In Hanoi, after a long interruption, at the end of 2023, there has been a new supply of real estate projects. Mr. Nguyen Van Tuan (38 years old), owner of a real estate brokerage office in Hanoi, said that recently, there has been an additional supply of luxury apartments in Thanh Xuan, Dong Da, Ha Dong districts; low-rise houses in Ha Dong district...
Hanoi real estate market is seeing primary supply, according to experts, this is a positive signal.
According to Mr. Tuan, although the primary supply into the real estate market is still small, in difficult times like now, it is a good sign, showing signs of "overcoming the bottom". Because for a long time, the primary market has almost frozen transactions due to a lack of products from new projects. Transactions mainly take place on the secondary market (buying and reselling).
In the secondary market, investors are taking advantage of low credit interest rates to hunt for potential products. Transactions are therefore more active than in the previous period, especially in the project land, low-rise, apartment and land segments.
According to Thanh Nien 's survey, the interest rate for loans to buy project houses at banks is currently fluctuating between 7 - 7.5%/year, the fixed preferential period is mostly 1 - 2 years. Therefore, borrowing from the bank and using the apartment to be purchased as collateral is the optimal solution, as long as the seller agrees to make a 3-party contract with the buyer, the transaction will be quick and easy.
At some notary offices these days, it is not difficult to see buyers and sellers lining up to complete real estate transaction documents. Some tax officials in districts of Hanoi such as Dong Anh, Dan Phuong, Thanh Tri, Thuong Tin... said that real estate transfer transactions in the past 3 weeks have been more than in the middle of the year, especially in the land segment. The main transaction products are subdivided land, land in residential areas with potential near Ring Road 4, Ring Road 3,5...
Low credit interest rates are contributing to stimulating real estate liquidity.
According to Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), the supply for this segment recently also includes loss-cutting products from investors, and lots that are collateral assets foreclosed by banks. Mr. Dinh commented that interest rates are low, and banks also tend to push capital out to customers, so investors with good and suitable profiles are still the ones targeted by banks.
"Instead of the psychology of probing the market and waiting to catch the bottom, many investors are taking advantage of the "cheap money" opportunity to invest, using more financial leverage. That creates warmer signals for the market," said Mr. Dinh.
One of the reasons why the secondary market is more active is the price of the product. In the hot period, the price of villas and townhouses in the projects was pushed up to the sky, but recently, more and more houses with an area of 120 - 200 m2 have appeared with a price range of 8 - 10 billion VND, even 7 - 8 billion VND each, including land and construction costs. This price has been discounted by about 15% compared to the old price, and compared to the peak period, it has even been "sold off" by about 30%.
"For example, at its peak, the price of townhouses in many projects in Bac Tu Liem District, Hoai Duc District... was pushed up to 110 - 120 million VND/ m2 , but now many lots are being offered at 80 - 90 million VND/ m2 , or even lower, so clearly the discount is quite good," said Mr. Nguyen Van Tuan.
Slow but steady recovery
Mr. Nguyen Van Dinh added that VARS statistics show that many investors have begun their journey of "hunting" for land in suburban areas of large cities and provinces with strong infrastructure development and much room for future growth.
The real estate market shows signs of recovery at the bottom, but demand is not strong enough to create a breakthrough.
Although the market has shown signs of "bottoming out", according to experts, the recovery process will continue to be differentiated by segment and region, due to different absorption capacities.
According to Mr. Nguyen Van Dinh, it is highly likely that in the fourth quarter of 2023 and the first quarter of 2024, the market will continue to recover more clearly due to strengthened investor confidence and lower interest rates. "However, the recovery will be difficult to be sudden because real estate has been sick for a long time," Mr. Dinh said.
Professor Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, said that instead of "hot" development, the gradual recovery of segments accompanied by parallel signs from the capital market and interest rates shows that this is a healthy and sustainable development.
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