Real demand for housing is still very large.
According to Savills Vietnam's forecast, in Ho Chi Minh City alone, the supply of mid-range apartments will reach about 9,000 products by the end of 2023. This is a positive change for market demand because in the past, high-end and luxury segments flooded the market while demand for purchase and use was non-existent.
Thanks to this change, from the middle of the second quarter of 2023 until now, the number of transactions has shown signs of a significant increase. Especially with apartments priced at around 3 billion VND/unit, many customers are interested. Most of those interested in this segment are customers with real housing needs and strong finances.
Reality shows that in some projects with prices in this segment in the southern area of Ho Chi Minh City or even in neighboring provinces of Ho Chi Minh City, the sales volume is quite good, bringing hundreds of billions in revenue to investors in just a short time.
"Affordable" projects have still generated transactions in recent times, this is a bright spot in a market lacking liquidity.
Many opinions say that this is the effect of the Government's recent policies to remove and support the real estate market. In particular, the State Bank has continuously reduced operating interest rates 4 times, helping investors and customers easily access cash flow and better purchasing policies during this period.
Along with those positive signals, many investors continue to maintain sales policies that are attractive enough for both real buyers and investors, such as strong discounts for one-time payments, long-term interest rate support, etc. Thereby improving the liquidity problem that has held the market back during the first 3 months of the year.
Learning from the previous volatile period, some real estate businesses have changed their business and operation methods, streamlined their apparatus and made prudent decisions. That is, focusing on developing existing projects, promoting mid-priced products that suit market tastes and focusing on strengths that buyers care about such as legality, incentives and operations.
According to Savills Vietnam, Ho Chi Minh City is still an attractive destination for young people, a group of qualified workers from all over the country. With a population of more than 10 million people and 55% of the population being young, about 30% of the population in the young age group has the need to buy a house. With a large demand, transactions from mid-range projects are still taking place, although not regularly.
Home buyers will benefit during this period
With investors paying more attention to the real needs of the market, in the coming time, many products in the mid-range segment will continue to join the supply to meet current needs. Not only that, with the Government's focus on developing social housing projects, in the future, creating a large number of products in the low-cost segment will create competition for the market.
Thanks to that, buyers with real housing needs will benefit when investors start competing in this fierce race. Meeting the market in the recovery phase is not only the survival goal of the business but also the stage of affirming the brand and real value of the business when meeting the needs of the market.
Developing affordable social housing projects will increase market competitiveness, benefiting buyers.
To do that, in addition to developing products with suitable prices and offering special discount policies, investors must also focus on practical and diverse incentive packages that are not easily available in normal market conditions. In addition, the developed products must also have special features related to utilities, services, living environment according to the right tastes... to be able to compete and attract buyers in this special period.
In recent times, the real estate market has received positive signals, which are the drastic intervention to remove difficulties from the Government, for example, Resolution No. 33 on a number of solutions to remove and promote the safe and sustainable development of the real estate market was issued. The Government also established many working groups, in conjunction with local authorities to study each area and each project to find out the difficulties and find solutions to remove them.
In addition, Decree 08 on bond debt deferral and postponement, Decision 313 and 314 of the State Bank on gradually reducing interest rates to unblock credit flows also "saved" real estate businesses in difficult times. Even many businesses with strong legal projects, solving market needs have easily accessed capital sources from banks.
Thanks to the above positive signals, the real estate market is receiving many expectations to recover in the fourth quarter of 2023, when the Government's management policies begin to "permeate" into the economy. That is also the period that many people look forward to when the difficulties will pass, investors will begin to return to the market to improve liquidity.
Source
Comment (0)