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| Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn presented at the Workshop. (Source: VRES 2023) |
At the Conference, Mr. Bach Duong, General Director of Batdongsan.com.vn said that VRES 2023 took place in the context of the real estate market going through a challenging year and this is an opportunity to look back and evaluate as well as propose solutions from all aspects including technology, project development, buyer needs and trends, and policy impacts.
According to Mr. Bach Duong, the demand for real estate ownership among Vietnamese people is always present. The report on real estate consumer psychology and trends (CSS) in the first half of 2024 by Batdongsan.com.vn clearly stated that 65% of respondents plan to buy real estate in the next year. Of which, 60% buy for investment. Land is the type of property that potential buyers are most interested in (33%), followed by private houses (26%) and apartments (24%).
Also at the conference in Hanoi, VRES 2023 focused on reports and presentations revolving around major issues in the real estate industry. Highlights include: major trends that are taking place and will lead the market; new policies and impacts from law adjustments; shifts in real estate segments and types; current situation and solutions regarding capital and credit sources; consumer psychology and preferences.
Sharing about the trends shaping the future of the real estate industry, Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, commented: "The market is and will depend on certain shifts. In particular, buyers and investors are more demanding in terms of quality and legality of projects. They tend to use more data to make decisions. These are data with many years of history on price fluctuations, investment profits and supply - demand. When customers have more information and become wiser, investors and real estate businesses also need to rely more on data and market research to offer quality products at suitable prices," Mr. Quoc Anh analyzed.
Mr. Nguyen Quoc Anh also predicted that products serving real housing needs such as apartments and private houses will be prioritized in investors' portfolios because they can generate regular cash flow and maintain stable price levels. He cited the fact that apartments have had a fast and stable rate of profit growth (price growth rate plus rental yield) over the past decade.
Data from Batdongsan.com.vn shows that as of the second quarter of 2023, apartment investment profits increased by 97% compared to early 2015.
In addition, experts also believe that new points in the Law on Real Estate Business (amended) and the Law on Housing (amended) will impact the real estate market. One of the regulations that many market members are interested in is the tightening of land subdivision.
Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the Southern region, assessed: “In the coming time, it is likely that the land price level will be adjusted down, especially for large plots of land. However, in the long term, land prices may continue to increase and transactions will return. Because real estate prices depend on other factors such as infrastructure development, economic growth, and people's income. Meanwhile, land is a type that any member of the market can invest in due to the diversity of area, price, and region. In localities with economic growth rates, land plots in these places will still grow sustainably."
Another notable regulation is that real estate project investors are only allowed to collect deposits of no more than 5% of the selling or lease-purchase price from customers when the house or construction project has met all conditions for being put into business.
Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, commented that this will help future projects to be of better quality and ensure the rights of home buyers. However, the regulation also poses challenges for investors in mobilizing cash flow to build projects. "The government needs to have measures to support investors, especially in procedures such as applying for licenses or borrowing capital, to both ensure sustainable supply and create a safe environment for buyers," he suggested.
Forecasts, in-depth analysis and information on real estate market developments were also shared more specifically at VRES 2023 in Hanoi this time with the participation of speakers: Mr. Bach Duong (General Director), Mr. Nguyen Quoc Anh (Deputy General Director), Mr. Dinh Minh Tuan (Director of Southern Region), Mr. Le Bao Long (Director of Strategy) and other prestigious experts from leading economic and real estate organizations including: Mr. Can Van Luc (Economist of BIDV), Mr. Nguyen Van Dinh, Chairman of Vietnam Real Estate Brokers Association, Mr. Nguyen Quang Thuan (Chairman of FinnGroup)... thereby helping investors and businesses assess the market situation and develop appropriate business strategies in the next stage.
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