Vietnam, foreigners have been delayed flights. Also many of them choose Vietnam to stay away from Covid speadout in the world.