Vietnam's real estate market in 2024 has overcome the difficult period

Market picture Q1 2024

The Vietnam Association of Realtors (VARS) recently held a conference on “Announcing the Vietnam Real Estate Market Report for the first quarter of 2024 and Market Forecast for the second quarter of 2024” and a discussion on “Vietnam Real Estate Market – Ready to re-enter the market?”. At the event, experts commented that real estate in the first months of 2024 has overcome the most difficult period, opening up promising opportunities for the real estate market in 2024.

Ms. Pham Thi Mien, Deputy Head of Market Research, Consulting and Investment Promotion Department of VARS, said that land and residential land are the segments with the most positive movements. However, the above trend is not uniform in localities, with the North showing more positive signs than the Central and Southern regions. In particular, Hai Phong, Hanoi, Bac Giang, Hai Duong, Da Nang, Binh Duong, Long An, Dong Nai and Can Tho are bright spots.

Looking at the real estate market in the first quarter of 2024, according to VARS research, the housing supply in the first quarter of 2024 reached 20,541 products. Of which, 4,300 are completely new products, the rest are inventory from previous sales phases. Many real estate projects have also started construction. Many real estate businesses have also begun to prepare for "product launch" plans.

Affordable apartments increased by more than 70% compared to the fourth quarter of 2023, reaching 1,250 products, and 100% of this supply came from social housing projects in provinces and cities. Meanwhile, the supply of luxury apartments is catching up and tends to surpass mid-range apartments. There were 6,200 transactions, an increase of 8% compared to the fourth quarter of 2023 and double the same period last year.

The absorption rate continued to improve, reaching nearly 31%, up 5% compared to Q4/2023 and 19% compared to the same period last year. High-end apartment projects priced under VND50 million/m2 are sought after. High-end apartment projects in the luxury segment have slower absorption.

Primary selling prices continued to maintain a stable trend with an increase of about 2-3% compared to the previous quarter. New low-rise projects and land plots have quite reasonable prices. The apartment segment still maintains an upward price trend.

Ms. Pham Thi Mien, Deputy Head of Market Research, Consulting and Investment Promotion Department of VARS presented about market movements at the conference.

“The first quarter of 2024 is a light stepping stone for the market to maintain its rhythm before moving to a new phase. Over the past time, the market has accumulated enough for the recovery process such as the trio of new laws and positive investor sentiment,” said Ms. Mien.

However, although she believes that the market recovery will continue to develop in a positive direction, Ms. Mien believes that the upcoming recovery results will still be differentiated by segment and region as in the first quarter.

Beware of "virtual" fevers

Regarding suburban land, Ms. Pham Thi Mien said that many areas have recorded a "sudden" increase in land transactions, especially in subdivided plots. More investors are "hunting" for land in the suburbs of big cities, localities with strong infrastructure development and high urbanization rates. The price of successful transactions has decreased by 20-30% compared to the peak.

However, the market also recorded some areas with the phenomenon of “unfounded price increases”. Therefore, it is necessary to pay close attention to avoid the formation of “virtual” fevers, causing risks of insecurity, when the market is still in the process of recovery.

In many areas, suburban land plots recorded a "sudden" increase in land plot transactions.

Mr. Nguyen Van Dinh - Chairman of VARS further assessed that in the first months of the year, the market recorded a phenomenon of increasing prices of apartments, land, and residential land in some areas. However, he said that in the context of the economy not really escaping difficulties, only showing signs of recovery, people's income and employment are not stable, the sharp increase in prices is unusual, a sign of a bubble.

“The sudden and unfounded price increase is considered to have signs of impact, creating confusing information from speculative groups pushing up prices and inflating prices for profit. Therefore, buyers and real estate investors need to be alert, choosing products that are suitable for their financial capacity and legal guarantee. Absolutely do not follow the 'fever' or the crowd movement.

In order not to affect the market recovery process, investors also need to adjust selling prices to a reasonable level and strictly control distribution channels," Mr. Nguyen Van Dinh noted.

N.Giang

Source: https://www.nguoiduatin.vn/thi-truong-bat-dong-san-viet-nam-2024-da-vuot-qua-giai-doan-kho-khan-a659245.html