Apartment demand will skyrocket after August 1, 2024

At the 7th session, the National Assembly passed three laws related to the real estate market, namely the Land Law, the Housing Law and the Real Estate Business Law, which will take effect from August 1, 2024, five months earlier than the previously decided date.

The Government also affirmed that there is a sufficient basis for the issuance of detailed regulations and implementation guidelines to ensure progress and quality. With this special support, a synchronous legal corridor will be created, promoting the real estate market in the country in general and the capital in particular to develop safely, healthily and sustainably. It is forecasted that in 2025, there will be a clear recovery in terms of supply, product quality and selling prices.

Scarce supply, "launched" projects are sought after

Mr. Tran Hieu, Deputy General Director of DKRA Group, said that one of the important contents of the 2024 Land Law is to remove the land price framework. The principle of land valuation according to the market can cause real estate to continue to increase, because then the compensation for site clearance will increase sharply. Not to mention the costs such as land use fees and transfer taxes are increasing and becoming stricter, leading to an increase in the total investment cost of the project.

Mr. Hieu also said that the demand for housing is increasing, while it is very difficult to carry out projects at this time. Partly it is difficult to find land to develop the project, partly the procedures are lengthy, while input costs such as construction materials, labor costs, interest costs, land prices, etc. are all increasing.

“ When the tide rises, so does the boat. New projects will have increasingly shocking prices and it is understandable that apartment projects that have been or are under construction are sought after,” said an investor.

In fact, the race to find listings in areas with ongoing projects is extremely "fierce". Mr. Cong - a veteran broker specializing in the Western region - often stands guard at the entrance to the apartment project site in the center of the metropolis, because the number of visitors to the project to learn about it has increased dramatically.

According to this broker, Hanoi is not a small market, but in recent days, almost all sales people have been constantly "bumping into" each other at the same "strongholds" which are construction sites and product introduction boards. Cong is just one of hundreds of brokers "gathering" around the rare remaining apartment project in the core area of ​​the West.

The Sola Park is one of the focal projects in the West of Hanoi today.

“ There are only a few projects around, and Nam Tu Liem, Long Bien and Hung Yen are still the areas that attract the most sales. There are days when we go to a few places to ‘reserve’, compete for product lists, and meet agents, and everywhere we go, we meet the same number of familiar faces,” said this broker.

Mr. Le Dinh Chung - General Director of SGO Homes Real Estate Investment and Development Joint Stock Company said that since the end of the second quarter of 2024, the number of customers deciding to spend money to buy real estate has increased significantly to take advantage of cheap loans being launched by banks to ensure credit growth targets in 2024.

In the second quarter of 2024 alone, according to VARS's report, the entire market recorded more than 14,400 successful transactions, an increase of 2.4 times compared to the previous quarter; in which, the apartment segment "carried the team" in terms of both liquidity and price increase. Each new apartment project about to be launched is likened to a "cooling rain" for market demand.

For example, at The Sola Park - a rare apartment project of MIK Group in the West, the strength of multi-level connection location, hundreds of perfect utilities for life and a wide range of apartments to meet all living and rental investment needs makes this project creating a storm in the market, as well as the race to win the "hot" product list of brokers.

According to data from Batdongsan.com.vn, the selling price of apartments in Hanoi, although increasing rapidly recently, is still the lowest compared to other major cities in the region. For example, in Singapore, the price of an apartment is 415 million VND/m2, in Hong Kong 645 million VND/m2, in Tokyo 215 million VND/m2, Bangkok 162 million VND/m2, while in Hanoi the average price is only 50 million VND/m2.

With the 2023 Housing Law opening the door for foreigners and overseas Vietnamese to own real estate, the demand for apartments from a large number of foreigners will certainly increase sharply after August 1, 2024, especially in large projects that have formed "United Nations residential areas", Korean and Japanese neighborhoods such as Vinhomes Smart City, The Mirea Park or The Sola Park...

Source: https://www.congluan.vn/suc-cau-can-ho-se-tang-vot-sau-thoi-diem-182024-post305554.html