Real estate market will recover slowly, land is the top choice

Land products in areas with good infrastructure and recent price reductions are also expected to restore liquidity.

Bất động sản mới nhất: Đất nền TP. Hồ Chí Minh. (Nguồn: CafeF)

According to a survey on the level of interest in real estate, land plots stand out as the top choice, accounting for 40%. (Source: CafeF)

Reports from many real estate market research units predict that the mid-range real estate segment will be a bright spot for recovery this year, as positive signals have appeared in the second half of 2023. The shortage of supply and low interest rates will stimulate demand in this segment thanks to large real demand.

Research data from a real estate information site recently released shows real estate trends in the second half of 2023. According to a survey on the level of interest in real estate types, land plots stand out as the top choice, accounting for 40%, followed by apartments (28%) and private houses (21%).

The survey also showed that up to 61% of people (over 1,000 people surveyed) are planning to buy real estate within the next year, mainly for investment. Land continues to be the top choice, accounting for 40% of the survey opinions.

Mr. Nguyen Quoc Anh, Deputy General Director of Property Guru Vietnam Joint Stock Company, predicts that the real estate market will show signs of recovery from 2024, but the level of real estate recovery will be slow and different for each type.

Mid-range and affordable apartments will recover first because they meet the needs of the majority of home buyers. Land and townhouses may be slower in the second and third quarters of this year. The recovery of resort and commercial real estate depends on the growth trend of the economy, tourism and services, and may last until the end of this year.

According to him, products that meet real housing needs, have average prices and flexible payment plans will quickly recover in the market. Land products in areas with good infrastructure and recent price reductions are also expected to restore liquidity.

Emphasizing that land in many areas has prices that are accessible to investors, and noting a sharp decline in prices recently, an average decrease of 22%, the expert commented: "Most of the land being sold at a loss comes from speculators using financial leverage and unable to repay debts. This creates good profit opportunities for medium and long-term investment strategies."

Forecasting the real estate market picture this year, Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Real Estate Brokers (VARS), assessed that next year will be a challenging year for the real estate industry.

However, this year also opens up a great opportunity to revive the real estate market when 31/63 provinces and cities have announced their planning. Next, changes in the law and investment focusing on the actual needs of customers will be the key to the sustainable development of the market in the future.

Giving an assessment of each real estate segment this year, Ms. Duong Thuy Dung - CEO of CBRE Vietnam - said that segments with prices closer to the affordability of buyers will recover faster and are also the segments with the earliest recovery potential.

According to her, the mid-range and low-end apartment segment will see the first upward movement around the third quarter of this year. For high-end and luxury apartments, the quality of products or projects will be improved to meet the needs of customers who are willing to pay.

In addition, the housing market, including the land segment or the segment of projects attached to land such as villas, townhouses, townhouses, etc., will still be a segment that is very popular with people because of the privacy of this type compared to apartments. However, these products have quite high value, so the recovery of this market will be slower than the apartment market. It is predicted that by 2025, this market will have a clear recovery.

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