Investors still "hold on to goods" despite being allowed to return deposits

Assessing the overall state of the real estate market in the third quarter, a recently published report by the Vietnam Association of Realtors (VARS) said that customers' and investors' confidence in the market is increasingly strengthened.

Notably, according to VARS, many investors of some projects are determined to "hold on to the goods" even though they are allowed to return their deposits and the interest incurred when the project reaches the deadline for the buyback commitment.

The market has begun to see groups of investors ready to join the hunt for bargain real estate to prepare for a new growth cycle in the near future.

Nhà đầu tư vẫn ôm hàng dù được phép trả lại cọc - 1 — Experts say the market is showing signs of recovery (Illustration: Ha Phong).

In addition, according to VARS report, industrial real estate continues to maintain its attractiveness, attracting much attention from domestic and foreign investors. The market recorded new interest from some investors from the US.

Resort real estate has not had a chance to "turn around" because Decree 10/2023 of the Government has not yet had much effect. Currently, only Khanh Hoa has recorded a move with the issuance of internal procedures to handle administrative procedures for granting certificates of ownership of condotels on commercial and service land.

The primary selling price of resort real estate has not fluctuated much, almost flat. The investor's products have to compete directly with the loss-cutting, deeply discounted products of investors.

M&A activities still maintain interest. Some investors, instead of transferring the entire project, have tried to pursue it by calling on investors to contribute capital to implement the project.

However, the VARS report also pointed out some issues that need attention and warning. Specifically, the market witnessed the reappearance of large-scale fraud, causing many people to lose money due to "ghost projects".

"This continues to be a wake-up call for amateur investors who lack information and understanding of the real estate market. At the same time, it also shows the urgency of strengthening management, supervision and accountability measures for all participants in transactions related to real estate products," the VARS report stated.

In addition, VARS also pointed out that, in addition to projects that are "frozen" due to difficulties in "determining land use fees", projects that have won bids in many localities are also at risk of being "shelved" due to winning bids at high prices.

According to Mr. Tran Van Binh - Vice President of VARS - along with legal and capital bottlenecks, "customer and investor confidence" is the "last barrier" that needs to be resolved so that the real estate market can truly return to "normal".

According to Mr. Binh, the real estate market in the fourth quarter will be a stepping stone for the transformation in 2024. The overall picture of the market will certainly have many new bright spots. Especially in areas with much room for development, with synchronous and modern planning, infrastructure that is interested in and focused on investment, and low price levels.

Sharing the same opinion, Ms. Nguyen Hoai An - Senior Director of CBRE Vietnam Hanoi Branch - said that the Hanoi housing market has begun to have more positive changes in the second quarter of this year thanks to factors such as reduced interest rates and flexible sales policies from investors.

New supply, although still limited, is expected to improve in the fourth quarter, and is likely to see better liquidity with the support of interest rates and a generally more positive home buying sentiment towards the end of the year.

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