Demand for real estate increases
According to data from batdongsan.com.vn, compared to the beginning of 2023, the real estate market at the beginning of this year showed more positive signs in terms of both interest and the number of listings from real estate buyers. The demand for real estate for sale nationwide in January 2024 increased by 66% compared to the same period in 2023, and the number of real estate listings also increased by 52%.
In the South, from the end of 2023 until now, a series of real estate giants have strongly started and prepared for new sales projects.
In Binh Duong, a series of projects have started construction since the beginning of 2024, such as Phat Dat's project in Thuan An, Sycamore of Capitaland (Singapore), Picity Sky Park project of Pi Group, Phu Dong SkyOne of Phu Dong Group, A&T Sky Garden project of A&T Group. In Ho Chi Minh City, Gamuda Land Group (Malaysia) is also launching the Eaton Park project in Thu Duc City, which is over 3.6 hectares wide. Nam Long and Masterise Homes are also preparing to launch new projects.
The market has shown positive signs, projects targeting real housing needs still have transactions.
Customer interest in new projects has also skyrocketed. According to the investor of the Picity Sky Park project, in just 6 months since its launch in the third quarter of 2023, the project has recorded nearly 10,000 customers visiting the model home and attending project introduction events. This is quite an impressive number in the context of a newly recovered market.
Ms. Tran Thi Cam Tu, General Director of EximRS Company, said that the Hanoi market is trading better than the Ho Chi Minh City market. Right from the end of 2023 and the beginning of 2024, the Hanoi market has shown many positive signs, in which the apartment segment is having good liquidity again. Hanoi is currently the second most populous city in the country with more than 8.4 million people. Housing demand continues to increase, it is expected that by 2025, Hanoi will lack about 166,600 apartments to meet the needs of people living here. In particular, after the Housing Law (amended) was passed, apartment transactions are heating up every day. Because in the past, people were often afraid that after 50 years they would no longer have ownership of the apartment, but the new law does not stipulate this and remains the same. Therefore, projects with good prices, high-quality handover and complete legal documents will be of interest to many customers.
The market will recover positively from the second quarter of 2024
According to Dr. Can Van Luc, member of the National Financial and Monetary Policy Advisory Council, starting from the second quarter of 2024, the real estate market will recover more positively with many optimistic signals. First, Vietnam's economic growth in 2024 will be higher (from 6 - 6.5%) than in 2023 (5.05%). Second, newly issued policies and laws are gradually permeating into life, including the Land Law, Housing Law, and the amended Real Estate Business Law that have been passed and are gradually being guided for implementation.
Third, interest rates have fallen significantly for both old debts and are more suitable for the borrowing needs of people and businesses in the new context. Fourth, violations related to the stock, bond and real estate markets have been basically resolved. Fifth, investor and market confidence is gradually recovering, as shown by the gradual increase in real estate supply, real estate transactions and corporate bond issuance.
Finally, in recent times, real estate businesses have made great efforts to restructure operations, cut costs, and reduce product prices. At the same time, they have successfully negotiated with bondholders and investors to extend, postpone and repay debts.
Many expect the market to recover in 2024
Mr. Nguyen Quoc Anh, Deputy General Director of batdongsan.com.vn, also assessed that the Vietnamese real estate market will enter a period of prosperity from the second quarter to the fourth quarter of 2025. He expects this period to record strong economic growth and increased investment capital in the real estate sector. The financial potential of investors and the improved monetary environment will lead to a recovery in supply and liquidity on a large scale, and real estate prices in this period will also improve along with supply and liquidity.
With a lot of information and positive changes, experts predict that 2024 will be a prosperous period for real estate thanks to the total leverage from many factors such as reduced interest rates, open legal regulations and especially the push from unprecedented stimulus policies of investors.
The advantages are clear, but in reality, the real estate market is still quite gloomy for many reasons. Among them, economic difficulties, reduced income and low market liquidity, real estate prices are too high, making many people still not willing to spend money at this time.
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