MARKET OVERVIEW – AUGUST 2021

8 September

A. SOCIO-ECONOMIC SITUATION IN THE FIRST 8 MONTHS OF 2021:

The fourth wave of the pandemic starting from the beginning of May 2021, resulted in many containment measures being imposed. The pressure from these measures of social distancing and lockdown not only affected unskilled and hard labour forces but also impacted on the profitable household business and long lasting businesses.

In 8 months this year, there were 85.5 thousand enterprises temporarily ceased for a certain time, temporarily ceased and awaited dissolution procedures, and completed dissolution procedures, an increase of 24.2% over the same period last year, including 43.2 thousand enterprises temporarily ceased for a certain time, an increase of 25.9% compared to the same period last year; 30.1 thousand enterprises temporarily ceased and awaited dissolution procedures, a climbing up 24.5%; 12.2 thousand enterprises completed dissolution procedures, an increase of 17.8%. On average, nearly 10.7 thousand enterprises withdrawing from the market each month.

B. MARKET OVERVIEW:

  1. SUPPLY HALT:

Unnecessary businesses have been closed following the social distancing directive, make entire market temporarily falling intoa deep freeze. In August 2021, there is no new primary supply in both Hanoi and Ho Chi Minh City.

2. STAGNANT & CAUTIOUS TRANSACTION:

Despite of online introduction and consultancy being in place in many agency, along with the support of already-built technology and application system in hand, the number of successful transactions are relatively moderate.

During this uncertain time of market outlook, the cautious behaviour of customers is totally understandable.

3.MARKET OUTLOOK:

Considering the positive signs which there are the abundant capital in the market, lowest ever interest rate in 15 years, many people can access the mortgage to buy home. Moreover, after the social distancing being lift, many types of businesses will only start to recover, real estate investment would still be the most attractive and favorite channel. Especially, the landed properties continue to be the “king” of all kind.

Taking into account many examples like USA, Australia, Singapore, Hong Kong that have transition to new normal, the housing market in these countries have been heating up considerably. Besides, the housing and property investment demand in Vietnam is real and going to be like the compressed spring is waiting for the right time to bounce when the pandemic is well contained and no measures in place.

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