According to a real estate market report recently published by the Dat Xanh Services (DXS - FERI) Institute for Economic , Financial, and Real Estate Research, after a preparation and launch phase in the first quarter, from April 2024 onwards, several businesses have begun to gain momentum and accelerate to capture market share amidst the limited supply of new housing.
Confidence improved
As a result, the market has seen the launch of many new and existing projects (restarting, commencing, signing contracts, announcing, launching sales, introducing to the market, etc.). Hanoi , Ho Chi Minh City, and Binh Duong province are the leading areas.
In particular, new supply saw significant growth, 1.8 times higher than the entire first quarter of 2024; mainly from the Northern market with large-scale projects such as Lumi Hanoi, Vinhomes Royal Island ( Hai Phong ) and some prominent projects in the South such as A&T Sky Garden, Picity Sky Park...
Absorption rates also saw significant growth, with the Northern market experiencing an average increase of 60% - 65%. Meanwhile, the Southern market recorded good absorption rates from both previously launched units and new projects.
"Customer sentiment has improved significantly, as evidenced by the number of customers interested in and making transactions at the announced projects. Stable and low bank interest rates are a factor that helps customers confidently buy real estate, especially for residential purposes. However, the continuous fluctuations in gold prices have also somewhat affected the sentiment of short-term investment buyers," the report stated.
A condominium project is under construction in Ho Chi Minh City. Photo: TAN THANH
Meanwhile, the Vietnam Association of Real Estate Brokers (VARS) reports that the market is witnessing the return of a large number of personnel in the real estate industry. In particular, the number of sales staff returning to the industry has increased by approximately 20% - 30% compared to the same period last year. Furthermore, the number of real estate businesses resuming operations has grown by 22% year-on-year, indicating that the market is ready for a new cycle.
Dr. Pham Anh Khoi, Director of the FERI Institute for Real Estate Investment, noted that investors are now more confident in setting business and financial goals with outstanding growth compared to 2023. Some investors are urgently completing restructuring and preparing financial resources, products, and personnel to return to the market.
"Currently, the number of sales staff at real estate companies has increased by 20% - 30%. The resumption of trading floors continues to increase, creating more opportunities for individual brokers as well as greater competition among brokerage firms. Confidence in the market has improved as both newly launched projects and those currently being promoted receive significant attention from customers and investors, with most believing that the market has passed its bottom," Mr. Khoi shared.
The supply will be more abundant.
Dr. Su Ngoc Khuong, Senior Director of Investment Consulting at Savills Vietnam, predicts that the real estate market in the last six months of 2024 will continue to show positive signs. This assessment is based on the recovering macroeconomic environment, the government's decisive implementation of public investment projects, and fiscal policies aimed at supporting the economy. Monetary policy is being managed flexibly, and interest rates are well controlled.
In particular, the upcoming effective date of three laws (Land, Housing, and Real Estate Business) is expected to definitively resolve legal issues for hundreds of projects currently facing obstacles. "I believe that the supply in the real estate market from now until the end of the year will be abundant and transactions will be more active than in 2023. From there, businesses will have revenue and cash flow to overcome difficulties," Dr. Su Ngoc Khuong anticipates.
According to Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), in the first four months of the year, Ho Chi Minh City only had one project approved for investment, and it was very small in scale. Furthermore, no businesses proposed new projects. This means that the supply of real estate will continue to be insufficient in the coming period. However, according to Mr. Chau, a bright spot in the market is that businesses have made efforts to restructure, restart, and resell products from old projects.
"We believe the real estate market will recover by the end of 2024 because the laws related to real estate have been submitted by the Government to the National Assembly for consideration and will take effect soon. The Government is also developing a pilot resolution allowing businesses and economic organizations to agree on receiving land use rights or transferring land use rights with other land besides residential land to implement commercial housing projects. This will help resolve legal obstacles for hundreds of stalled projects (approximately 148 projects). This means that the supply to the market will improve," commented Mr. Le Hoang Chau.
Source: https://nld.com.vn/bat-dong-san-cho-ngay-khoi-sac-196240530205721143.htm
