Talk: Real estate market is out of balance between supply and demand

Residential and urban area projects in Long Thanh, Nhon Trach, Trang Bom districts and Bien Hoa city are very quiet because there are few customers coming to buy products. The reason why the real estate market in Dong Nai has not warmed up is because supply and demand are out of phase. Specifically, Dong Nai has more than 200 residential and urban areas that have been and are being built. Dong Nai is also a densely populated area, the demand for housing is very high, but most of them have low and average incomes, so they need to buy land and cheap apartments. However, the residential and urban area projects that have been and are being implemented have apartment and land prices mostly in the high-end and average segments, so very few people with real housing needs are eligible to buy. Because land and apartments in these projects cost from 2.5 to 10 billion VND/product, depending on location and area.

Therefore, most of the customers buy residential and urban projects for speculative investment, waiting for a profit to sell. For nearly 4 years now, real estate has hit rock bottom due to the Covid-19 pandemic, banks have tightened credit, so many investors have had to sell off products to recover capital. New investors are still afraid of the sluggish market, so they have not invested heavily in the real estate sector. In addition, the 2024 Land Law, the 2023 Real Estate Business Law, and the 2023 Housing Law have been issued and come into effect from August 1, 2024, including many changes. Therefore, many investors are still waiting, monitoring and also hesitant about the information that the State may impose high taxes on those who own a second or more real estate product.

In Dong Nai as well as many provinces and cities across the country, where industry is developed and population is high, the real estate market is lacking a lot of land and cheap apartments. If there are many projects, land and cheap apartments for sale, the real estate market in Dong Nai will be vibrant again.

Recently, the Government and Dong Nai province have had many solutions to support businesses investing in low-cost real estate projects for sale and rent to low-income people. Accordingly, the low-cost housing segment in Dong Nai has had some improvements when projects were started and accelerated, but still not as expected. For the real estate market to warm up, supply and demand must meet. At the same time, the Government needs to have more mechanisms, policies and support solutions to attract businesses to invest in the low-cost real estate segment to meet the real housing needs of the people.

Khanh Minh

Source: https://baodongnai.com.vn/kinh-te/202505/thoi-dam-thi-truong-bat-dong-san-dang-lech-pha-cung-cau-cd01ee9/