Real estate market news

In Bien Hoa city, there are currently project that meets the housing trend for customers, but because of the increasing price, it is still difficult for subjects with real living needs such as workers, experts...


Housing prices in Dong Nai increased because of the adjustment of land price list in provinces.

Increase in house prices due to change in land price list

For the past two years, HCMC has had very few approved new projects. Projects from previous stages also faced many difficulties in legal procedures. Meanwhile, the real estate market in neighboring areas is thriving. In addition, the application of new land price list by provinces such as Dong Nai and Binh Duong has made real estate prices soar.

According to real estate experts, the real estate market prices in the suburbs increase due to the influence from the limited supply of Ho Chi Minh City. In addition, the more synchronous investment in infrastructure in many districts of Ho Chi Minh City also made real estate prices in these areas increase.

Ho Chi Minh City Real Estate Association said that the reason for this phenomenon was because the land fund in the center was increasingly limited, making investors and enterprises flock to the satellite market.

According to CBRE Vietnam, the formation of large-scale urban areas is considered a notable highlight in the housing market in the neighboring provinces of Ho Chi Minh City. These urban areas are formed along traffic routes connecting Ho Chi Minh City and other provinces and cities, so they are paid special attention by the customers. However, the purchase of real estate is mainly for investment. They look for real estate products and "make payment for purchase" from the first stage, then resell upon the prices increase.

According to the price data of market research company Batdongsan.com.vn, in Binh Duong, the price of 2019 increased by over 30% compared to 2018 and in 2020 increased to 45%; In Dong Nai market, thanks to the advantage of being contiguous to Eastern area of Ho Chi Minh City and local infrastructure investment activities, especially projects of expressway, construction of Metro line... and the applied new land price list has lifted up the land and house prices sharply. Typically in Bien Hoa, only in 2018-2019, the price increased by over 30% and in 2019-2020 increased by over 40%, house prices are forecasted to increase further in 2021 when there will be many projects implemented here.

Especially, analysts said that house prices in Bien Hoa city would increase strongly in the near future, because house prices in Bien Hoa city were at an average of VND 20 to VND 45 million/ m2 and from 30 to 60 million/ m2 in Di An city (Binh Duong). While the advantages of traffic, planning as well as entertainment facilities, school and hospital, Bien Hoa was ranked higher than Di An city.

In addition, the average annual increase in house prices under the rule of development will also bring Bien Hoa city a new increase margin.

Solution for house buying problem

Mr. Trinh Xuan Thang, 36 years old, coming from Binh Thuan, working in an industrial zone of Bien Hoa, said that he was currently married with 2 young children, his salary was VND 20 million/ month and his wife's salary was VND 19 million/month. Currently, the spouse wanted to buy an apartment with good security and ventilation because they were renting house every month, which is quite inconvenient.

“For the whole year, we went to looking to buy an apartment, but there are mostly bare lands, townhouses and villas in Bien Hoa while social housing can’t be purchased. Even heading to Thu Duc Ho Chi Minh City to buy but the price is too high. So my family's dream of having a place of residence has been fulfilled yet. However, recently I knew that there is an apartment building right on the Hanoi Expressway, seemingly invested by Hung Thinh Land, about 1km away from our workplace, so we are going to review. Hope to have a chance to find a house that suits our demand and financial ability,” Mr. Thang said.

Sharing about the criteria for choosing a place of residence, Mr. Thang said, he was looking to buy an apartment with a price of about VND 2 - 3 billion and had a loan supported by the bank, with an area of 60 - 75 m2, two bedrooms, and especially in a convenient traffic location to the workplace, internal facilities, business center and kindergarten to send his children to study right there.

Mr. NNH - General Director of a real estate distribution company said that the demand for affordable place of residence is obviously always high, but comparing house prices with the income of workers in major cities as Ho Chi Minh City and neighboring provinces such as Dong Nai and Binh Duong, the vast majority of people still can’t afford to buy a house. However, understanding this, investors now have many financial policies to help people easily own a place of residence such as: only need to pay 30% of the value, the rest will make a loan from the bank with the term from 20 to 25 years and interest support...

In addition, Mr. Vo Van Thang, director of ACB bank branch in District 2, Ho Chi Minh City, said that nowadays when house prices rise, the housing segment becomes increasingly scarce, the choice of most workers in major cities is to look to buy apartments in the suburbs.

If it is difficult to find apartments at the threshold of VND 2.5 - 3 billion/ unit in Ho Chi Minh City, the choice in Bien Hoa is somewhat more feasible. Because there are not many apartment projects here, and the Binh Duong apartment market has exceeded the price threshold of VND 40 million/ m2, it is very difficult for customers to buy apartments here.

Mr. Thang said that the increase in house prices was causing customers who have 1 million dong not to "dare" to borrow the remaining 1 billion dong to buy a house when their income is variable due to the epidemic. For them, the apartments costing more than VND 2 billion were still too high that they must consider. But on the contrary, there are also people with modest fund determined to borrow more to buy houses, because they know that house prices will continue to increase but not decrease.

"Of course, the problem of properly calculating the finance of buying houses will largely decide whether or not to own the houses of workers", Mr. Thang said.

In the aspect of buying apartments for investment, Mr. Phan Cong Chanh, an expert of individual real estate, once said that in buying and selling real estate, use of leverage to invest in real estate is a smart way. However, in order to use leverage effectively, we must have certain principles.

Firstly, there must be products before thinking about leverage: that is, choose potential real estate products with the profitability.

Secondly, clearly understand the rule of 2 times of 50%: that is, the loan must not exceed 50% of the product price and the monthly payment must not exceed 50% of total monthly household household income.

Thirdly, set out general rules before buying a project together: If two people or more contribute capital to buy real estate and borrow money from a bank, it is necessary to set out the rules of exit time, profit...

"When borrowing money from banks, investors should note: Carefully review the facility agreement, the amount to be paid monthly...", Mr. Chanh emphasized.