New signals in the real estate market

According to real estate research units, the market has recently recorded a certain improvement thanks to the policies of the Government and localities, along with the drastic interest rate reduction move of the State Bank.

Hundreds of projects have been cleared

Based on the synthesis of documents and reports from 8 ministries, branches and 41/63 provinces and centrally-run cities, the Ministry of Construction recently reported on the situation and results of the implementation of Resolution No. 33/NQ-CP of the Government on a number of solutions to remove obstacles and promote the safe, healthy and sustainable development of the real estate market.

Deputy Minister of Construction Nguyen Van Sinh said that recently, the Prime Minister 's Working Group on inspection, review, settlement and removal of difficulties and obstacles related to projects and the Ministry of Construction have received 112 documents reporting difficulties, obstacles and recommendations from localities, enterprises, associations and people related to 174 real estate projects. According to the assigned functions and tasks, the Working Group and the Ministry of Construction have reviewed and processed all 112 documents.

In Ho Chi Minh City, the Working Group responded and provided direct and written guidance on about 30 recommendations related to difficulties and problems of 180 housing and urban area projects. The difficulties were mainly due to the incomplete and incorrect understanding and application of the law by the local authorities. After the Working Group and the Ministry of Construction discussed and provided guidance, the difficulties and problems were basically clarified and fundamentally resolved.

"According to information from the Ho Chi Minh City Department of Construction, up to now the city has directed and resolved 67 projects (equivalent to 37.2% of the initial 180 projects), of which 28 projects were under the guidance and supervision of the Working Group; 39 projects were reviewed by localities" - Deputy Minister Nguyen Van Sinh said.

Tín hiệu mới trên thị trường bất động sản - Ảnh 1.

Many customers are interested in the apartment project of Nam Long Company opened for sale last weekend. Photo: SON NHUNG

In Hanoi, the Working Group has responded and provided direct and written guidance on about 20 recommendations related to difficulties and problems of 712 housing and urban area projects. "After discussion and guidance, Hanoi has so far directed and resolved 419 projects (equivalent to 58.8% of the initial 712 projects). The city is currently directing the resolution of 293 projects," said a leader of the Ministry of Construction.

In Dong Nai province, the Working Group answered and provided direct and written guidance to 7 large real estate projects, including projects of Novaland Group, Hung Thinh Group... Identifying problems related to urban planning and construction (inconsistencies between 3 planning levels) under the authority of Dong Nai Provincial People's Committee, thereby answering and guiding the province to remove difficulties and obstacles.

Deputy Minister Nguyen Van Sinh said that localities are still actively focusing on resolving difficulties and obstacles for real estate projects. However, the leaders of the Ministry of Construction admitted that resolving difficulties and obstacles for real estate projects is still difficult because the implementation process of many projects is long, the law has changed a lot over time; some officials, civil servants, agencies and law enforcement units have a mentality of fear of mistakes, fear of responsibility, fear of legal risks, leading to shirking, avoidance, slow resolution, not daring to propose, not daring to decide.

Trading is bustling again

Data released by Batdongsan.com.vn shows that in July 2023, after a decline in real estate supply and demand throughout the first half of 2023, interest in real estate transactions nationwide increased by 6% compared to June, and the number of real estate listings also increased by 4%. These indicators continued to increase in August. Batdongsan.com.vn's big data also reflects that the demand for real estate nationwide increased by an average of 5% compared to July, and the number of listings also increased by 2%.

Notably, in August, in the Hanoi market, land plots were the type of property with the highest demand, up 12% compared to July. Apartments, private houses, townhouses, and villas also saw an increase in interest of 7% - 9%. However, searches for project land decreased by 7% compared to July, indicating that this type of property needs more time to recover.

In Ho Chi Minh City, the highest demand for buying houses and villas (up 7%). The level of interest in apartments, private houses and project land still maintained a stable growth rate, from 2% - 4% compared to July. Land was the only type of property with a slight decrease of 1%.

Ms. Thuy (living in Binh Thanh District, Ho Chi Minh City) boasted that she had just successfully sold a 125 m2 plot of land at the end of July in Thu Duc City for 12.5 billion VND. She said that the plot of land had been on sale since the beginning of the year but almost no one had asked about it. "At first, I asked for 14 billion VND, waited until July for a broker to bring customers to see it and negotiate down to 12.5 billion VND, I immediately agreed because the bank loan was overdue" - Ms. Thuy said.

Mr. Hai, a real estate broker in Ho Chi Minh City, said that in the past 3 months, he has successfully completed about 10 transactions, mostly land plots priced at about 3.5 - 4.5 billion VND/plot and apartments in the area, while townhouses are still under negotiation. Recalling the first months of 2023, Mr. Hai said that it was a very stressful time, he wanted to quit his job because for several months there were no successful transactions, only a few days a few customers contacted to ask for prices but only to probe the market.

According to brokers, their work has recently become "easier" as the real estate market is starting to recover. In addition to policy reasons, real estate owners have been holding onto their inventory for quite a long time, and when the bank loan repayment deadline comes, they have to accept deep discounts, allowing buyers to buy products at reasonable prices. As a result, liquidity in the market has improved.

Mr. N., the leader of a real estate company based in Thu Duc City, admitted that the company's brokerage revenue from July until now has had quite positive changes. Investors have proactively contacted to learn about the products and are most interested in land and apartments in the East of Ho Chi Minh City because the prices are more affordable and profitable than real estate in the central area.

Not only small transactions, some recently opened projects have also recorded many positive signals. Specifically, last weekend, Nam Long Investment Corporation organized an introduction of AK NEO detached apartments in the Akari City project phase 2 (Vo Van Kiet Avenue, Binh Tan District, Ho Chi Minh City). The event attracted about 500 customers, the sales that the investor announced at the ceremony were up to 600 billion VND (each 2-bedroom apartment costs from 3 billion VND).

Masterise Homes Group has just opened for sale 20 long-term ownership shophouses at the Lumiere Riverside project (Thu Duc City) with an average price of 30 - 80 billion VND/unit. According to the investor's announcement, the total amount of goods sold reached more than 850 billion VND.

According to market experts, the demand for real estate for living and investment remains high, but due to unpredictable market fluctuations and unstable bank interest rates, buyers are hesitant to spend money. However, with the development of the economy, many believe that from now until the end of 2023, the real estate market will be even more bustling.

Many projects restart

Last week, Chairman of the Ho Chi Minh City People's Committee Phan Van Mai assigned the Department of Planning and Architecture to coordinate with relevant units to plan and prepare for the planning competition for the Rach Chiec Sports Complex, Saigon Safari Park and the Binh Quoi - Thanh Da peninsula urban area.

In addition, some projects have resumed construction after a temporary suspension, including the Victoria Village project in Thu Duc City of No Va Real Estate Group Corporation (Novaland). This is considered positive information to promote the recovery of the real estate market in Ho Chi Minh City.

Source