Many signs of recovery have appeared.

A series of large-scale projects stretching from North to South are launching sales campaigns in various segments; interest rates on home loans have decreased, people are eager to spend money, accepting "loss-cutting" prices are positive signals for the real estate market.

Real estate businesses "release products"

In the first days of the last quarter of 2023, a series of large-scale projects of all types, stretching from North to South, began implementing sales campaigns, creating supply and promoting transactions for the real estate market. In particular, businesses owning tourism and resort real estate projects "launching" after a long period of observation and waiting is a positive sign showing the positive recovery process of the real estate market.

Economy - Real estate market: Many signs of recovery have appeared — The real estate market is receiving positive signs.

Accordingly, in the Northern region, the apartment segment will be supplemented with new supply from a new project, the Canopy Residences, in the Vinhomes Smart City urban area in Hanoi with a scale of about 1,800 apartments; from the new opening phase of the project The Moonlight 1 An Lac, Rose Town Ngoc Hoi...

Meanwhile, the low-rise and townhouse segment received information about the opening of sales of a number of projects such as Aquarius Hung Yen , Sapa City Clouds Lao Cai, Danko Center urban area in Tuyen Quang,...

In Ho Chi Minh City and surrounding areas, Ho Chi Minh City is supplemented with new supply from the next sales phase of the projects Akari City, Glory Heights, Mastery Centre Point, The Global City, The Privia... Eco Village Saigon River, Fiato City in Dong Nai; Picity Sky Park, Bcons Polaris, The Emerald 68, Astral City,.. in Binh Duong, Waterpoint Long An is preparing to "pump" supply into the surrounding areas.

In the Central region, information about new projects opening for sale "warmed up" the market after a long period of silence such as Eco Central Park Vinh, The Panorama 2 Da Nang, The Sailing Quy Nhon,....

In particular, after a long period of absence and silence in the market, the resort real estate segment is back on track, adding to the market supply from large-scale projects such as The 5Way Phu Quoc, Meypearl Harmony Phu Quoc, Regal Legend Quang Binh, The Ocean Resort Quy Nhon,....

According to information recorded by the Market Research Working Group of the Vietnam Association of Realtors - VARS nationwide, newly opened projects have attracted attention, recording impressive booking numbers with attractive sales policies. Typically, a resort project of a reputable investor in Phu Quoc recorded booking numbers many times higher than the number of opening sales.

Real estate cuts losses and prepares for transactions

Besides the primary real estate market, the secondary market also recorded positive signs of recovery with more segments and areas showing signs of "bottoming out".

Economy - Real estate market: Many signs of recovery have appeared (Figure 2). — Resort real estate has also begun to join the "race".

If, in the past, secondary transactions appeared mainly in the land and housing segment for people with prices under 3 billion VND, recently, with more positive information from the market, demand has improved with many options when a more diverse supply is supplemented from loss-cutting products of investors, from real estate collateral assets foreclosed by banks, interest rates have been adjusted down significantly, approaching the level of early 2022, idle cash flow among people, although not much, has begun to move back to real estate investment. Townhouses and villas over 5 billion VND, with prices remaining stable for a while after a period of deep loss-cutting at the beginning of this year, have been "accepted" by investors to invest, starting a new growth cycle.

Information from the brokerage force that is a member of VARS also shows that more investors have started their journey of "hunting" for land, in the suburban areas of big cities, localities with strong infrastructure development and high urbanization rate with prices that are considered quite "bargain", with much room for growth in the future.

"Slow but steady" recovery

The market recovery process will certainly continue to differentiate by segment and region due to different absorption capacities. VARS forecasts that the real estate market in the fourth quarter will continue its recovery trend with clearly improved transaction results compared to the previous three quarters due to the strengthening of investor confidence, lower interest rates, and more suitable supply in the market.

However, the recovery will hardly grow dramatically in the short term. Because the real estate market has been "sick" for a long time and has not yet fully "recovered". A "slow but steady" recovery and gradual familiarization with the new business environment is the key to a successful return.

Accordingly, the new real estate market will not develop rapidly and haphazardly like the previous growth period, but will develop in a healthy and sustainable direction. The market will undergo a process of filtering out customers who make decisions based on emotions and abuse financial leverage, retaining real customers who have qualifications, knowledge and understanding of the market. In the new market, the time of "average" brokers is over, only professional brokers with internal strength, accumulation, sustainable vision and high credit index can survive. At the same time, investors with 3 good qualities: good products, good legality, good prices will still have a place in this new playground.

Although the real estate supply has gradually improved, it is still very insufficient compared to the real demand of the market, especially the affordable segment. For the market to develop truly safely, healthily, sustainably, not too "hot" or too "cold", the gap between supply and demand must be gradually narrowed. Therefore, the supply needs to be stimulated and regulated appropriately by the State through land allocation and land lease in the direction of having preferential policies and mechanisms for the development of low-cost commercial housing.

N.Giang

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