MOC reported that prices of land and houses increased in the first two quarters of 2022, then slowed down in Q3 and slightly fell in some projects in Q4. 

However, price decreases only occurred with a few projects, while most products saw prices staying at the high levels set in mid-year. 

The report was released on the eve of the conference on promoting sustainable development of the real estate market, slated for late this week.

According to MOC, the market faced the worst difficulties in the second half of 2022. They're was a shortage and the market was quiet. Real estate firms could not access bank loans and had to suspend projects and lay off workers.

Regarding real estate supply, MOC said the housing supply faced shortsges in 2022. The products available were mostly mid- and high-end, while affordable products were lacking.

The proportion of affordable products fell from 20 percent of total supply in 2019 to under 5 percent in 2022.

The number of projects under execution was limited. Regarding commercial housing development, there were 126 projects with 55,700 apartments in total licensed in the whole year of 2022, which was just equal to 52.7 percent of 2021. 

Of these, 466 projects with 228,000 apartments were under implementation, or 47.7 percent of that in 2021; while 91 projects with 18,000 apartments were completed, or 55.2 percent. 

Meanwhile, in 2022, only 9nibe social housing projects with 5,520 apartments were licensed and 114 projects with 6,190 apartments were completed.

The number of successful transactions of apartments and separate houses were unstable through quarters in 2022. The figure was highest in Q2 and low in Q4.

HOREA (HCM City Real Estate Association) chair Le Hoang Chau also said that product structure is unreasonable. Affordable products or products priced at VND30 million per sqm or lower and social housing were in short supply. 

In HCM City in 2020, only 1 percent of products were considered affordable, and there has been no such affordably priced product since 2021.

Meanwhile, the proportion of high-end products keeps rising. As a result of the shortage and lack of affordable products, prices have been pushed up.

There are social housing products priced at VND25 million per sq m, much higher than the targeted level of VND15 million.

Housing with prices below VND35 million per sq m cannot be found in HCM City.

Hong Khanh