Real estate market gradually recovers, many Southern investors "go North"

The real estate market has shown signs of gradual recovery and improvement recently, notably the "Northward expansion" trend of some Southern developers. Among them, several developers have won the PropertyGuru Vietnam Real Estate Awards 2023.

The real estate market in the North is attracting many investors from the South. (Source: batdongsan.com.vn)

According to a survey by Batdongsan.com.vn , 62% of real estate agents surveyed said their clients had "put down money" to buy properties with good prices or sales policies. The Batdongsan.com.vn real estate consumer sentiment report for the first half of 2024 also reflects that up to 65% of survey participants intend to buy real estate in the next year. Of these, 64% will buy in primary market projects.

The market is also seeing a trend of younger homebuyers. Among those looking to buy property in the next year, 64% are under 40 years old. Notably, about 60% of young people aged 22 to 29 are confident they can afford to buy a home in the future.

In addition, expectations regarding developers have increased, especially concerning financial strength and brand reputation, with 24% of consumers rating awards/certifications as an important factor when choosing a developer.

In the first quarter of 2024, apartments in Hanoi were one of the most scrutinized types of real estate. Apartment prices in Hanoi have increased sharply by 11%–19% over the past year, approaching the prices of apartments in Ho Chi Minh City.

This price increase is due to limited supply while demand remains very high, not only from Hanoi and the northern provinces but also from the South. Interest in Hanoi apartments from people in Ho Chi Minh City has increased 7.5 times compared to the beginning of 2021, according to the Q1/2024 report by Batdongsan.com.vn .

Explaining this phenomenon, Mr. Bach Duong, General Director of Batdongsan.com.vn, commented: “The ‘Northward expansion’ trend of some Southern developers, who have a loyal customer base, has partly attracted interest from the South. Projects by Southern developers also contribute to diversifying and improving the quality of real estate in the Northern market.”

Among these developers expanding northward, several prominent companies have won the PropertyGuru Vietnam Real Estate Awards 2023. For example, CapitaLand Development (Vietnam) won the Best Real Estate Developer award, and its Lumi Hanoi project was honored as the Best Luxury Apartment Project (Hanoi); similarly, Kusto Home's The Reflection Westlake project received the title of Best Luxury Apartment Project (Hanoi).

Jules Kay, Managing Director of PropertyGuru Asia Real Estate Awards, believes that the recent positive signs in the real estate market are driven by factors such as stabilizing capital flows and promising new policies.

Lower lending interest rates at some banks make it easier for homebuyers and investors to access capital. Changes in the Land Law and Housing Law, such as allowing overseas Vietnamese to transfer real estate and opening up to foreign capital in social housing development, will help expand the supply of real estate capital in Vietnam.

“Through this series of real estate awards in Asia, we hope to contribute to fostering positive sentiment among real estate consumers by creating opportunities for developers to demonstrate the quality of their products and their sustainable development,” shared Mr. Jules Kay.

Press conference announcing the PropertyGuru Vietnam Real Estate Awards 2024. (Source: PropertyGuru)

Amidst a gradually recovering and improving market, the 10th PropertyGuru Vietnam Real Estate Awards officially opened registration on April 25th. After several rigorous evaluation rounds, the best developers and projects will be awarded prizes in November 2024.

Following on from 2023, the PropertyGuru Vietnam Real Estate Awards 2024 are more diverse than ever, adding new titles to honor various types of real estate, in line with market trends. Examples include titles for investment properties, properties integrated with nature, and showrooms.

This year's awards also emphasize social responsibility by introducing entirely new titles related to ESG (Environment, Society & Corporate Governance) to honor outstanding developers in sustainable design and construction, energy efficiency, and creating a positive social impact.

An independent judging panel, comprised of leading experts in their respective fields, will participate in rigorous evaluation rounds to select the deserving recipients of the awards. The entire judging process is overseen by HLB – a world- leading auditing and consulting organization – to ensure fairness and transparency.

Source: https://baoquocte.vn/thi-truong-bat-dong-san-dan-hoi-phuc-nhieu-nha-dau-tu-mien-nam-bac-tien-269070.html