The price of construction materials in the country has increased by an average of 25% compared to the beginning of the year, especially iron and steel, affecting the progress of construction works. If the price of input materials is not restrained, the real estate market (real estate) will establish a new price level, affecting buyers.
The price of construction materials has not cooled down yet
According to a review by the Vietnam Association of Construction Contractors (Ministry of Construction), construction steel currently accounts for about 28% of the cost of building an apartment apartment and about 35% of the cost of building a townhouse. With steel prices currently increasing by 40-45% compared to the first months of the year, the unit selling price of investors will be greatly affected.
In addition, many cement manufacturing enterprises have also adjusted the selling price of their products, with an increase of 30,000-40,000 VND/ton or more, also "teaming" construction investment costs compared to expected the beginning of the works...
This is the concern of many construction contractors and investors, because the construction and installation unit prices are being significantly higher than the estimate from the beginning of the year, affecting the total investment, while for other products. Real estate, material costs are included in the selling price and must be borne by the home buyer. If the price of input materials is not suppressed, it is likely that real estate will set a new price level, affecting buyers and the progress of construction works.
According to a review by the Vietnam Association of Construction Contractors (Ministry of Construction), construction steel currently accounts for about 28% of the cost of building an apartment apartment and about 35% of the cost of building a townhouse. With steel prices currently increasing by 40-45% compared to the first months of the year, the unit selling price of investors will be greatly affected.
In addition, many cement manufacturing enterprises have also adjusted the selling price of their products, with an increase of 30,000-40,000 VND/ton or more, also "teaming" construction investment costs compared to expected the beginning of the works...
This is the concern of many construction contractors and investors, because the construction and installation unit prices are being significantly higher than the estimate from the beginning of the year, affecting the total investment, while for other products. Real estate, material costs are included in the selling price and must be borne by the home buyer. If the price of input materials is not suppressed, it is likely that real estate will set a new price level, affecting buyers and the progress of construction works.
Rising material prices affect the progress of real estate projects.
And yet, especially for construction businesses, the skyrocketing price of input materials will make construction costs increase sharply, reducing profits. In addition, the increase in construction cost/m2 also causes many customers to postpone building construction plans or if the contract continues, they have to cut down the construction scale, reduce materials in other items to compensate. The generation and quality of construction works will certainly be affected.
In this regard, Chairman of the Vietnam Association of Construction Contractors, Mr. Nguyen Quoc Hiep, said that construction contractors currently face difficulties that cannot be solved because the investors are not state capital. Most countries use fixed unit price contracts and do not adjust at the time of signing, except in case of force majeure. The force of construction contractors across the country is in danger of "breaking the battle...
Therefore, construction contractors hope that the Ministry of Construction will soon issue a Circular guiding Decree No. 10/2021/ND-CP of the Government on management of construction investment costs to organize the establishment of a price index. construction, reflecting the fluctuation of construction prices over time, serving as a basis for adjusting the fluctuation of construction prices over time and preliminary adjusting the total construction investment in order to stabilize the market. material.
According to the General Statistics Office, the industry - construction sector has been the area that has suffered a lot of impacts from the COVID-19 epidemic over the past year, with the rate of businesses affected up to 86%. To overcome difficulties and stabilize production, most businesses have to reduce production and construction costs, and balance input materials.
Soon to stabilize the price of construction materials
Report of the Ministry of Construction in the third quarter of 2021, even during the epidemic, housing prices in Hanoi and Ho Chi Minh City still increased and it was difficult to find cheap apartments in the market. The situation of scarce supply of projects, which has been "drip" since 2019, is further affected by the two years of the COVID-19 epidemic, becoming more and more scarce.
According to Mr. Nguyen Van Dinh, Vice Chairman of Vietnam Real Estate Brokers Association, the demand for people's residence and real estate investment is still large, while the supply is limited. In addition to the cause of legal problems, epidemics, affecting the completion of projects for many investors, the supply-demand mismatch is one of the main reasons why real estate prices continue to trend up.
Professor Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, said that the inadequacies and overlaps between the Housing Law and the Land Law, as well as related laws, are the cause of the shortage of projects in the market. new judgment. Failing to remove legal issues for real estate projects will affect the market in the medium term. In the coming years, the real estate market will lack supply, prices will continue to increase according to the rules of the market...
Talking about the real estate market at the end of 2021, Mr. Nguyen Quoc Anh, Deputy General Director of Vietnam's No. 1 real estate service channel batdongsan.com.vn recently released survey results, including changes in behavior of investors. real estate seekers after each outbreak. Specifically, the first outbreak of the epidemic took place in early 2020, the level of real estate search dropped sharply. But soon, when the epidemic was under control, there was a strong recovery, up to 306%. The third outbreak, the level peaked with a 378% increase in interest in March 2021. By the 4th time, the amount of interest is still higher than most of the periods 2020. In fact, interest in real estate has always existed, only affected by the epidemic, but for a short time.
Faced with this fact, Deputy Prime Minister Le Minh Khai, Head of the Steering Committee for Price Management, has just asked the Ministry of Construction to coordinate with the Ministry of Industry and Trade to actively research a number of solutions to monitor and stabilize material prices. construction, especially the prices of steel, sand, cement... In addition, closely monitor the developments of the real estate market, avoid the possibility of a local hot rise in real estate prices in the remaining months of the year and effectively implement the solutions assigned by the Prime Minister to promote the development of the real estate market.
In this regard, Chairman of the Vietnam Association of Construction Contractors, Mr. Nguyen Quoc Hiep, said that construction contractors currently face difficulties that cannot be solved because the investors are not state capital. Most countries use fixed unit price contracts and do not adjust at the time of signing, except in case of force majeure. The force of construction contractors across the country is in danger of "breaking the battle...
Therefore, construction contractors hope that the Ministry of Construction will soon issue a Circular guiding Decree No. 10/2021/ND-CP of the Government on management of construction investment costs to organize the establishment of a price index. construction, reflecting the fluctuation of construction prices over time, serving as a basis for adjusting the fluctuation of construction prices over time and preliminary adjusting the total construction investment in order to stabilize the market. material.
According to the General Statistics Office, the industry - construction sector has been the area that has suffered a lot of impacts from the COVID-19 epidemic over the past year, with the rate of businesses affected up to 86%. To overcome difficulties and stabilize production, most businesses have to reduce production and construction costs, and balance input materials.
Soon to stabilize the price of construction materials
Report of the Ministry of Construction in the third quarter of 2021, even during the epidemic, housing prices in Hanoi and Ho Chi Minh City still increased and it was difficult to find cheap apartments in the market. The situation of scarce supply of projects, which has been "drip" since 2019, is further affected by the two years of the COVID-19 epidemic, becoming more and more scarce.
According to Mr. Nguyen Van Dinh, Vice Chairman of Vietnam Real Estate Brokers Association, the demand for people's residence and real estate investment is still large, while the supply is limited. In addition to the cause of legal problems, epidemics, affecting the completion of projects for many investors, the supply-demand mismatch is one of the main reasons why real estate prices continue to trend up.
Professor Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, said that the inadequacies and overlaps between the Housing Law and the Land Law, as well as related laws, are the cause of the shortage of projects in the market. new judgment. Failing to remove legal issues for real estate projects will affect the market in the medium term. In the coming years, the real estate market will lack supply, prices will continue to increase according to the rules of the market...
Talking about the real estate market at the end of 2021, Mr. Nguyen Quoc Anh, Deputy General Director of Vietnam's No. 1 real estate service channel batdongsan.com.vn recently released survey results, including changes in behavior of investors. real estate seekers after each outbreak. Specifically, the first outbreak of the epidemic took place in early 2020, the level of real estate search dropped sharply. But soon, when the epidemic was under control, there was a strong recovery, up to 306%. The third outbreak, the level peaked with a 378% increase in interest in March 2021. By the 4th time, the amount of interest is still higher than most of the periods 2020. In fact, interest in real estate has always existed, only affected by the epidemic, but for a short time.
Faced with this fact, Deputy Prime Minister Le Minh Khai, Head of the Steering Committee for Price Management, has just asked the Ministry of Construction to coordinate with the Ministry of Industry and Trade to actively research a number of solutions to monitor and stabilize material prices. construction, especially the prices of steel, sand, cement... In addition, closely monitor the developments of the real estate market, avoid the possibility of a local hot rise in real estate prices in the remaining months of the year and effectively implement the solutions assigned by the Prime Minister to promote the development of the real estate market.
Van Son
Link: https://baomoi.com/gia-vat-lieu-tang-anh-huong-den-tien-do-cac-du-an-bat-dong-san/c/40647134.epi
