Supply increases, transactions improve
At the "Vietnam Real Estate Market Forum 2024 - Overcoming Challenges" recently held, real estate experts cited data showing that in the fourth quarter of 2023, about 7,000 products were launched on the market for the first time. The absorption rate improved with the number of transactions of about 5,700 products, equivalent to the third quarter of 2023, maintaining a good growth momentum compared to the first two quarters of the year.
Good quality apartment projects are always sought after, typically The Matrix One project of MIK Group in Hanoi.
Towards the end of the year, supply improved in quality and quantity. In the fourth quarter of 2023, many large-scale sales programs of project developers, which had been absent from the market before, reappeared and attracted investors and customers.
The Southern region with key markets of Ho Chi Minh City and neighboring provinces: Long An, Dong Nai, Binh Duong, Ba Ria - Vung Tau... is considered the most prosperous when a series of investors started and restarted projects, following the construction of key traffic works, airports, and international seaports. Transactions were recorded to have improved significantly compared to previous quarters.
Market developments, according to experts, show that a series of Government policies implemented in 2023 have been effective, restoring investor confidence.
With the Government assigning the State Bank to direct commercial banks to have appropriate solutions, reduce costs to reduce interest rates, home loan interest rates have cooled down significantly recently. The common level on the market is currently 6%/year to 10%/year, preferential for 3-6 months and increases to 10.5% - 13%/year when the preferential period ends.
At the same time, the fourth quarter of 2023 is also the time when the market receives large cash flows from remittances, securities and savings deposits, especially in the context of deposit interest rates hitting rock bottom as in the past.
Investor stimulus efforts
The confidence of customers to invest in this period is also strengthened by an important driving force from investors themselves. In addition to the products increasingly meeting the actual needs of buyers, most of the projects for sale are carefully prepared in terms of legality, and the effort to warm up the market is also reflected in a series of attractive stimulus policies.
Imperia Grand Plaza Duc Hoa project has attracted the attention of investors since its launch.
Previously, when the project was handed over, the interest rate support policy from the investor would expire, but now, home buyers can still find projects in the handover phase that are still supported with 0% interest. The payment value is also being reduced, instead of 30% of the product value as before, now only 10% - 20% is needed to "pack your suitcase and move in immediately". The payment installments are also divided into smaller installments, from 10% down to 1% - 5% each time, helping buyers relieve some financial pressure.
For example, at the Glory Heights apartment project in Vinhomes Grand Park (Thu Duc city, Ho Chi Minh City), customers only need to pay 1%/month and receive the house after 2-3 years. The investor Masterise Homes launched a program that requires only a 20% payment to be able to "move in" at Grand Park, the remaining 80% of the value is supported by a bank loan, with an interest rate of 0% until April 2025.
Special sales policies are also applied by investors of townhouse and villa projects. In Binh Duong, the investor An Gia of The Standard project has handed over to customers who pay 10% to be able to receive the house immediately, the investor supports the remaining payment in 24 months. In addition, this investor also commits to rent some townhouse and shophouse products to buyers.
In Long An, Imperia Grand Plaza Duc Hoa, the latest project of MIKGroup in the suburban market of Ho Chi Minh City with a chain of commercial townhouses (shophouses) is also attracting attention thanks to a series of special preferential policies. Customers can own a shophouse with an amount of only 450 million VND and receive preferential interest rate support for up to 42 months, principal grace period of 48 months. Customers are given and completed interior package for the shophouse by the investor, and supported with a rental of 30 million/month for 36 months.
The series of events welcoming the New Year 2024 on 3/2 Street - Long An welcomed more than 80,000 visitors in December 2023.
Located in the center of Duc Hoa district, a locality expected to be upgraded to a city in 2025, Imperia Grand Plaza Duc Hoa is a chain of commercial townhouses divided into East Street with contemporary Asian architecture, Central Street with unique Indochinese architecture and West Street with neoclassical European architecture.
These streets are now new entertainment destinations for people in Duc Hoa and neighboring areas. The Christmas and New Year 2024 activities organized by the investor recently attracted tens of thousands of participants. Currently, the programs to welcome the Giap Thin Spring held on weekends are also equally attractive.
Real estate experts assess that customers are increasingly demanding of projects in terms of legality as well as investor support policies. Projects that meet these requirements will be given priority, in addition to the factor of future profit potential.
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