Real estate market: Warmth gradually spreading

Bank interest rates are at their lowest level in the past 20 years; legal policies on real estate such as the 2024 Land Law, the 2023 Housing Law, and the 2023 Real Estate Business Law with many new points have been gradually completed. These are the foundations expected to have a positive impact on the real estate market in 2024.

Faith Returned?

Since the beginning of the year, the real estate market has received many positive signals after the mechanisms and policies to "rescue" the market from 2023 have had enough time to "permeate" and a series of new regulations in the draft laws amending and supplementing the Land Law, Housing Law, Real Estate Business Law, etc. were passed by the National Assembly . Many investors have been rushing to return to the market and those who have a need to buy real estate have also started planning to realize their dream of owning a house.

After a period of silence...

There are many reasons why the real estate market is in a difficult situation. Among them, there are obstacles and overlapping legal procedures that prevent many businesses from developing projects as planned. The revised Housing Law, recently passed by the National Assembly, has come into effect, along with a series of market support policies being implemented, making it expected that the real estate market will quickly recover and develop sustainably in the near future.

From the actual operation of real estate project investment enterprises, Mr. Vu Manh Thang, General Director of HLT Vinh Phuc Group, said that the Housing Law passed by the National Assembly is opening up many hopes to remove difficulties for the market. In particular, not yet regulating the term of apartment ownership and mobilizing more resources to develop social housing will contribute to promoting a more balanced market development.

According to Mr. Thang, the real estate market in the province currently has very reasonable prices. In particular, land has shown its attractiveness as the "king of investment channels" to return, and the land segment on the outskirts of industrial parks has received the most attention since the end of 2023 until the beginning of this year.

With the regulations that have been changed and will be adjusted in the near future, it will help to gradually loosen the current bottlenecks. Along with the credit support policies that are being applied, the real estate market will be more prosperous, especially from mid-2024.

From January 1, 2025, all three newly amended laws, including the Land Law, the Real Estate Business Law and the Housing Law, will come into effect. Many investors affirm that the changes related to the laws in the housing and real estate sectors recently passed by the National Assembly will be a major step forward in policy.

This will also be one of the important legal frameworks with many regulations that have a positive impact on the market, investors and customers. The laws have new points that are considered suitable for practice, ensuring the consistency and unity of legal regulations. At the same time, it promises to bring a "new wind" to help the real estate market become cleaner and more transparent.

Boost from bank interest rates

In addition to the legal policies being perfected, the real estate market has received additional support from banks when savings interest rates have dropped to a record low in the past 20 years. It cannot be called vibrant yet, but the gradual recovery of the real estate market has begun to be felt. That is what many investors share when talking about the real estate market in the province today.

"Interest rates have dropped sharply, so I decided to buy real estate with an investment goal of 3-5 years. In my opinion, buying real estate at this time is reasonable, bringing more opportunities than risks. Lower lending interest rates help many people access capital to buy houses for living or investment. In a few months, the market will warm up, housing prices will increase, it will be difficult to buy a satisfactory product," said Ms. Nguyen Thu Ha, an investor in Vinh Yen city.

... the real estate market is expected to warm up in 2024.

After a period of stagnation, transactions in the real estate market have recently "turned around". According to records from brokerage units, since the beginning of the calendar year until now, the market of townhouses and land plots in localities in the province has been trading quite well, "overwhelming, cheap goods" have almost been cleared and prices have also begun to rise again. One of the factors that has a great impact on the market today is that credit from banks is becoming cheaper for all economic sectors, including real estate.

“When the interest rate on bank savings hits rock bottom, people are no longer interested in depositing money in banks. Money is returning to find more profitable investment channels, and real estate is considered a safe and attractive investment segment. Compared to the peak market, the transaction level is not the same, but it can be clearly seen that the defensive mentality is no longer there, instead, people with cash are willing to “put money down” if they find a suitable product,” said Mr. Nguyen Tien Hai, a real estate broker.

According to Mr. Hai, the economy may be doing better, but the "health" of real estate businesses is still weak, making it difficult for the market to grow quickly. However, with the push in reducing interest rates from banks, along with legal policies being completed and put into practice, the recovery of the real estate market is not difficult to predict in the near future.

Article and photos: Thieu Vu

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