Potential capital sources continue to grow
According to the Vietnam Real Estate Market Research Institute (VIRES), it is forecasted that in the period of 2021 - 2030, capital sources supporting the real estate market will continue to grow and develop stably, even more strongly thanks to the development of the financial and stock markets in the coming time.
Of which, credit capital is forecast to continue to grow at about 10-12%/year to ensure maintaining the economic growth rate at about 6.8-7.2%. Real estate credit growth, including housing loans and real estate business, continues to be maintained at a level equivalent to the general credit growth of the economy, at about 10-12%/year.
Equity capital of listed real estate enterprises and real estate enterprises in general is forecast to continue to increase strongly thanks to the development of the stock market, especially after Vietnam can be upgraded to an emerging market.
The real estate market absorbs a variety of capital flows, of which small investors account for a significant portion.
Bond capital issued by real estate enterprises in the coming time is expected to continue to grow strongly with a growth rate of about 20 - 25%/year. FDI capital into the real estate sector in the coming period is forecast to remain stable, with an average growth of about 5 - 7%/year in the period 2021 - 2030.
With the budget capital, it is forecasted that in the future it will continue to be maintained at a modest level of about 12 - 20 trillion VND, twice as much as the current budget capital (about 6 trillion VND) to serve the development of social housing and housing for low-income people at housing development funds in Hanoi, Ho Chi Minh City and through the Social Policy Bank as well as some designated commercial banks.
In addition, remittances are also an important source of capital in the real estate market, forecast to continue to grow steadily from 2023 and maintain an average growth rate of about 7-8%/year, expected to reach 30.9 billion USD by 2030.
VIRES also stated that although the activities of real estate investment trusts (REITs) are currently quite obscure. However, in the future, along with the development of the market, the implementation of securities laws and the development of the economy, new models of real estate investment funds suitable for the market will gradually be formed, thereby being able to develop more strongly than the current stage, playing a more active role in the capital structure of the real estate market.
When capital flows into the real estate market, the recovery process will be accelerated.
Finally, there is a huge source of capital within the people, as real estate is still considered by many to be a familiar investment channel for Vietnamese people in the context of low savings interest rates, volatile gold prices, an underdeveloped foreign exchange market and stocks that still have many potential risks. This is considered the most potential source in the period of 2020 - 2030 if there are attractive policies.
Many projects record strong liquidity
Along with the capital flow maintaining its growth momentum and showing signs of actively pouring into the market, liquidity and investor interest in real estate have also increased significantly. For example, in the Southern market, recently, many investors have begun to launch new projects and the next phases of old projects. Most of them have been well received by the market with a fairly good initial absorption rate.
Especially in areas far from the center of Ho Chi Minh City such as Binh Chanh, Binh Tan, some new apartment projects with prices in the mid-range segment, from 45-48 million VND/m2 recorded good liquidity on the first day of sale. According to some brokerage companies, there were projects in this area that received deposits for 95% of the apartments in the basket on the first day of sale.
To achieve this acceptance, the investor's preferential policies contributed significantly. With attractive policies and incentives such as interest rate support, 0% interest loans or 2-year principal grace period, "huge" discounts..., the total budget for investment has been significantly reduced. Thanks to that, the projects have attracted many investors to bring money back to the market.
The market recorded excitement during the opening ceremony of a number of apartment projects.
In addition, at the present stage, investors are also focusing on completing legal procedures to launch standard products. Thereby bringing confidence to home buyers as well as investors and promoting the market to enter the recovery phase.
A recent report by Batdongsan.com.vn also shows that the level of interest in buying apartments in the third quarter of 2023 increased by 30% compared to the beginning of the year, accounting for more than 50% of total real estate searches. In October alone, the demand for buying apartments in Ho Chi Minh City increased by 25%, and the demand for renting apartments in Ho Chi Minh City increased by 5% compared to the previous month.
According to the CBRE market research report just released, in the third quarter of 2023, the real estate transaction situation was more positive because investors proactively introduced many policies to support buyers. Although investors did not directly reduce prices on products, sales policies with many incentives helped to keep prices good. Therefore, more than 2,600 apartments were sold, reaching 55% of the newly launched apartments, nearly double that of the previous quarter.
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