According to data from Batdongsan.com.vn, the demand for real estate nationwide in the first 5 months of 2023 decreased by 33% compared to the same period last year, the number of real estate listings also decreased by 44%. This data partly reflects that real estate supply and demand are facing many challenges in the face of the general difficult situation of the market.
In addition, according to data from Batdongsan.com.vn, the number of people interested in buying land in the first 5 months of 2023 decreased by nearly 50% compared to the same period last year. The transaction situation in the land market is still quiet because the confidence of buyers and investors is affected and difficulties in credit limits and loan interest rates have not been completely resolved.
However, in the Real Estate Consumer Psychology Report on trends in the second half of 2023 by Batdongsan.com.vn, 61% of survey participants plan to buy real estate in the next year.
Of these, 59% have a need to buy for investment and land is the type that potential buyers are most interested in (40%), followed by apartments (28%) and private houses (21%). Thus, although the current market situation is not improving, many investors still want to own land. Therefore, the demand for land in the near future will still surpass other types.
Reasons and types of real estate to buy in the real estate consumer psychology report for the second quarter of 2023 researched by Batdongsan.com.vn.
Besides, although the market situation still has many difficulties and challenges, Vietnam is still a market with positive expectations in the long term.
In an interview with CNBC, Mr. Joe Dische, Chief Financial Officer of PropertyGuru, the group that owns the number 1 real estate technology platform in Southeast Asia, shared: “I have never been to a country where people want and care about owning real estate as much as Vietnam, a country of nearly 100 million people. This is probably the market that we are most excited about in the long term.”
He also commented that the current challenges of the Vietnamese real estate market were anticipated by PropertyGuru, however, the group assessed that these were only short-term difficulties and the market was witnessing positive signs thanks to the Government's prompt actions. These pressures will begin to ease in the second half of 2023 and early 2024.
In addition, research data on profitable investment channels in Vietnam shows that since 2015, the picture of investment in real estate, stocks, gold, foreign currency, and savings deposits has had different colors. The stock market is the investment channel that has recorded the most ups and downs during this period, however, the VNIndex as of the second quarter of 2023 still increased by 96% compared to the beginning of 2015.
Return on investment channels in Vietnam in the period 2015-2023.
Meanwhile, profits from foreign currency investments have increased by only 11% over the past 9 years. However, profits from savings deposits have continued to increase steadily, reaching a 41% increase by the second quarter of 2023 compared to early 2015.
According to statistics, gold and land recorded price increases of 90% and 69% respectively after 9 years. Surpassing all the above investment types, apartments recorded a fast and stable growth rate of profit margin (price increase rate plus rental yield) over the past 9 years. As of the second quarter of 2023, apartment investment profits have increased by 97% compared to the beginning of 2015.
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