2024 is the last year real estate 'overcomes obstacles'

At the "Real Estate Forum 2024 - Overcoming Challenges" held on the morning of January 5, Ms. Pham Thi Mien, Deputy Head of Market Research and Investment Consulting and Promotion Department, Vietnam Real Estate Brokers Association said that although the real estate market is still difficult, it has become more bustling since the fourth quarter of 2023 when many projects have been opened for sale.

Supply and transactions in the fourth quarter improved with total supply reaching 21,774 products, up 6% compared to the third quarter of 2023. Of these, about 7,000 products were launched on the market for the first time. In the social housing segment alone, 46 projects were completed with 20,210 units, reaching 4.7% of the plan for the 2021-2025 period.

The total housing supply in 2023 will reach about 55,329 products, an increase of about 14% compared to the total number of products offered in 2022. The absorption rate in the whole market in 2023 will reach 33%, equivalent to about 18,600 apartments and low-rise products successfully traded; equivalent to the total number of housing transactions in 2022.

Commenting on the real estate market, Dr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, said that 2024 could be the final year of the real estate market's "overcoming obstacles". The market will gradually stabilize and the overall picture may change in a more positive direction.

The real estate market has passed its most difficult period.

Mr. Dinh said that although the changes in the new law have not yet been applied, they will be a positive signal for entities to place their trust and "shock" their spirit for the preparation stage in the coming period, on the condition that the Land Law (amended) must be "integrated" and consistent with the Housing Law and the Real Estate Business Law (amended) that were previously passed.

The Chairman of the Vietnam Real Estate Brokers Association commented that the market will continue to maintain good signals in the first and second quarters of 2024 from the end of 2023. From the end of the third quarter onwards, the recovery of real estate will be clearly demonstrated.

Sharing the same view, economist Nguyen Minh Phong also mentioned some new advantages for the real estate market in 2024. According to him, the Government's drastic direction, along with the decreasing interest rate level, will help businesses have easier access to capital, and people will shift their attention to real estate investment channels. From there, the market will have clear changes.

The report of the Vietnam Real Estate Brokers Association also commented that in 2024, many macro factors will have a positive impact on the market such as: home loan interest rates continue to be adjusted down and social housing continues to be the focus of the Government 's housing development program.

At the same time, the approval of planning in localities under consideration will be promoted to be completed soon; focusing on promoting public investment, creating economic momentum in many key regions across the country... will be a "support" for the market.

The real estate market in 2024 is also expected to stabilize and is forecast to welcome the return of about 30-40% of real estate brokers.

The residential real estate segment will lead the market from mid-2024 with a total supply of apartments estimated at over 30,000 products. Of which, Hanoi will have 15,000 products, Ho Chi Minh City 5,000 products and Binh Duong about 10,000 products.

While industrial real estate is still considered a good growth segment, tourism and resort real estate continues to face many challenges; commercial real estate has not fluctuated. Notably, mergers and acquisitions (M&A) activities still maintain their attractiveness.

Speaking at the forum, Mr. Hoang Hai - Director of the Department of Housing and Real Estate Market Management (Ministry of Construction) - affirmed: Currently, the real estate market has overcome the most difficult period, with monthly and quarterly declines. Ho Chi Minh City is the locality with the most positive changes.

According to Mr. Hoang Hai, in order to "overcome difficulties" in the past time, from the beginning of 2023 until now, the Government has directed very strongly and relevant ministries and branches have also promptly joined in to remove "bottlenecks" in procedures, land, credit, bonds, etc. Along with timely issued policies, the legal corridor has also been completed with the passage of two laws that have a great impact on the market: the Housing Law (amended) and the Real Estate Business Law (amended).

In particular, the Government Working Group has reviewed, urged, and promptly removed difficulties for a series of real estate projects in many localities.

However, for policies and solutions to continue to produce expected results, Mr. Hai said that time and participation and support from ministries, sectors, businesses and people are still needed.

Chau Anh

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