2023 is considered an extremely difficult year for the real estate market. Sharing with PV. VietNamNet, Mr. Vu Cuong Quyet, General Director of Dat Xanh Mien Bac, said that with the timely intervention of the Government, real estate businesses have been able to defer debt, extend bond debt,... in time, avoiding collapse.
According to Mr. Quyet, in the third and fourth quarters of 2023, deposit interest rates will decrease, and home loan interest rates will also decrease to around 8.5-9%. By the end of the fourth quarter of 2023 to the beginning of the first quarter of 2024, loan interest rates will continue to decrease to around 7.5-8%, making it easier for buyers to access loans from banks.
Since then, the market has shown quite good signs with real estate segments such as apartments in Hanoi and the provinces.
Although some investment segments are still facing difficulties due to the psychology of hesitation and waiting for prices to decrease, by the end of 2023, some markets such as Hanoi have not decreased in price, and in some places, prices have even increased slightly in land plots and adjacent villas. The trend is improving, but liquidity is still weak.
“In January 2024, the Land Law was officially passed, affecting investor sentiment. They are starting to re-examine markets and investment segments, including land. We expect the real estate market to be better in 2024, although there has been no breakthrough yet,” said Mr. Quyet.
To anticipate the market recovery, the leader of Dat Xanh Mien Bac excitedly said: “From the beginning of this year, we have reopened offices in the markets of Bac Ninh, Bac Giang, Thai Nguyen, Hai Phong, Quang Ninh,... markets that we were forced to close en masse in early 2023. It is predicted that some industrial cities in the North this year will be better than last year”.
According to this leader, the real estate segment has been a "rescue" for distribution units, especially apartments in Hanoi and the provinces of Bac Ninh, Bac Giang, Thai Nguyen, Vinh Yen (Vinh Phuc). In 2024, the apartment segment in Hanoi and the provinces will still be good. Along with that, the land segment will begin to return, especially in industrially developed cities.
“The recent policies are quite close to the reality of businesses, helping the real estate market stabilize and improve. However, for the law to come into practice, there need to be specific guiding circulars and decrees. Hopefully, the guiding documents will be issued soon so that in early 2025, when the laws come into effect, they will be implemented smoothly,” said Mr. Quyet.
Expecting that the market will fully recover by the second quarter of this year, Ms. Le Thu Ha, Chairwoman of the Board of Directors of Ha An Group, said that according to the plan, the company will continue to develop real estate products for both residence and business in the Quang Ninh market. For apartments, the price ranges from 38-45 million VND/m2; and for villas, it ranges from 100-150 million VND/m2.
“It is expected that in the third and fourth quarters of 2024, we will continue to launch new shophouse projects, targeting investment customers, with prices ranging from around 10 billion VND/unit. Quang Ninh is a city with convenient traffic infrastructure, attracting tourists... so real estate investment is quite stable. This is also the reason for the company to focus on investing in project development in this province's market,” Ms. Ha shared.
Mr. Pham Minh Duc, Deputy General Director of Tan A Dai Thanh Group Real Estate JSC - Meyland, said that 2024 will still be difficult but will be the final stage of the real estate "freezing" process thanks to macro policies and the new legal system on real estate. However, according to Mr. Duc, although real estate legal policies have been improved, more important is the law enforcement process, especially in local governments.
Over the years, many businesses themselves have shared that it is not the interest rate issue, but the removal of policy mechanisms that is what real estate businesses desire most.
“In reality, the life cycle of real estate projects often spans many periods of legal change. This is a common problem that makes the process of applying the law and applying transitional regulations sensitive and is the main reason why many projects are delayed. I hope that in 2024, the Government and ministries will soon issue decrees and circulars to thoroughly remove existing problems and support businesses,” said Mr. Duc.
Meanwhile, Mr. Nguyen Van Hau, General Director of Asian Holding Real Estate JSC, said that some experts predict that 2024 will still be a difficult year for real estate. However, important laws on real estate that have been passed will have a positive impact on investor sentiment.
Sharing about the new year business plan, Mr. Hau said that the company will continue to M&A projects in Dong Nai and Binh Phuoc areas. Along with that, the unit will also focus on developing market share in Ho Chi Minh City.
“When the real estate market recovers, the real estate segment will take the lead. Anticipating this trend, we are looking for investors to develop apartment projects in the Ho Chi Minh City market,” Mr. Hau revealed.
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