Demand for apartments is projected to surge after August 1st.

At its 7th session, the National Assembly passed three laws related to the real estate market: the Land Law, the Housing Law, and the Real Estate Business Law, which will take effect from August 1, 2024, five months earlier than previously decided.

The government also affirmed that there is a solid basis for issuing detailed regulations and implementation guidelines, ensuring progress and quality. This special support measure is expected to create a synchronized legal framework, promoting the safe, healthy, and sustainable development of the real estate market nationwide in general and in the capital in particular. It is predicted that in 2025, the market will see a significant recovery in terms of supply, product quality, and selling prices.

In the context of limited supply, projects that launch new units are highly sought after.

Many experts believe that one of the key aspects of the 2024 Land Law is the removal of the land price framework. The principle of valuing land according to market prices could lead to continued increases in real estate prices, as compensation for land acquisition and resettlement would increase significantly. This is not to mention the increasing and stricter costs of land use fees and transfer taxes, which would consequently raise the total investment costs of projects.

Furthermore, the demand for housing is increasing, while undertaking projects at this time is extremely difficult. This is partly due to the difficulty in finding land for development, partly due to lengthy procedures, and partly because input costs such as construction materials, labor costs, interest costs, land costs, etc., are all rising.

"When the tide rises, the boat rises; new projects will have increasingly shocking prices, and it's easy to understand why apartment projects that have been or are under construction are in high demand," said one developer.

In reality, the race to find properties in areas where projects are being developed is heating up. Cong, a veteran real estate agent specializing in the western part of Hanoi, who is frequently seen at the entrance to the Vinhomes Smart City apartment project in the heart of the urban area, says that the number of customers visiting the project to inquire has increased dramatically.

According to this broker, Hanoi is not a small market, but in recent days, business people have been constantly meeting at the same "bases"—construction sites—to present their listings.

"There are only a few projects launching, and Nam Tu Liem, Long Bien, and Hung Yen remain the areas that attract the most real estate agents. Some days we go to several places to secure a spot, get the listings, and attend agent meetings, and everywhere we go we meet the same familiar faces," said Cong.

According to Mr. Le Dinh Chung, General Director of SGO Homes Investment and Development Joint Stock Company, since the end of the second quarter of 2024, the number of customers deciding to invest in real estate has increased significantly in order to take advantage of the low-interest loans being offered by banks to ensure the credit growth target for 2024.

In the second quarter of 2024 alone, according to a report by the Vietnam Association of Real Estate Brokers (VARS), the entire market recorded more than 14,400 successful transactions, a 2.4-fold increase compared to the previous quarter; in which, the apartment segment led the market in both liquidity and price increase. Each new apartment project preparing to launch is likened to a "cooling rain" to market demand.

At The Sola Park - a rare apartment project by MIK Group in West Hanoi - its strengths include a multi-layered connectivity location, hundreds of amenities for daily life, and a wide range of apartment types to meet various needs for both living and investment/rental purposes, thus attracting many customers.

The Sola Park is one of the focal projects in western Hanoi today.

According to data from Batdongsan.com.vn, although apartment prices in Hanoi have increased rapidly recently, they remain the lowest compared to other major cities in the region. For example, in Singapore, the average price of an apartment is 415 million VND/m2, in Hong Kong 645 million VND/m2, in Tokyo 215 million VND/m2, and in Bangkok 162 million VND/m2, while in Hanoi the average is 50 million VND/m2.

With the 2023 Housing Law opening the door for foreigners and overseas Vietnamese to own real estate, the demand for apartments from this group of customers will increase sharply after August 1, 2024, especially in large-scale projects that have formed "international residential areas," Korean neighborhoods, and Japanese neighborhoods such as Vinhomes Smart City, The Mirea Park, or The Sola Park…

Source: https://dantri.com.vn/bat-dong-san/suc-cau-can-ho-du-bao-se-tang-vot-sau-thoi-diem-18-20240729181419928.htm