Apartment market in the first quarter of 2024: For every 100 units sold, customers 'close' 57 units

On April 21, a representative of the Vietnam Association of Realtors (VARS) said that as of mid-April 2024, a series of investors were starting construction and opening sales of many real estate projects. Some projects with good progress have officially received deposits from customers.

The absorption rate of new apartments has been more positive recently. (Photo: Dai Viet)

According to VARS, in the first quarter of 2024, the housing segment welcomed more than 20,500 products for sale, including more than 4,300 completely new products. Housing transactions continued to grow with 6,200 transactions, an increase of 8% compared to the fourth quarter of 2023 and double that of the same period last year.

In the apartment segment alone, VARS recorded more than 3,000 new apartments launched on the market with an absorption rate of 57%. Thus, for every 100 new apartments, 57 were sold.

Mr. Nguyen Van Dinh, Chairman of VARS, shared that the lending interest rate at its lowest level in the past 20 years in the context of the economy entering the recovery phase is not only an opportunity for businesses to develop projects, but also makes it easier for people to buy houses.

He said that although many people are still concerned about the floating interest rate after the promotion, the average floating mortgage interest rate is currently only around 9 - 11%/year, down about 4% compared to the previous interest rate.

In addition, many banks have coordinated with investors to launch policies with a commitment to a maximum interest rate ceiling, so home buyers will avoid risks related to floating interest rates.

“Loan interest rates are remaining stable, including home loan interest rates, with loan terms of 25-30 years, reducing the monthly repayment pressure for borrowers. In addition, banks are still actively saving costs to reduce interest rates in accordance with the State Bank's directive. This is a very favorable condition for the real estate market to recover," said Mr. Dinh.

VARS experts believe that lending interest rates will continue to decrease in the coming time.

Regarding investment needs, after a period of carefully observing market developments, people and investors have begun to show interest in the real estate market again. However, investors' "risk appetite" has changed after previous lessons.

VARS believes that customers and investors have become more cautious and calculating when spending money. They are willing to spend time and money to check the legality as well as carefully research the price and liquidity before deciding. In addition, real estate consumer credit continued to decrease in the first quarter of 2024, reflecting buyers' caution.

VARS recommends that this is a good opportunity for people and investors to "step into" the real estate market to take advantage of cheap cash flow and good sales policies of businesses. However, people and investors must ensure that they do not use too much financial leverage, beyond their ability to pay.

DAI VIET

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