Real estate market "ready" to enter a new cycle

Immediately after the news that the trio of laws will officially take effect from August 1, 2024, the Vietnamese real estate market has "turned on readiness mode" for the new cycle.

Strong signals from the market

If the real estate market picture in the first 6 months of 2024 is painted by two colors: waiting and hope, the last 6 months of the year will be a warm color. The market has had many new sources of supply, when investors began to activate the implementation of a series of projects. Up to now, more than 20 new projects have been introduced and opened for sale, diverse in segments, types and areas, showing the perseverance and efforts of the market in recent times to promote the recovery wave to spread more and more widely.

Data from the Vietnam Association of Realtors (VAR) shows that the absorption rate reached nearly 31%, with about 6,200 successful transactions, up 8% compared to the previous quarter and double the same period last year. Newly launched projects have recorded good growth in interest, transactions and selling prices in both the primary and secondary markets. Some markets are considered bright spots in the first half of 2024 such as: Hai Phong, Hanoi, Hung Yen, Ha Nam, Bac Giang , Hai Duong, Da Nang, Binh Duong, Can Tho.

The market has had many new sources of supply, as investors have begun to activate the implementation of a series of projects.

A “common denominator” of most successful business projects at this stage is the systematic progress, quality and legal standards. Next are the diverse and flexible incentive policies, suitable to the needs and desires of customers from the booking stage.

Along with the strong recovery wave of the segment meeting real housing needs, investment demand has also begun to restart on a large scale. FDI capital poured into real estate has also increased sharply, reaching 61.5% over the same period in 2023. Real estate credit accounts for nearly 22% of the total outstanding debt of the entire economy and is an important business segment of banks.

It can be seen that all the above signals indicate that the real estate market is ready to enter the restart phase and begin a strong recovery process in most segments and regions.

Customer and investor signals and actions

According to Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, the three laws passed are the foundations that help the market enter a development cycle in a safe and healthy direction.

Professional investors assess that the first half of 2024 is a “once in a lifetime” opportunity to buy good properties, long-term investment will bring high profits. If this period is missed, as soon as entering the third quarter of 2024, the opportunity to buy real estate at a good price at the bottom will almost disappear.

They are only interested in safe investment products with real value or exploitation that bring sustainable cash flow.

Therefore, recently, many investors have returned to the land market in provinces such as Ha Nam , Bac Ninh, Ninh Binh, Hai Duong... Compared to the peak period, the selling price of unsold land in some areas is 20-30% lower, thus attracting investors to return to "get ahead".

Mr. Nguyen Thanh Trung - Sales Director of Tan Loc Land - a project development unit in Hai Duong area said that in recent months, there has been a lot of interest, searches for land products and transactions have appeared again. This shows that investors are more open, confident in the effectiveness of the three Laws that are about to take effect.

Not only provincial land but also land in the suburbs of big cities, localities with strong infrastructure development and high urbanization speed also welcome the return of investors. The residential land segment also receives the attention of investors in products serving housing needs.

After the “collisions” with the market, customers and investors are now much more sober and experienced. They are only interested in safe investment products with real value or exploitation that bring sustainable cash flow, and they almost no longer believe in baseless commitments to invest recklessly.

The new cycle will be a race to create good products, legal standards, suitable to market needs, and more attractive sales policies than before. Only then can we convince experienced customers and investors.

Thanh Ha New City - Hai Duong project is about to launch

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Source: https://baodautu.vn/batdongsan/thi-truong-bat-dong-san-bat-che-do-san-sang-buoc-vao-chu-ky-moi-d219849.html