Real estate shows more signs of 'bottoming out'

In Hanoi , after a long interruption, at the end of 2023, there has been a new supply of real estate projects. Mr. Nguyen Van Tuan (38 years old), owner of a real estate brokerage office in Hanoi, said that recently, there has been an additional supply of luxury apartments in Thanh Xuan, Dong Da, Ha Dong districts; low-rise houses in Ha Dong district...

Hanoi real estate market is seeing primary supply, according to experts, this is a positive signal.

According to Mr. Tuan, although the primary supply into the real estate market is still small, but in difficult times like now, it is a good sign, showing the signal of "overcoming the bottom". Because for a long time, the primary market has almost frozen transactions due to lack of products from new projects. Transactions mainly take place on the secondary market (buying and reselling).

In the secondary market, investors are taking advantage of low credit interest rates to hunt for potential products. Transactions are therefore more active than in the previous period, especially in the project land, low-rise, apartment and land segments.

According to Thanh Nien 's survey, the interest rate for loans to buy project houses at banks is currently fluctuating between 7 - 7.5%/year, the fixed preferential period is mostly 1 - 2 years. Therefore, borrowing from the bank and using the apartment to be purchased as collateral is the optimal solution, as long as the seller agrees to make a 3-party contract with the buyer, the transaction will be quick and easy.

At some notary offices these days, it is not difficult to see buyers and sellers lining up to complete real estate transaction documents. Some tax officials in districts of Hanoi such as Dong Anh, Dan Phuong, Thanh Tri, Thuong Tin... said that real estate transfer transactions in the past 3 weeks have been more than in the middle of the year, especially in the land segment. The main transaction products are subdivided land, land in residential areas with potential near Ring Road 4, Ring Road 3, 5...

Low credit interest rates are contributing to stimulating real estate liquidity.

According to Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Real Estate Brokers (VARS), the supply for this segment recently also includes loss-cutting products from investors, and lots that are secured assets foreclosed by banks. Mr. Dinh commented that the interest rate level is at a low level, and banks also tend to push capital out to customers, so investors with good and suitable profiles are still the target of banks.

"Instead of the psychology of probing the market and waiting to catch the bottom, many investors are taking advantage of the "cheap money" opportunity to invest, using more financial leverage. That creates warmer signals for the market," said Mr. Dinh.

One of the reasons for the more active secondary market is the price of the product. In the hot period, the price of villas and townhouses in the projects was pushed sky high, but recently, more and more houses with an area of ​​120 - 200 ^m2 have appeared with a price range of 8 - 10 billion VND, even 7 - 8 billion VND per house including land and construction costs. This price has been discounted by about 15% compared to the old price, and compared to the peak period, it has even been "sold off" by about 30%.

"For example, during the peak period, the price of townhouses in many projects in Bac Tu Liem District, Hoai Duc District... was pushed up to 110 - 120 million VND/ ^m2 , but currently many lots are being advertised for 80 - 90 million VND/ ^m2 , or even lower, so clearly the discount is quite good," said Mr. Nguyen Van Tuan.

Slow but steady recovery

Mr. Nguyen Van Dinh added that VARS statistics show that many investors have begun their journey of "hunting" for land in suburban areas of large cities and provinces with strong infrastructure development and much room for growth in the future.

The real estate market shows signs of recovery at the bottom, but demand is not strong enough to create a breakthrough.

Although the market has shown signs of "bottoming out", according to experts, the recovery process will continue to be differentiated by segment and region, due to different absorption capacities.

According to Mr. Nguyen Van Dinh, it is highly likely that in the fourth quarter of 2023 and the first quarter of 2024, the market will continue to recover more clearly due to the strengthening of investor confidence and the reduction of interest rates. "However, the recovery force will hardly be sudden because real estate has been sick for a long time," Mr. Dinh said.

Professor Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, said that instead of "hot" development, the gradual recovery of segments accompanied by parallel signs from the capital market and interest rates shows that this is a healthy and sustainable development.

Source link: https://thanhnien.vn/bat-dong-san-them-tin-hieu-vuot-day-185231105175237882.htm