Real estate market shows further signs of 'breaking through the bottom'.

In Hanoi , after a long period of interruption, the supply of real estate projects began to appear at the end of 2023. Nguyen Van Tuan (38 years old), the owner of a real estate brokerage office in Hanoi, said that recently, they have seen an increase in the supply of high-end apartments in Thanh Xuan, Dong Da, and Ha Dong districts; and low-rise houses in Ha Dong district…

According to experts, the Hanoi real estate market is seeing a surge in primary supply, a positive sign.

According to Mr. Tuan, although the primary supply entering the real estate market remains limited, this is a positive sign in the current difficult times, indicating a "bottoming out" phase. For a long time, the primary market was almost completely frozen due to a lack of products from new projects. Transactions mainly took place in the secondary market (buying and selling).

In the secondary market, investors are increasingly taking advantage of low credit interest rates to hunt for promising properties. Transactions have therefore become more active than in previous periods, especially in the segments of project land, low-rise buildings, apartments, and land plots.

According to a survey by Thanh Nien newspaper , interest rates for home loans at banks currently range from 7-7.5% per year, with fixed preferential periods of mostly 1-2 years. Therefore, taking out a bank loan and using the apartment being purchased as collateral is the optimal solution; as long as the seller agrees to a three-party contract with the buyer, the transaction can proceed quickly.

At some notary offices these days, it's not uncommon to see buyers and sellers lining up to process real estate transaction documents. Tax officials in Hanoi's districts such as Dong Anh, Dan Phuong, Thanh Tri, and Thuong Tin... said that real estate transactions in the last three weeks have been higher than in the middle of the year, especially in the land segment. The main products traded are subdivided land plots and privately owned land in potential locations near Ring Road 4, Ring Road 3.5, etc.

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 includes distressed investment properties and lots that are collateral assets foreclosed by banks. Mr. Dinh noted that with interest rates currently low and banks tending to provide capital to customers, investors with good credit profiles and suitable qualifications remain the target for banks.

"Instead of the cautious approach of waiting to buy at the bottom, many investors are taking advantage of 'cheap money' opportunities to invest, using additional financial leverage. This is creating warmer signals for the market," Mr. Dinh said.

One of the reasons for the increased activity in the secondary market is the price of the products. During the boom period, the prices of villas and townhouses in projects were pushed to exorbitant levels, but recently, more and more units with an area of ​​120-200 ^m² are appearing in the price range of 8-10 billion VND, or even 7-8 billion VND per unit, including land and construction costs. This price represents a discount of about 15% compared to the old price, and compared to the peak period, it has even been "sale off" by about 30%.

"For example, at its peak, the price of townhouses in many projects in Bac Tu Liem District, Hoai Duc District, etc., was pushed up to 110-120 million VND/ ^m2 , but now many plots are being advertised at 80-90 million VND/ ^m2 , or even lower, so the discounts are clearly 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 "hunting" for land in suburban areas of large cities and provinces with strong infrastructure development and significant potential for future growth.

The real estate market is showing signs of recovery from its bottom, but demand is not yet strong enough to create a significant surge.

Although the market has shown signs of "bottoming out," experts believe that the recovery process will continue to be differentiated across segments and regions due to varying 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 its clearer recovery trend due to strengthened investor confidence and lower interest rates. "However, the recovery will be difficult to achieve dramatically because the real estate market has been ailing for a long time," Mr. Dinh said.

Professor Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, believes that instead of rapid development, the gradual recovery of various segments, accompanied by parallel signs from the capital market and interest rates, indicates healthy and sustainable development.

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