Construction material hikes put pressure on property prices

Several key construction materials have seen a sharp price hike during the first three months of 2022, putting significant pressure on property prices, according to the Vietnam Association of Construction Contractors.

Prices for concrete have increased by VNĐ100,000 (US$4.4) per tonne since the beginning of the year. VNA/VNS Photo

Several key construction materials have seen a sharp price hike during the first three months of 2022, putting significant pressure on property prices, according to the Vietnam Association of Construction Contractors (VACC).

VACC said prices for concrete and sand have increased by VNĐ100,000 (US$4.4) per tonne or per cubic metre, bricks by up to 10 per cent and decorative tiles by 10-15 per cent.

Notably, since the beginning of the year, steel prices have increased to over VNĐ19 million per tonne after seven price hikes.

VACC's president Nguyễn Quốc Hiệp said rampant price hikes had hit contractors the hardest as they could no longer maintain a profit margin as input prices increased.

"I'm not confident that most contractors can hold out for much longer. There have been many who were forced to exit the market as prices kept rising while investors kept delaying payment," said Hiệp, "I've seen contractors going into the red because they didn't receive their payments in time due to their overwhelming financial obligations."

Hiệp said the average construction price for low-rise buildings had increased by 50 per cent. By his estimation, newly signed contracts must readjust construction costs by a 20-25 per cent increase.

Nguyễn Thị Thanh Hương, director-general of Đại Phúc Land SJC, said rising petrol prices were another factor that has driven prices up for contractors since the beginning of 2022. However, it's difficult to predict how much impact it will have on property prices.

Hương said the rising costs would likely hurt property developers, especially those who failed to sign long-term contracts with suppliers and contractors. She said developers might be forced to increase their prices sometime in the second or third quarter this year.

In a recent report, the Ministry of Construction said construction material prices are likely to keep going up in line with the global trend in the near future. The ministry said while supply remained ample for current demand, the rising cost has forced suppliers to increase their prices. The report said Việt Nam's total concrete output stayed at over 106 million tonnes per year and could hit over 122 million tonnes if needed. — VNS

Source: VNS
vietnamnews.vn

Related News

Imports of textile and footwear materials soar amid robust industry growth

Imports of textile and footwear materials soar amid robust industry growth

VCN - Vietnam's appetite for raw materials in the textile and footwear sectors surged to new heights, with China firmly holding its position as the dominant supplier.
Proposal extending 50% green tax cut for fuel products in 2025

Proposal extending 50% green tax cut for fuel products in 2025

VCN - The Ministry of Finance has just proposed extending 50% green tax cut in 2025 for gasoline (except ethanol), oil, and grease; reducing about 70% on jet fuel and 40% on kerosene. According to calculations, the total state budget will decrease by about VND44,224 billion under this policy.
Striving for average CPI not to exceed 4%

Striving for average CPI not to exceed 4%

VCN - According to the report of the Ministry of Finance, there are still some factors that put pressure on price levels in the remaining months of 2024, so the Ministry has updated 2 scenarios of average inflation in 2024 increasing in the range of 3.7-3.92%.
Managing price effectively, reducing pressure on inflation

Managing price effectively, reducing pressure on inflation

VCN - Timely and effective price management helps control the consumer price index (CPI) and inflation in accordance with the set target.

Latest News

Nghệ An Province anticipates record FDI amidst economic upswing

Nghệ An Province anticipates record FDI amidst economic upswing

This places the province among the top 10 nationwide in FDI attraction, showcasing its increasing appeal to international investors.
Green farming development needs supportive policies to attract investors

Green farming development needs supportive policies to attract investors

The numbers investing in this sector remains modest, because the supportive mechanisms and policies for the investors are not attractive enough, according to experts.
Vietnamese enterprises adapt to green logistics trend

Vietnamese enterprises adapt to green logistics trend

Principal of the School of Business at the National Economics University, Associate Professor Dr Tạ Văn Lợi, talked to Vietnam News Agency about solutions for domestic enterprises to become more green in terms of logistics.
Paving the way for Vietnamese agricultural products in China

Paving the way for Vietnamese agricultural products in China

VCN - The signing of protocols between the Ministry of Agriculture and Rural Development of Vietnam and the General Administration of Customs of China has created momentum for many domestic agricultural products. In 2025 and the coming years, participating in cross-border e-commerce channels is considered a potential direction for domestic enterprises to directly approach Chinese consumers.

More News

VN seafood export surpass 2024 goal of $10 billion

VN seafood export surpass 2024 goal of $10 billion

Việt Nam’s seafood export in 2024 has surpassed its target of US$10 billion despite many challenges related to the market, logistics and materials, according to the Việt Nam Association of Seafood Exporters and Producers (VASEP).
Exporters urged to actively prepare for trade defence investigation risks when exporting to the UK

Exporters urged to actively prepare for trade defence investigation risks when exporting to the UK

The UKVFTA and the UK’s official participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) from December 15 are creating significant opportunities for Việt Nam to expand exports to the UK. However, the risk of trade defence investigations is always present.
Electronic imports exceed $100 billion

Electronic imports exceed $100 billion

Computers, electronic products and components are the first import group to exceed the US$100 billion mark this year.
Forestry exports set a record of $17.3 billion

Forestry exports set a record of $17.3 billion

Việt Nam’s forestry export turnover is estimated to reach a record of US$17.3 billion in 2024.
Hanoi: Maximum support for affiliating production and sustainable consumption of agricultural products

Hanoi: Maximum support for affiliating production and sustainable consumption of agricultural products

VCN - Hanoi City aims to have clean agriculture by 2030, from land, water to air, and clean the environment, especially rivers. Hanoi must create a difference for agricultural product brands, products must be certified and must build the brand "made in Hanoi".
Việt Nam boosts supporting industries with development programmes

Việt Nam boosts supporting industries with development programmes

Việt Nam’s supporting industries play a crucial role in the development and competitiveness of key sectors, receiving substantial government investment and support.
VN

VN's wood industry sees chances and challenges from US new trade policies

Việt Nam’s wood industry will need to be flexible due to the anticipated new trade policies of US President-elect Donald Trump in the future, according to experts.
Vietnam

Vietnam's fruit, vegetable exports reach new milestone, topping 7 billion USD

Vietnam’s efforts in expanding export markets for its fruits and vegetables in 2024 has paid off as for the first time, the export of these products has brought home 7.2 billion USD, much higher than the figure of 3.3 billion USD two years ago.
Aquatic exports hit 10 billion USD

Aquatic exports hit 10 billion USD

Vietnam's aquatic exports reached 10 billion USD in 2024, driven by shrimp and pangasius, despite challenges related to markets, logistics, and raw materials, the Vietnam Association of Seafood Exporters and Producers (VASEP) said on December 23.
Read More

Your care

Latest Most read
Nghệ An Province anticipates record FDI amidst economic upswing

Nghệ An Province anticipates record FDI amidst economic upswing

This places the province among the top 10 nationwide in FDI attraction, showcasing its increasing appeal to international investors.
Green farming development needs supportive policies to attract investors

Green farming development needs supportive policies to attract investors

The numbers investing in this sector remains modest, because the supportive mechanisms and policies for the investors are not attractive enough, according to experts.
Vietnamese enterprises adapt to green logistics trend

Vietnamese enterprises adapt to green logistics trend

Principal of the School of Business at the National Economics University, Associate Professor Dr Tạ Văn Lợi, talked to Vietnam News Agency about solutions for domestic enterprises to become more green in terms of logistics.
Paving the way for Vietnamese agricultural products in China

Paving the way for Vietnamese agricultural products in China

VCN - The signing of protocols between the Ministry of Agriculture and Rural Development of Vietnam and the General Administration of Customs of China has created momentum for many domestic agricultural products. In 2025 and the coming years, participatin
VN seafood export surpass 2024 goal of $10 billion

VN seafood export surpass 2024 goal of $10 billion

Việt Nam’s seafood export in 2024 has surpassed its target of US$10 billion despite many challenges related to the market, logistics and materials, according to the Việt Nam Association of Seafood Exporters and Producers (VASEP).
Mobile Version