Customers are bustling to find houses, brokers are excited to "close" deals
In 2022, the Covid-19 epidemic was gradually controlled, feeling the need to settle down, Mr. Nguyen Hoang Vu (23 years old) decided to find a small, affordable apartment to buy.
Consulting many trading floors and exchanging with many brokers, Mr. Vu realized that from July 2022 to the end of 2022, apartment prices compared to the general level of other real estate products on the market as well as the same period last year were quite high.
The reason was that at that time the real estate market was almost "frozen", there were not many new construction projects, the old projects were degraded and past the peak price period, so buying would not be effective.
In particular, the issue that worried Mr. Vu the most was the strong fluctuations in the real estate market at that time, with a lot of unfavorable information on the market, making Mr. Vu very hesitant in buying and selling a house.
The handover ceremony of the project is located in Tay Mo, Hanoi.
Therefore, it took Mr. Vu more than half a year of consideration and calculation before he decided to spend money to buy a 2-bedroom apartment in Tay Mo, Hanoi, which, according to his assessment, with its location, infrastructure, amenities and legal status, met all the criteria he set out.
“I feel that the amenities of this apartment are worth the 3 billion VND spent for 55 square meters, not to mention the project's complete legal documents also make me feel secure in putting down my money. Because I paid in one go, I was exempted from service fees and parking fees for 3 years, not to mention that after more than half a year of buying the house, the value of the house has increased to nearly 400 million VND,” Mr. Vu shared with Nguoi Dua Tin .
After receiving the house, realizing that the project had growth potential and a solid legal foundation, Mr. Vu decided to buy another apartment in the same building for rent. The total amount of money Mr. Vu had to spend to buy the two apartments above was 5.9 billion VND, equivalent to an average price of about 54.5 million VND/m2.
Apartment prices are constantly increasing and the demand for buying and renting this type of property is always high.
After almost no transactions in 2022, real estate broker Nguyen Van Linh said that from the second quarter of 2023, customers started looking for real estate and by the beginning of the third quarter of 2023, he was able to "close" a house for a customer.
In early November 2023, Mr. Linh shared that the number of customers searching for real estate increased sharply, the number of customers proactively seeking advice from brokers and directly visiting houses also gradually showed signs of recovery.
As of early November 2023, according to the market assessment of the Vietnam Association of Realtors (VARS), the idle cash flow among the people, although not much, has begun to return to investing in real estate.
According to the Real Estate Market Report of the Ministry of Construction, the transaction volume in the market is improving every quarter. The transaction volume is recovering thanks to the gradual “absorption” of a series of drastic support measures from the Government and a part of the cash flow returning due to the decrease in interest rates.
In the first 9 months of 2023, the transaction volume was only about 50% compared to the same period last year. However, in the third quarter of 2023 alone, nearly 6,000 transactions were recorded, 1.5 times higher than the second quarter of 2023, more than twice as high as the first quarter of 2023. However, it was still only about 10% compared to the time before the Covid-19 pandemic.
Statistics also show that nearly 90% of transactions are apartments from projects developed by reputable investors, in urban areas that have come into operation in big cities.
Lower interest rates help increase demand
Sharing about the price of the apartment segment in the real estate market, Mr. Le Bao Long - Strategy Director of Batdongsan.com.vn commented that apartment prices in the coming time will hardly decrease deeply because products serving real housing needs are still the bright spot of the market.
According to Batdongsan.com.vn's Real Estate Market Report for the third quarter of 2023, apartments are the type of real estate least affected by the negative impacts of the market in the past year because this type serves real housing needs.
During the period, the level of interest in apartments showed signs of recovery, with demand for buying apartments increasing by 1% and for renting apartments increasing by 6% compared to the previous quarter. Of which, apartments priced from 2 to 4 billion VND were the most searched. After 8 years, apartment prices in Ho Chi Minh City and Hanoi increased by 82% and 56% respectively, while the income of people in urban areas increased by only 39%.
Profits of some investment channels (Source: Batdongsan.com.vn).
“Because apartment prices are constantly increasing and the demand for buying and renting this type of property is always high, the average profit rate when investing in apartments is up to 12.5%/year, so this is a better and more stable profit rate than other types of investment such as stocks, gold, foreign currency, land, and savings,” said Mr. Long.
Assessing the general market situation, Dr. Pham Anh Khoi - Chief Economist and Director of the Dat Xanh Services Institute for Economic - Financial - Real Estate Research (DXS - FERI) said that the period of "cutting losses", shocking discounts, huge incentives... of real estate investors to attract customers is over.
At present, the real estate market has recorded a return of cash flow from customers and investors, and the number of real estate transactions has grown significantly.
“Projects that meet real needs, have reasonable prices, flexible payment schedules and are legally compliant are always sought after. Real estate is still chosen by many investors as a safe haven for cash flow,” said Mr. Khoi.
Director of DXS – FERI, Dr. Pham Anh Khoi.
Accordingly, the Director of DXS – FERI analyzed that recently the Government has made many drastic moves to improve the market, just lowering interest rates alone has had a huge impact on home buyers, helping to increase demand in the market.
However, for customers to be willing to pay for real estate products at this time, Mr. Khoi assessed that it depends largely on the project developer. Products from reputable investors with good quality will certainly reach customers easily .
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