The real estate market report recently released by the Dat Xanh Services Institute of Economics - Finance - Real Estate Research (DXS - FERI) said that after the preparation and launch phase in the first quarter, from April 2024, a number of enterprises have started to gain momentum and accelerate to gain market share in the context of limited new housing supply.
Improved Confidence
Thanks to that, the market welcomed many new and old projects being deployed for business (restarting, starting construction, signing, announcing, opening for sale, introducing to the market...). Hanoi, Ho Chi Minh City, Binh Duong province are the leading areas.
In particular, new supply has a significant growth, 1.8 times higher than the entire first quarter of 2024; mainly coming from the Northern market with large-scale projects such as Lumi Hanoi, Vinhomes Royal Island (Hai Phong) and some outstanding projects in the South such as A&T Sky Garden, Picity Sky Park...
The absorption rate also grew significantly, with the Northern market alone increasing by an average of 60% - 65%. Meanwhile, the Southern market recorded a good absorption rate from both the products launched in previous phases and new projects.
"Customer sentiment has improved significantly, as evidenced by the number of customers interested in learning about and making transactions at announced projects. Stable and low bank interest rates are factors that help customers feel confident in buying real estate, especially for residential purposes. However, the continuous fluctuations in gold prices have also somewhat affected the sentiment of short-term investment buyers," the report stated.
An apartment project being implemented in Ho Chi Minh City. Photo: TAN THANH
Meanwhile, the Vietnam Association of Realtors (VARS) said the market is witnessing the return of a large number of personnel in the real estate industry. In particular, the number of sales staff returning to the industry increased by about 20% - 30% compared to the same period. In addition, the number of real estate enterprises returning to operation increased by 22% compared to the same period, showing that the market is ready for a new cycle.
Dr. Pham Anh Khoi, Director of DXS Institute - FERI, commented that investors are now more confident in setting business and financial goals with outstanding growth compared to 2023. Some investors are urgently completing restructuring and preparing financial resources, products, and human resources to return to the market.
"Currently, the number of sales staff at real estate companies has increased by 20% - 30%. The number of trading floors returning to operation continues to increase, creating many opportunities for individual brokers as well as greater competition among brokerage companies. Confidence in the market has improved as new projects for sale and projects being promoted have received great attention from customers and investors as most believe that the market has passed the bottom" - Mr. Khoi shared.
Supply will be more abundant
Dr. Su Ngoc Khuong, Senior Director of Savills Vietnam Investment Consulting, forecasts that the real estate market in the last 6 months of 2024 will continue to have positive signals. The basis for this assessment is that the macro economy is recovering well, the Government is resolutely implementing public investment projects as well as fiscal policies to support the economy. Monetary policy is flexibly managed, interest rates are well controlled.
In particular, the three laws (Land, Housing, Real Estate Business) expected to take effect soon are expected to completely resolve hundreds of projects facing legal problems. "I think that the supply in the real estate market from now until the end of the year will be abundant and transactions will be more active than in 2023. From there, businesses will have revenue and cash flow to solve difficulties" - Dr. Su Ngoc Khuong expected.
According to Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), in the first 4 months of the year, Ho Chi Minh City only had 1 project approved for investment, with a very small scale, and no enterprises proposed new projects. That means the real estate supply in the coming time will continue to be in short supply. However, according to Mr. Chau, the bright spot of the market is that enterprises have made efforts to restructure, restart and resell products of old projects.
"We believe that the real estate market will recover by the end of 2024 because the laws related to real estate have been submitted by the Government to the National Assembly for consideration to take effect soon. The Government is also developing a pilot resolution, allowing enterprises and economic organizations to negotiate on receiving land use rights or transferring land use rights other than residential land to implement commercial housing projects. This will help remove legal obstacles for hundreds of stalled projects (about 148 projects). This means that the supply to the market will improve," commented Mr. Le Hoang Chau.
Source: https://nld.com.vn/bat-dong-san-cho-ngay-khoi-sac-196240530205721143.htm
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