The real estate market is warming up.

According to the report for the first six months of 2024 by the Department of Housing and Real Estate Market Management - Ministry of Construction , the whole country saw 18 completed commercial housing projects, 23 newly licensed projects, and 984 projects under development.

In the land plot segment, 32 projects have completed infrastructure investment for the transfer of land use rights for construction; 16 projects have been newly licensed and 519 projects are under development... Notably, the market has become more vibrant with 253,000 transactions completed, an increase of over 10% compared to the same period last year.

Active trading

Statistics from a market research company show that in the first six months of the year, the Hanoi apartment market witnessed a surge in supply, increasing 15 times compared to the same period in 2023, reaching approximately 7,525 units. The absorption rate averaged 65% - 70% of the new inventory, an increase of about 4.5 times compared to the 15% of the same period last year.

In Ho Chi Minh City, the supply of apartments also increased nearly 1.3 times compared to the same period last year, reaching approximately 2,356 units. The absorption rate reached about 45% - 50%, an increase of about 2.5 times compared to the same period.

A project in Thu Duc City, announced in June, has attracted the attention of investors.

Several projects have been announced and attracted buyers recently, such as Eaton Park (Ho Chi Minh City) by developer Gamuda Land, and A&T Sky Garden ( Binh Duong ) by developer A&T Binh Duong.

According to Ms. Giang Huynh, Director of Research & S22M - Savills Vietnam, the successful launch of several projects in the past six months shows that market confidence is gradually recovering. Specifically, in the commercial apartment segment, the number of transactions in the second quarter doubled compared to the previous quarter and increased by 606% compared to the same period last year, reaching 2,302 units. Transactions in the second quarter contributed nearly 70% of the total sales in the first six months.

Explaining the good absorption rate of apartment supply, Ms. Giang Huynh said that it was due to developers offering attractive sales policies such as customers only paying 5% of the apartment value upfront and receiving handover, receiving fixed interest rate support for 15 years, or discounts of up to 20%. However, affordable apartments priced under 3 billion VND are increasingly rare in Ho Chi Minh City, accounting for only 18% of the primary supply in the past 6 months and mostly located more than 10 km from the city center. This also poses a challenge for this segment, as only 5% of the market supply in the next 3 years will belong to this segment.

According to Mr. Vo Hong Thang, Investment Director of DKRA Group, the highlight of the real estate market in the second quarter was the strong increase in apartment sales in the primary market, up 88% compared to the previous quarter and 82% compared to the same period in 2023. Both the supply and sales of villas and townhouses in Ho Chi Minh City also increased significantly, reaching 12% and 4.5 times higher than the previous quarter.

"Market demand has improved significantly, with consumption increasing sharply compared to the previous quarter, mainly in projects with completed infrastructure and legal procedures, and developed by reputable investors in the market," Mr. Thang said.

Positive outlook

Statistics from the Ministry of Planning and Investment also show that real estate businesses have begun to grow again after two years of stagnation. The number of businesses resuming operations in the first six months of 2024 increased by 11.4% compared to the same period in 2023. The number of newly established businesses also recorded a 1.4% increase compared to the same period last year, demonstrating the attractiveness and development potential of the market. The average capital size per newly established business also increased by 29.7% compared to the same period in 2023.

Mr. Tran Khanh Quang, General Director of Viet An Hoa Real Estate Investment Company, stated that in the first six months of 2024, the Government implemented many comprehensive solutions to address difficulties in the real estate market, aiming for sustainable and healthy development. Simultaneously, it continued to improve the legal framework, remove obstacles related to administrative procedures and credit, and develop social housing. These measures have helped restore investor and homebuyer confidence, bringing the real estate market back to a stable growth trajectory.

According to Mr. Tran Khanh Quang, the market, while not yet meeting expectations, has been very positive. In particular, the last months of the year, when laws related to real estate come into effect, will see even more positive developments. Investors and stakeholders are preparing financial resources to invest, implement, or restart projects, thereby helping the market recover more strongly.

"The market has the potential to grow by 5% - 10% in the last six months of the year if the supply reaches 10,000 products of all types. To maintain high market liquidity like in the first six months, it requires that products supplied to the market are legally compliant; developers must have sufficient resources and credibility; payment policies must be favorable; and the brokerage force must be more professional after the recent rigorous screening process," Mr. Quang stated.

Regarding the scarcity of apartment supply and soaring prices, economist Dr. Dinh The Hien believes that the real estate market in recent times is not necessarily experiencing a shortage, but rather a lack of quality, legally compliant properties. If there were a shortage, other properties in the same segment, and even other segments, would also see price increases. In fact, the recent price increase has only been slight in the apartment segment because, over the past two years, this market has been unable to release a large number of units due to legal issues hindering many projects.

"In the coming period, when the new laws come into effect (1-8), the real estate market will be healthier and more transparent as legal obstacles are gradually removed. From there, projects will be gradually unblocked, more products will be supplied, contributing to reducing the housing shortage in the market. 'Ghost' projects, projects without sufficient legal documents that are still being sold and collecting money from customers, or the situation where people buy houses on paper and then leave them unfinished without knowing when they will be handed over will be minimized," this expert expects.

Prices for Grade A office space continue to rise.

According to Leo Nguyen, Director of Tenant Strategy and Solutions at Knight Frank Vietnam, in the second quarter, Grade A office rental prices in Ho Chi Minh City continued to rise along with other segments, reaching US$58.4/m2/month. This was due to increased demand for high-end office space in new buildings with green building certifications.

Leading the demand for office space in Ho Chi Minh City are technology and research and development companies, accounting for 51% of the total leased area. This is followed by pharmaceutical companies, accounting for 23% of the total leased area. "We forecast that the office segment will maintain a positive trend in the coming period due to the continued increase in demand from businesses and corporations," Mr. Leo Nguyen commented.

Source: https://nld.com.vn/thi-truong-nha-dat-dang-am-dan-196240715204610955.htm