According to experts, the market will record the first positive signs of recovery in the type of housing that serves real needs and has good prices, which is mid-range apartments. That can be easily seen in the past time, in many markets, the apartment type still records clear positive signals with liquidity and interest in the market increasing significantly.
That signal is also shown by the fact that many investors have launched new products, and at the same time, some "hibernating" projects have also begun to be restarted, mainly focusing on products in the 2-3 billion VND segment. In some places, there is also a shortage of goods because the supply of this segment has not been able to adapt in time to actual demand for many reasons, including the lack of legal clearance.
Apartments will be the first type of development in the new cycle of the market.
In a recent survey by Dat Xanh Services Research Institute on the type of real estate that received much attention at the end of 2023, it was also shown that apartments were the overwhelmingly chosen segment with 73%, followed by 15% choosing low-rise houses, 10% choosing land and resort real estate accounting for only 2% of the responses. Notably, up to 82% of responses from customers chose apartments priced under 2.5 billion VND, 13% chose apartments from 2.5 - 3.5 billion VND, only 5% chose the price range above 3.5 billion VND.
The survey results of this study show that customer demand is focusing on real estate products that meet real estate needs at affordable prices, as many experts have commented. In addition, demand for this segment is expected to remain very strong, while supply is decreasing, leading to a slight increase in prices for this type of property in the near future.
According to Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the South, while other real estate segments show signs of bottoming out, the apartment segment has recovered in both sales and rentals. The bottom of the apartment segment will be around the first quarter of 2023 when investors offer many preferential price policies of up to 50%, and banks will also adjust interest rates downward. The real estate market is expected to receive cash flow mainly into the apartment segment.
A survey of the brokerage community conducted by Batdongsan.com.vn earlier also showed that more than 27% of brokers believe that apartments will recover in the third quarter of 2023; 42% believe that this type will recover in the first 6 months of 2024. This is the type that is predicted to lead the recovery trend of real estate.
However, according to Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, the real estate supply in general, including apartments, will hardly have a breakthrough. Apartments from the affordable to mid-range and high-end segments will continue to be in short supply, leading to difficult price reductions or even increases. At the same time, transactions targeting real housing needs will be more numerous. However, market liquidity in general will be difficult to increase due to limited supply. This expert also predicted that primary apartment prices will continue to increase by an average of 3-8% in 2024.
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