Land prices increase, apartment prices show signs of slowing down due to buyers' wait-and-see mentality

Information on housing and real estate market in the second quarter of 2024 from the Ministry of Construction shows that in the second quarter of 2024, 9 commercial housing projects were completed with a scale of about 5,005 units, the number of projects is equal to 90% compared to the first quarter of 2024 and equal to 128.57 compared to the same period in 2023, in the North there are 6 projects; in the Central region there is 1 project and in the South there are 2 projects.

The Ministry of Construction has just announced information on housing and real estate market in the second quarter of 2024. (Source: Construction Newspaper)

There are 19 newly licensed projects with a scale of about 10,230 units, the number of newly licensed projects is equal to the first quarter of 2024 and equal to 126.67% compared to the same period in 2023, in the North there are 9 projects, in the Central region there are 9 projects and in the South there is 01 project.

There are 50 projects eligible to sell future housing with a scale of about 13,167 units, the number of projects eligible to sell future housing is equal to 131.58% compared to the first quarter of 2024 and equal to 106.38% compared to the same period in 2023, in the North there are 17 projects, the Central region has 20 projects and the South has 13 projects.

There are 998 projects under construction with a scale of about 437,153 units, the number of projects under construction is equal to 101.42% compared to the first quarter of 2024 and equal to 101.2% compared to the same period in 2023.

Regarding social housing projects for low-income earners and industrial park workers, in the second quarter of 2024, according to reports from 53/63 localities, nationwide, 9 social housing projects have been implemented, of which 03 projects have been completed (1 project completely completed, 2 projects partially completed) with a scale of 1,120 units; 01 project has started construction with a scale of 395 units; some new projects have held groundbreaking and launching ceremonies. There are 5 projects that have been approved for investment policy with a scale of 2,876 units.

Regarding the implementation of the 120 trillion VND credit package for social housing loans, according to the Ministry of Construction, currently, in addition to the 4 state-owned commercial banks (BIDV, Vietinbank, Agribank , Vietcombank), Tien Phong Bank (TPbank) and VPBank have registered to participate in the program with a registration amount of 5,000 billion VND for each bank.

Up to now, 32/63 provincial People's Committees have sent documents or announced on the electronic information portal the list of projects participating in the program with 73 projects; in which some provinces have announced many projects such as Hanoi (6 projects), Ho Chi Minh City (6 projects), Bac Ninh (6 projects), Binh Dinh (5 projects)...

To date, commercial banks have disbursed VND1,234 billion, including VND1,202 billion for investors in 12 projects; VND32 billion for home buyers in 5 projects.

Regarding infrastructure construction investment projects to transfer land use rights for people to build their own houses, in the second quarter of 2024, 20 projects were completed with a scale of about 1,979 plots/plots, equal to 95.24% compared to the first quarter of 2024 and equal to 80% compared to the same period in 2023.

There are 493 projects under construction with a scale of about 82,993 plots/plots, equal to 95% compared to the first quarter of 2024 and equal to 151.23% compared to the same period in 2023.

There are 16 newly licensed projects with a scale of about 1,882 plots/plots, equal to 133.33% compared to the first quarter of 2024 and equal to 35.56% compared to the same period in 2023.

According to the Ministry of Construction's report, the volume of apartment and individual house transactions was 72.2% compared to the first quarter of 2024, 87.08% compared to the same period in 2023; the volume of land transactions was 127.9% compared to the first quarter of 2024 and 185.8% compared to the same period in 2023.

The inventory of individual houses and land plots in the second quarter of 2024 is 14,106 units/plots (7,045 individual houses; 7,061 land plots), equivalent to 73% compared to the first quarter of 2024 (the inventory of individual houses and land plots in the first quarter of 2024 is 19,323 units/plots, of which: 8,468 individual houses, 10,855 land plots).

In the second quarter of 2024, according to surveys and reports from several major cities and provinces such as Hanoi and Ho Chi Minh City, apartment prices increased by an average of 5% to 6.5% in the second quarter and 25% annually depending on the area and location. Apartment prices increased not only in newly opened projects but also in many old apartments that have been used for many years.

However, this situation only occurred for a short period, and showed signs of slowing down at the end of the quarter due to high prices and buyers' psychology being in a wait-and-see mode.

According to the Ministry of Construction, when the three revised laws, including the Land Law, Housing Law and Real Estate Business Law, officially take effect from August 1, 2024, 5 months earlier than originally planned, the real estate market will flourish again when the "bottlenecks" are removed.

Source: https://baoquocte.vn/giao-dich-bat-dong-san-quy-ii2024-dat-nen-tang-gia-chung-cu-co-dau-hieu-chung-do-tam-ly-nguoi-mua-cho-doi-277180.html