Research on the impact of macroeconomic factors on housing prices in Vietnam

Abstract

In the current context, Vietnam's economy is on a strong growth momentum and recovering after the COVID-19 pandemic, the real estate market in Vietnam also has significant changes. However, the rapid growth of the real estate market and high property prices also bring some negative effects on the economy. The study aims to assess the impact of macroeconomic factors on the price of house price instability in Vietnam in the period 2012 - 2021. Secondary research data is collected from reports of the General Statistics Office, Ministry of Construction and big real estate corporations CBRE and Savills. Data including overall economic factors and apartment prices were collected in Hanoi, HCMC. Ho Chi Minh City, Da Nang and Hai Phong from 2012 to 2022. By using fixed effects model (FEM), the results of the study show that there are 07 macro factors affecting house prices in Vietnam. four major cities in the period 2012 – 2021, which are: (1) Inflation; (2) Economic growth; (3) Credit growth; (4) Average income; (5) Stock indexes; (6) Taxes; (7) Interest rates.

Keywords: Real estates market; macroeconomic; COVID-19.