New trends of the real estate market in 2024

Many positive signals

According to economic experts, the real estate market in the Southern region has recently shown many positive signs, so many investors are no longer cutting losses or deeply reducing prices.

Part of the reason is that investors can access bank capital at preferential interest rates. For investors who are bearing high interest rates, they can switch to borrowing from other banks with lower interest rates.

These things have helped to significantly reduce the pressure on investors. This is also the reason why landlords can cope with additional debt, the real estate market is also showing signs of recovery, expecting prices to increase soon to get rid of goods.

The real estate market in early 2024 will be bustling with many projects opening for sale.

A report from DKRA Group shows that in November 2020, the wave of selling land and individual houses at a loss has cooled down somewhat, and deep price reductions of 30-35% are no longer common.

Primary prices of land and townhouses in Ho Chi Minh City and neighboring provinces recorded an average decrease of 3-10% compared to the same period in 2022 and only decreased in high-value products with incomplete infrastructure and legal documents. In the secondary market, prices and transactions maintained a horizontal trend.

Recently, at the Vietnam Real Estate Conference (VRES 2023), Economist - Dr. Can Van Luc said that currently, capital flows for investment markets are having positive changes in the second half of 2023.

The stock market is recovering, bank interest rates have cooled down to pre-Covid-19 lows, and inflation is under control.

Vietnam is one of the countries that reversed its monetary policy early, with interest rates at least remaining flat or decreasing slightly in both deposits and loans in the coming time.

In the real estate sector alone, the real estate bad debt ratio increased from 1.72% at the end of last year to 2.89% as of September 2023, but is still under control at below 3%.

The corporate bond market cannot recover quickly, in 2024, about 23,000 billion VND of bonds will mature.

However, this figure is still lower than the maturity peak of September 2023. Economic indicators in 2024 will be more positive, many difficulties are being gradually resolved to bring the economy into a more stable growth phase.

New trends of real estate market 2024?

Forecasting the real estate market in 2024, Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn said that products serving real housing needs such as apartments and private houses will be prioritized in investors' portfolios because they can create regular cash flow and maintain stable price levels.

These will also be the segments that will recover the earliest in the market in the coming time.

An apartment project restarted in early December 2023.

Meanwhile, apartments will be the leading type of market recovery from the first half of 2024. The survey results also showed that more than 1/3 of brokers and consumers expect apartments to recover the most from the first half of next year.

Mr. Nguyen Quoc Anh acknowledged that this development is similar to the cycle 10 years ago, when the market fell into difficulty, liquidity focused on the real estate segment, which was "defensive" in nature and brought cash flow.

According to real estate experts, the most difficult time for the 2023 market will be around June and July this year when interest rates increase and many large projects have yet to have their legal issues resolved.

By October and November, supply began to improve in both Ho Chi Minh City and Hanoi. In the West of Ho Chi Minh City alone, about 3 projects were launched, while in Hanoi, new supply was concentrated in the East and South.

Sharing new trends in the real estate market in 2024, experts said that there will be some new trends in buying and selling.

Accordingly, buyers and investors will be more demanding in terms of quality and legality of projects.

The trend of applying real estate data in searching and buying real estate will be used more by home buyers. That is data with many years of history on price fluctuations, investment profits and supply - demand.

According to Dr. Can Van Luc, an economic expert, the macro-economic picture has seen positive changes. Economic growth this year is expected to reach 5-5.2% and inflation will decrease to 3-3.5%, while it was 5% at the beginning of the year.

Especially from the beginning of 2025, when the laws related to the real estate market come into effect, it will promote the recovery momentum. Thanks to changes in interest rates, credit growth and real estate policies, experts believe that the market is expected to reverse from the third quarter of 2024 and improve from the second quarter of 2025.

In addition, with the passing of the Housing Law 2023 and the Law on Real Estate Business (amended), the Land Law (amended) is expected to be passed in 2024, bringing about huge changes to the real estate market.

Source: https://www.nguoiduatin.vn/xu-huong-moi-cua-thi-truong-bat-dong-san-nam-2024-a640818.html