According to international Savills Research, in lots of international locations all over the world, the variety of transactions and the worth of residential actual property in current months have recorded a big improve.
According to statistics, the variety of actual property transactions in a number of cities resembling Miami (USA) and Singapore has returned, even exceeding the extent earlier than the epidemic. However, not all housing markets have such speedy restoration.
The pandemic has introduced important adjustments to the market panorama actual property Global. With a variety of international locations recovering from the epidemic, the worldwide actual property funding market noticed a giant change in early 2021 because the multi-family housing phase surpassed workplaces to develop into the most important phase. Global. In the primary six months of 2021, $136 million was invested within the international housing phase, up 35 p.c year-on-year.
In many elements of the world, working from dwelling has made many individuals notice that their present house is not sufficient to fulfill their wants. The shift in housing demand has due to this fact spurred an elevated variety of transactions. The Vietnamese market has not but recorded a change within the mixed working mannequin like different markets, the housing space remains to be fairly small, the travel time is brief and most staff wish to go to the workplace. to speak and join with folks.
While in lots of international locations, the variety of transactions elevated considerably in H1/2021, the variety of housing transactions in Vietnam recorded a lower. In Ho Chi Minh City, the variety of villa and townhouse transactions in Q2/2021 decreased by 33% YoY. The causes for the affect might be talked about: patrons develop into extra cautious earlier than the epidemic, the provision is extra restricted and the quantity of stock is a high-cost asset. Limited provide additionally elevated when gross sales have been delayed and authorized points have been backlog of some initiatives.
Lack of housing provide, unable to fulfill demand is an present downside in some cities, together with Ho Chi Minh City. Mr. Vincent Nguyen, Director of Housing Sales, Savills City. Ho Chi Minh City stated: “In Q2.2021, the primary supply of villas and townhouses in Ho Chi Minh City was low. Restrictions in primary and secondary supply have led to price increases. However, with the development of many projects in suburban districts, the supply problem will be balanced in the future.”
Asia-Pacific residential real estate market
In the first half of 2021, primary transactions of subsistence and townhouses in Ho Chi Minh City decreased by 51% year-on-year. Trading volume in Tokyo was also 24% lower than in the same period of 2019. Despite the decrease in transactions, the absorption rate in Ho Chi Minh City remained high at 65%. The reason for the drop in the number of transactions was a shortage of supply that pushed prices up and the inventory was mainly of assets valued at over $2 million.
Mr. Vincent Nguyen added: “Demand for low-rise real estate will be maintained. This segment will also continue to attract investment, thanks to its good absorption rate, high product quality and limited availability of alternative investment options.”
Cities in China and Singapore in the first six months of 2020 also recorded a decline in trading. However, in the first half of 2021, transactions have rebounded, surpassing pre-pandemic levels. The housing market has always been considered the safest investment channel in China. However, with China’s second-largest real estate group, Evergande, on the verge of collapse, the country’s property market is likely to slow down in the next few months.
Other residential real estate markets in the world
Many US cities recorded a limited number of transactions between March and June 2020. However, in September 2020, the number of transactions surpassed the pre-epidemic average and stayed at consecutive highs in the first six months of 2021. San Francisco was the market that recorded the largest decline, with trading volume falling 57% in May 2020, when tech workers left the city. However, the market quickly recovered and returned to pre-pandemic levels in July 2020 and has remained high ever since. Meanwhile, transaction volume and value real estate in Miami has increased significantly, thanks to the influx of domestic immigrants to this market. The transaction volume in the first half of 2021 here was recorded 34% higher than the same period in 2019.
The real estate market in Europe recorded a slower recovery in pre-pandemic volume. Trading volume in Paris remains low and the Madrid market only returned to pre-epidemic levels in March 2021. In the second quarter of 2021, the London property market recorded a high level of transactions, as buyers rushed to complete transactions before the government’s Stamp Duty Holiday program ended in end of June 2021.
Future residential real estate transactions
In the medium term, when the distancing orders are to be eased and economic activities gradually return to normal, the number of global real estate transactions is expected to grow. Cities will still be places to live, work and play – so demand for urban real estate will continue to grow.
Mr. Vincent Nguyen said that investors should be proactive in coming up with business strategies after the epidemic, because “The epidemic scenario will proceed to trigger difficulties for transactions from now till the tip of the 12 months. However, buyers can make the most of this time to arrange applicable methods and approaches to realize the identical variety of transactions earlier than the epidemic.”