Has the real estate market "bottomed out"?

According to the Vietnam Association of Realtors, in the third quarter, the market recorded nearly 6,000 real estate transactions, 1.5 times higher than the second quarter and more than twice that of the first quarter of 2023. Of which, 80% of the transactions were apartments and condominiums, developed by reputable investors, meeting real housing needs and reasonable prices. This figure partly shows the positive recovery of the market.

The transaction volume in the past 3 months has focused on the apartment and housing segment priced under 10 billion VND in the central core areas of the two major cities of Hanoi and Ho Chi Minh City. The land segment has not shown any positive signs but has shown signs of breaking the bottom in the auctioned land type, in the area around Hanoi, the price is around 2 billion VND, with an absorption rate of 70 - 80% with the auction price being about 5% higher than the starting price, and can be transferred immediately with a difference of 30 - 50 million VND/plot.

Grasping market trends, many businesses in this field are proactively adapting, closely following the Government 's support policies, focusing on investing in affordable products for the majority of people, because this is a product line with high liquidity and low risk.

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Mr. Nguyen Anh Tuan - Chairman of the Board of Directors, General Director of Phuong Dong Joint Stock Company said: "The products we have launched in the market in the past time, we target real buyers and ensure standard housing areas and closed urban areas. Enterprises must balance resources, ensure priority for own capital to continue to implement on schedule. This year, we have reached the finish line and ensured on schedule to prepare for handover to customers".

The Vietnam Real Estate Association believes that this fourth quarter will continue the recovery trend with transaction results clearly improved compared to the previous three quarters due to investor confidence being strengthened and more supply. In particular, interest rates have been adjusted down significantly, approaching the level of early 2022. Although there is not much idle money in the population, it has begun to return to real estate investment. However, the recovery will be difficult to grow dramatically in the short term. Because the real estate market has just gone through a long period of decline and has not yet fully "recovered".

According to experts' analysis, although the market has shown signs of "bottoming out", investors need to be cautious when entering the market. They should not invest in real estate based on the crowd effect, but should identify the investment segment that is suitable for them.

Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn information channel, said: "Information about infrastructure investment, information that some districts can become districts is good information for land prices to increase. However, investors also need to be careful because information that is not in the right direction will have an impact, especially for investors who intend to buy for "surfing" or short-term investment using financial leverage, they should consider carefully".

According to Thanh Trung/VOV1

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