On the afternoon of April 15, the Vietnam Association of Real Estate Brokers (VARS) held an event to announce the Vietnam Real Estate Market Report for the first quarter of 2024 and forecast for the second quarter of 2024.
Speaking at the opening ceremony, Mr. Tran Van Binh - General Secretary and Vice Chairman of VARS commented that real estate in the first months of 2024 has overcome the most difficult period, is recording and will record positive movements in total supply and total demand, both input and output, both micro and macro, short and medium term in policies and practices of management and business, opening up promising opportunities for the real estate market in 2024.
Evidence and basis for this optimistic forecast are the results of total FDI capital invested in real estate business activities, the number of newly established enterprises and enterprises returning to operate in the market in the first quarter of 2024. The results show that transactions in the market are also continuously increasing in scale over time.
Mr. Tran Van Binh - General Secretary and Vice President of VARS.
On the Government side, Mr. Binh said that the ministries and branches still showed positivity and high determination to accelerate and strengthen the recovery process of the real estate market, with more than 10 actions taken. In March 2024 alone, there were 2 consecutive important meetings to remove difficulties for the real estate market and production and business.
VARS leaders commented that on July 1, 2024, when some regulations in the Law officially take effect, it will certainly create a push to push the recovery process of the real estate market to a new level, higher and more obvious than in the recent past.
“The recovery process of the Vietnamese real estate market is becoming increasingly clear and optimistic with much room for further brilliant development. The real estate market will soon return to normal with increasingly transparent and clear information for all economic sectors participating in this field,” Mr. Binh affirmed.
The market has enough combos for real estate recovery.
Citing information in the report, Ms. Pham Thi Mien - Deputy Head of Market Research and Investment Promotion Consulting Department said that in the first quarter of 2024, many real estate projects were simultaneously started, with a scale of tens of thousands of hectares, up to billions of USD. Many real estate businesses have also started to prepare for the "product launch" plan.
The real estate market in Hanoi and surrounding areas has become more bustling with a sharp increase in the number of transactions, coming from both investment and real estate needs. The segment of apartments under 3 billion VND, houses in alleys with a selling price of about 4 billion VND in the inner city area are strongly "sought after".
Meanwhile, land prices have also stopped decreasing. Land products priced under 2 billion VND in the central suburbs, in provinces and cities, with guaranteed legal status, available infrastructure and utilities, have recorded a price increase of up to 40% compared to the most difficult time of the market.
In the Ho Chi Minh City market and the surrounding areas, the land segment has not had many fluctuations in the primary market. However, the liquidity of secondary land has improved, focusing on products with completed infrastructure and legal documents with prices increasing by about 3% compared to the fourth quarter of 2023.
Regarding the apartment supply, there was a slight decrease compared to the previous quarter, liquidity also improved significantly. The townhouse and villa segment recorded a price increase of about 2% - 4% in the secondary market compared to the end of 2023.
Many real estate businesses have begun to prepare for their "product launch" plans.
Assessing the bustling real estate market in the first quarter of 2024, Ms. Mien said that the current real estate market has enough "combo" ready to be a launching pad for the recovery process with support from the upper levels, the foundations from the three most influential Laws on the market, the determination of the subjects, and the increasingly consolidated confidence of customers/investors.
However, all these factors are still in the process of interacting, waiting for the appearance of a "catalyst" to be able to "react" to produce the final results.
However, the market has also had remarkable results when a series of projects with scale from hundreds to tens of thousands of hectares, even billions of USD were announced and proposed for investment; more new projects were launched on the market for the first time; investors actively renewed old projects to contribute to stirring up the market.
The common point of the projects launched in this period is standard legal status, strong investment in infrastructure, landscape and utilities, along with attractive incentive policies to increase persuasion with customers/investors.
“The first quarter of 2024 is considered a “light stepping stone” for the market to maintain its rhythm, before jumping to a new step with expectations of clearer recovery results in the following quarters,” Mr. Mien commented.
The real estate market is moving in a positive direction.
Forecasting the real estate market, Mr. Le Dinh Trung - Member of the VARS Market Research Working Group, General Director of SGO Homes said that in the coming time, macroeconomic management policies will continue to impact the real estate market.
Specifically, the Government, relevant agencies, ministries and sectors will continue to make efforts to complete and issue a Decree detailing the implementation of the Housing Law, Land Law and Real Estate Business Law as soon as possible. Bank interest rates continue to remain stable at a low level.
The government will also continue to promote the removal of difficulties and the development of the social housing segment. New moves will be increasingly deeper and closer. Continue to promote local planning, focus on public investment disbursement, and create momentum to promote socio-economic development. Compared to the previous period, investors will spend more time considering the decision to invest in infrastructure.
Meanwhile, the expert said that the cash flow maturing at banks has begun to look for investment channels that bring more attractive profits, including real estate, especially land products with not too high investment value and great profit potential.
Mr. Le Dinh Trung - Member of VARS Market Research Working Group, General Director of SGO Homes.
With the above efforts, Mr. Trung believes that the recovery process of the real estate market continues to develop in a positive direction. All changes will take place gradually and steadily based on the previous recovery and accumulation momentum, along with the support of economic growth and urbanization development.
Recovery results are still differentiated by segment and region similar to Q1/2024.
“After going through a “life-threatening illness”, the surviving entities will have “antibodies”. Cash flow from high-potential channels will boldly seek out the real estate market in larger quantities and with easier access. The number of entities ready to re-enter the market will increase”, Mr. Trung likened .
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