Property sector poised for strong recovery 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.