According to the report for the first 6 months of 2024 of the Department of Housing and Real Estate Market Management (BDS) - Ministry of Construction, the whole country has 18 completed commercial housing projects, 23 newly licensed projects and 984 projects under implementation.
In the land segment, there were 32 projects that completed infrastructure investment to transfer land use rights for construction; 16 newly licensed projects and 519 projects under implementation... Notably, the market was more bustling with 253,000 transactions made, an increase of more than 10% over the same period last year.
Active trading
Statistics from a market research company show that in the first 6 months of the year, the Hanoi apartment market recorded an explosion in supply, increasing 15 times compared to the same period in 2023, reaching about 7,525 products. The absorption rate reached an average of 65% - 70% of the new product basket, an increase of about 4.5 times compared to the 15% level in the same period last year.
In Ho Chi Minh City, the supply of apartments also increased nearly 1.3 times compared to the same period last year, reaching about 2,356 products. The absorption rate reached about 45% - 50%, an increase of about 2.5 times compared to the same period.
A project in Thu Duc City just announced in June has attracted the attention of investors.
Some projects have been announced and attracted buyers recently such as Eaton Park (HCMC) by investor Gamuda Land, A&T Sky Garden project (Binh Duong) by investor A&T Binh Duong.
According to Ms. Giang Huynh, Director of Research & S22M - Savills Vietnam, the successful launch of several projects in the past 6 months shows that market confidence is gradually recovering. Specifically, in the commercial apartment segment, the transaction volume in the second quarter doubled compared to the previous quarter and increased by 606% compared to the same period last year, to 2,302 units. The transaction volume in the second quarter contributed nearly 70% of the total sales volume in the 6 months.
Explaining the good absorption rate of apartment supply, Ms. Giang Huynh said that the investor has introduced attractive sales policies such as customers only paying 5% of the apartment value in advance and receiving the handover, receiving fixed interest rate support for 15 years or discounts of up to 20%. However, affordable apartments priced under VND3 billion are increasingly rare in Ho Chi Minh City, accounting for only 18% of primary supply in the past 6 months and mainly located more than 10 km from the city center. This is also a challenge for this segment because in the next 3 years, only 5% of supply to the market will belong to this segment.
According to Mr. Vo Hong Thang, Investment Director of DKRA Group, the bright spot of the real estate market in the second quarter was the sharp increase in apartment consumption in the primary market of 88% compared to the previous quarter and 82% compared to the same period in 2023. The supply and consumption of villas and townhouses in Ho Chi Minh City also increased significantly, reaching 12% and 4.5 times higher than the previous quarter.
"Market demand has improved significantly, with consumption increasing sharply compared to the previous quarter, mainly in projects with completed infrastructure and legal documents and implemented by reputable investors in the market," said Mr. Thang.
Positive outlook
Statistics from the Ministry of Planning and Investment also show that real estate businesses have begun to grow again after 2 years of gloom, the number of businesses returning to operation in the first 6 months of 2024 increased by 11.4% compared to the same period in 2023. The number of newly established businesses also recorded an increase of 1.4% compared to the same period last year, demonstrating the attractiveness and development potential of the market. The average capital size per newly established business also increased by 29.7% compared to the same period in 2023.
Mr. Tran Khanh Quang, General Director of Viet An Hoa Real Estate Investment Company, said that in the first 6 months of 2024, the Government has implemented many synchronous solutions to remove difficulties for the real estate market, aiming for sustainable and healthy development. At the same time, it continues to promote the completion of the legal framework, remove difficulties in administrative procedures and credit as well as develop social housing. These have helped restore the confidence of investors and home buyers, bringing the real estate market back to a stable growth trajectory.
According to Mr. Tran Khanh Quang, although the market has not reached expectations, it has been very positive. Especially in the last months of the year, when the laws related to real estate come into effect, the market will have more positive changes. Investors and related parties are preparing financial resources to "put down money", deploy or restart projects..., thereby helping the market recover more strongly.
"The market in the last 6 months of the year can grow by 5% - 10% if the supply reaches 10,000 products of all kinds. To maintain market liquidity at a high level like in the first 6 months of the year, it requires products supplied to the market to be legally guaranteed; investors must have enough potential and reputation; payment policies must be favorable and the brokerage force must be more professional after the recent strict purification period" - Mr. Quang expressed his opinion.
Regarding the scarcity of apartment supply and skyrocketing prices, economic expert - Dr. Dinh The Hien said that the real estate market in recent times is not necessarily scarce but just has few quality, legal products. Because if there is scarcity, other real estates in the same segment and other segments will increase in price. Meanwhile, real estate prices have only increased slightly in the apartment segment in the past 2 years because this market has not been able to release products en masse because many projects are stuck in legal issues.
"In the coming time, when the new laws come into effect (August 1), the real estate market will be healthier and more transparent as legal problems are gradually resolved. From there, projects will be gradually cleared, more products will be supplied, contributing to reducing the shortage of housing in the market. "Ghost" projects, projects that do not have enough legal documents are also opened for sale to collect money from customers or the situation of people buying houses on paper and then leaving them there without knowing when they will be handed over will be reduced to the maximum" - this expert expects.
Grade A office prices continue to rise
Mr. Leo Nguyen, Director of Strategy and Tenant Solutions at Knight Frank Vietnam, said that in the second quarter, Grade A office rents in Ho Chi Minh City continued to increase along with other segments and reached 58.4 USD/m2/month. The reason is the increased demand for high-end office space in new buildings with green certification.
Leading the demand for office space in Ho Chi Minh City are technology and research and development enterprises, accounting for 51% of the total transaction area. Next are pharmaceutical enterprises, accounting for 23% of the total transaction area. "The office segment is forecast to continue to maintain a positive trend in the coming time due to the continued increase in demand from businesses and corporations," said Mr. Leo Nguyen.
Source: https://nld.com.vn/thi-truong-nha-dat-dang-am-dan-196240715204610955.htm
Comment (0)