According to DKRA's report on the real estate market in Ho Chi Minh City and surrounding areas in October 2023, new supply and consumption have shown signs of improvement, 3.8 and 4.8 times higher than the previous month, respectively. The new supply comes from a project opening the next phase with 203 plots, with new consumption recorded at 29 plots.
During the month, all new supply was concentrated in Trang Bom district (Dong Nai) with selling prices ranging from 9.2 to 29.3 million VND/m2. Meanwhile, the primary price level did not fluctuate much compared to the previous launch, with most transactions concentrated in the product group with an average price of about 11.2 million VND/m2. Discount policies, profit commitments, buyback commitments, etc. continued to be applied by investors to stimulate market demand.
New supply and consumption of land in October 2023 (Photo: DKRA)
The secondary market also recorded an average decrease of 3% - 5% compared to the previous month, the decrease was mainly concentrated in high-value products, projects with incomplete infrastructure, legal documents, etc. Market liquidity remained at an average level. It is expected that supply and consumption in the last months of the year will maintain a horizontal trend and will mainly concentrate in neighboring markets such as Dong Nai, Binh Duong, Long An, Tay Ninh,
However, positive signals about the volume of sales and interest in the market also show the development potential of this type in the short term. According to the October 2023 real estate market report of Batdongsan.com.vn, the number of advertisements for sale and the demand for buying land in the suburbs are showing signs of growth again.
Accordingly, the number of searches for land in Long An increased by 12%, Binh Duong increased by 13%, Ba Ria - Vung Tau increased by 19%, Can Tho increased by 19% and Ho Chi Minh City increased by 13% compared to the previous month.
The demand for buying and selling land in the suburbs is mainly for small plots of land, worth less than 2 billion VND. In general, the land market in higher price segments is still gloomy. Many valuable plots of land have been reduced by 20-30% but have not been traded yet.
"Soft price" land recorded more transactions than the rest.
According to the report of the Vietnam Real Estate Brokers Association, the segment of land with red books and commercial housing under 2 billion VND has a clear increase in transaction volume, especially in areas with infrastructure investment or areas adjacent to industrial parks with selling prices increasing by 5-7% compared to the previous quarter. This is also the only bright spot segment of the land type, because with land with prices ranging from 3 billion VND/plot or more, the transaction situation is still quite gloomy.
Mr. Le Bao Long, Strategy Director of Batdongsan.com.vn, said that customer sentiment has improved. The rate of real estate searches by customers has increased, especially in the affordable segment. The market is going through a difficult period and is expected to gradually recover from 2024.
As for suburban land, this segment is expected to recover later, around the end of 2024 due to the difficulty of strong investment demand growth. The land market is considered to be able to return to normal orbit when the economy is more stable and the legal corridor is more open.
In addition, many experts believe that in the coming time, the recovery of the land market will be greatly influenced by the Land Law (amended), the Real Estate Business Law (amended) and the Housing Law (amended) expected to be passed by the National Assembly at the ongoing 6th session. When synchronous mechanisms are put into practice to help remove obstacles for market development, it will help the market begin its journey of strong recovery.
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