The real estate market in the South is gradually recovering.

real estate-market.jpg — The real estate market is gradually regaining the confidence of customers and investors.

Explaining the reasons behind the sluggish and stagnant real estate market in recent times, economist Le Ba Chi Nhan stated that legal bottlenecks in projects led to a scarcity of supply. Simultaneously, controlled credit made it difficult for businesses to access funding, and customers in need of housing also struggled to access preferential financing packages. Furthermore, there was an imbalance as businesses mostly offered luxury real estate, while affordable housing and social housing were scarce. However, since receiving positive changes in mechanisms and policies from state management agencies, the real estate market has gradually transformed, contributing to a healthy resurgence and restoring investor confidence.

Sharing the same view, DKRA Vietnam also believes that the real estate market in the South in general, and Ho Chi Minh City in particular, will gradually recover and improve in the coming time. This is not only true for large cities like Ho Chi Minh City, but also for many other localities nationwide that have officially joined forces, stepping up efforts to resolve difficulties and obstacles for real estate projects in their areas, initially achieving some positive results as some projects have been basically resolved and restarted.

According to data from Batdongsan.com.vn, in the second quarter of 2023, demand for apartments and houses in Ho Chi Minh City gradually recovered well. Searches for apartments in Binh Tan, Tan Phu, Binh Chanh, and Thu Duc districts increased by 9%. For land plots, in some areas such as Hoc Mon, Binh Chanh, and Thu Duc, search interest increased by 7% compared to the end of 2022. Currently, developers are applying various flexible payment methods such as price discounts, extended payment terms, and interest rate support to attract buyers.

Offering solutions to break the "iceberg" of the real estate market, Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association (HoREA) - stated that the difficulties in the real estate market over the past period are related to many issues, but the factor related to the survival of real estate businesses is the confidence of investors. Therefore, businesses need to make efforts to reinvest and restructure products towards developing housing segments that meet real housing needs to revive liquidity. Businesses also need to boldly accept the reality, balance by lowering product prices to recover invested capital, minimizing negative capital and liquidity. If real estate businesses survive this period, the opportunity for renewed development is inevitable.

Sharing the same view, economist Tran Nguyen Dan believes that the real estate market is now showing signs of recovery, especially as banks' credit limits are being loosened, interest rates are gradually decreasing, and the stock market is also recovering. If real estate prices are improved and lending interest rates are reduced, buyers and investors will have a better understanding of the true nature of the real estate market. They will be more satisfied with the money they spend to own real estate, which will also help the real estate market gradually recover and develop more healthily in the future.

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