Buying and investing in real estate at the end of 2023 is better than the beginning of the year

At a regular press conference held on the afternoon of January 12, Mr. Hoang Hai, Director of the Department of Housing and Real Estate Market Management, Ministry of Construction , said that since the end of 2022, the real estate market has encountered many difficulties, poor liquidity, and many real estate projects under implementation have had to be suspended or delayed.

This situation will continue until the first half of 2023, mainly due to problems related to the project's legal issues and in accessing credit loans, issuing bonds and mobilizing capital from customers, leading to businesses lacking capital and having to delay or temporarily suspend project implementation.

Buying real estate at the end of 2023 is better than the beginning of the year, picture 1 — The transaction volume of all types of real estate at the end of the year increased compared to the beginning of the year. (Photo: MV)

“The number of newly approved and completed housing development projects has decreased compared to previous years, leading to a limited supply for the market, but housing prices tend to increase, exceeding the financial capacity of the majority of people who want to buy for use,” said Mr. Hai.

Faced with this situation, in 2023, the Government, the Prime Minister , and ministries, including the construction industry, have proposed many solutions to remove difficulties for the real estate market.

Thanks to that, the real estate market in the second half of 2023 has had more positive changes than in the first 6 months of the year, supply has gradually improved, and some real estate projects have restarted after a period of suspension.

In particular, in the last months of the year, the interest rates of banks lending for real estate purchases are being adjusted in a downward trend, the real estate market is starting to have positive changes, the number of searches for transactions in the land and apartment segments... has recovered well and the supply from new projects and transactions is appearing more and more.

“The transaction volume of all types of real estate at the end of the year increased compared to the beginning of the year, proving that the real estate market is gradually recovering,” said Mr. Hai.

Analyzing this further, Mr. Hai said: In the last 6 months of 2023, the total transaction volume of the 3 segments of apartments, individual houses, and land increased by 13% compared to the first 6 months of the year.

In particular, the volume of residential real estate transactions of the two segments of apartments and individual houses in the last 6 months of 2023 decreased by 17% compared to the first 6 months of 2023.

However, the volume of land real estate transactions in the last 6 months of 2023 increased by 28.4% compared to the first 6 months of 2023.

Regarding supply, in general, in the fourth quarter of 2023, the real estate supply of commercial housing projects and infrastructure construction investment projects to transfer land use rights for housing construction will change in an upward trend.

Specifically, the number of commercial housing projects eligible to sell future housing increased by 4.26% compared to the third quarter of 2023; the number of completed commercial housing projects in the fourth quarter increased by 19.05% compared to the third quarter of 2023.

The number of completed infrastructure construction investment projects to transfer land use rights for housing construction increased by 88% compared to the third quarter of 2023, and the number of newly licensed commercial housing projects in the fourth quarter was about 5 projects higher than in the third quarter of 2023.

“However, overall, real estate supply in 2023 is still limited compared to 2022,” Mr. Hai frankly admitted.

Buying real estate at the end of 2023 is better than the beginning of the year, picture 2 — Panorama of the Press Conference on the afternoon of January 12. (Photo: Viet Vu)

In the coming time, in order for the real estate market to make a breakthrough, the Ministry of Construction will promote the activities of the Working Group, promptly guide and remove difficulties and obstacles in legal procedures, speed up the implementation of real estate projects, especially large housing projects, urban areas, and industrial parks with spillover effects.

At the same time, we will coordinate with the State Bank to continue to closely monitor developments in the real estate market and real estate credit to find solutions to remove difficulties in credit growth for production and business, promote growth, and ensure macroeconomic stability.

Also at the press conference, the leader of the Ministry of Construction affirmed that he will resolutely handle cases that cause difficulties, inconveniences, and roundabout handling that cause delays for people and businesses.

The Ministry of Construction emphasized strengthening inspection and examination of the settlement of administrative procedures related to real estate projects, resolutely handling cases that cause difficulties, inconveniences, and roundabout handling that cause delays for people and businesses.

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