At the end of 2023, which real estate segment should you invest in?

According to the Vietnam Association of Realtors, in the second quarter of 2023, the number of apartment transactions increased by more than 30% compared to the first quarter of 2023, reaching about 3,704 transactions. Notably, 80% of successful transactions were apartment projects with clean legal documents, developed by reputable investors.

Data from the Brokerage Association also shows that the specific transaction volume of luxury apartments reached 40%, mid-range apartments reached 35% and affordable apartments reached 1% (due to the extremely scarce supply of affordable apartments).

Batdongsan.com.vn's Q2/2023 real estate market report also classified apartments as products that maintain their value thanks to meeting real housing needs.

Also in the consumer psychology survey of Batdongsan.com.vn, apartments ranked second (after land) in terms of the type of real estate that consumers want to buy in the next year.

The apartment market still attracts investors.

49% of brokers participating in the survey also rated investing in apartments for sale and rent as the most potential activity in 2023.

The growth momentum of apartment prices in particular and Vietnamese real estate in general comes from many factors such as limited supply, gradually increasing demand; strongly developing infrastructure; increasingly improved land management policies from the State, improved economic growth rate over the years...

Similarly, Dat Xanh Services Economic - Financial - Real Estate Research Institute (DXS - PERI) surveyed the types of real estate that received a lot of attention from customers in the second half of 2023.

Survey results show that apartments received the overwhelming choice with 73%, 15% chose low-rise houses, 10% chose land and resort real estate accounted for only 2% of the answers.

Regarding the price range of apartments that customers are interested in, DXS - FERI surveyed, 82% of the responses from customers chose apartments priced under 2.5 billion, 13% chose apartments from 2.5 - 3.5 billion, only 5% chose the price range above 3.5 billion.

This survey result shows that customers' choices are shifting strongly towards real estate product price ranges that meet real estate needs at affordable prices.

Assessing the potential of the apartment segment, Mr. Tran Quang Trung - Business Development Director of OneHousing said that segments serving real housing needs in big cities are still of great interest because of the limited supply factor, typically apartments.

This is the time for medium and long-term investors to choose good properties to buy. In fact, both the selling price and rental price of mid-high-end apartments in Hanoi are still increasing gradually.

A recent report by Colliers shows that the primary selling price in Hanoi is recorded at around 2,500 - 4,000 USD/m2. In the final period of 2023, the price of the apartment market is expected to increase by 4 - 7% compared to 2022, thanks to investors improving the positioning of projects along with prime locations.

Sharing the same view, Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, assessed that the Hanoi apartment market is currently basically "short" of new supply and new projects compared to actual demand.

Therefore, the transactions, selling prices and rental prices of this segment have increased sharply in recent times. In addition to actual purchases, the market has also recorded a trend, the wave of buying apartments for investment purposes has also increased sharply in recent times. This trend will continue strongly in the coming time.

Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, commented that in the context of a difficult market, products that meet real needs such as apartments are the bright spot of the real estate market.

The rapid urbanization rate has caused real housing demand to continue to grow, so the potential for apartment projects is huge. This type will be an important driving force to help regain growth momentum, contributing to the warming up of the real estate market by the end of 2023.

Mr. Nguyen Chi Thanh - Vice Chairman and General Secretary of the Vietnam Real Estate Brokers Association - also said that positive signals from the Government's regulatory policies for the real estate market have helped customers search and listen more about the segment that meets their real needs, especially apartments.

“ Bank interest rates are showing signs of decreasing, the real estate market is being actively resolved by the Government and ministries… All these factors are positively affecting the psychology of home buyers ,” Mr. Thanh emphasized.

Ngoc Vy

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