Buying land as an asset is favored by investors in the first quarter of 2023

The supply to the market in the first quarter of 2023 reached about 25,000 products, mainly inventory from previously launched projects. The absorption rate in the first quarter of 2023 was only about 11%, equivalent to more than 2,700 transactions.

According to Dr. Nguyen Van Dinh - Vice President of Vietnam Real Estate Association, President of Vietnam Real Estate Brokers Association - in the first quarter, the situation of waiting and sluggishness still exists. However, the market still has bright spots in localities with strong infrastructure development, high urbanization rate, especially housing products invested by reputable investors, with good legal status, serving real needs, having good liquidity in the long term and high rental demand.

Buying land as an asset is favored by investors in the first quarter of 2023 - 1 — (Illustration)

Residential apartments with good scale, facilities and quality in central areas of big cities, with a rapid population shift thanks to the development of industrial parks and tourist service centers, still attract the attention of people with real housing needs, including high-end product needs and investment needs.

Meanwhile, the demand for buying land as an asset is still favored by investors and continues to be the top choice segment.

Especially since the beginning of March, after the Government made a series of clear moves to remove difficulties and develop the real estate market in a safe, healthy and sustainable manner, the market has begun to record more signs of interest from small investors.

According to Mr. Dinh, in the second quarter of 2023, there will be more legal documents to remove difficulties for thousands of projects that are "shelved" waiting to enter the market, providing the market with new supply.

However, in order for the market to truly escape its slump, Mr. Dinh recommended that state management agencies speed up the issuance of sub-law documents to remove legal bottlenecks for thousands of investment and development projects that are currently "inactive".

From the business perspective, Mr. Le Dinh Chung, General Director of SGO Homes, suggested that the State management agency should quickly remove legal obstacles. Expand the subjects eligible for loans and credit incentives for low-value products, new projects, and commercial projects. Provide tax support such as during the COVID-19 pandemic, allowing real estate businesses to defer taxes from 6 to 12 months.

VARS's report also affirmed that in order for the market to develop safely, healthily, sustainably, and to soon balance supply and demand, it is necessary to promote the development of the social housing segment.

Mr. Nguyen Chi Thanh, Vice Chairman of VARS, commented that social housing is the segment with the highest demand at present. However, current policies have not really attracted investors to participate in developing this segment, causing the supply in the market to be unable to meet the large current demand. Therefore, the State needs to soon amend and issue decrees and circulars related to project transfer, land use fee calculation, compensation, site clearance, and social housing planning. At the same time, it is necessary to be flexible and not specify the subjects eligible to buy social housing.

Agreeing with the above viewpoint, Mr. Pham Anh Khoi, Dat Xanh Services Economic - Financial - Real Estate Research Institute (FERI) said that it is necessary to regulate the conditions for subjects eligible to buy social housing more "flexibly", with more reasonable interest rate incentives in line with the market situation and. With the interest rate applied to the 120,000 billion credit package.

Mr. Khoi assessed that for customers in urban areas, the area with the highest demand for social housing, with an apartment price of about 2 billion, the interest rate to be paid when using the 120,000 billion credit package is 18 - 20 million VND, which is still high.

Thus, the eligible buyer, after deducting family expenses, must have an income of at least 30 million VND per month. The difference between the eligible buyer's income and the applicable interest rate is huge.

Chau Anh

Useful
Emotion
Creative
Unique
Wrath