The real estate market to recover in the coming months

This is attributed to the government’s efforts through issuing Resolution 33/NQ-CP on removing difficulties and promoting the development of the market. The sector continues to grow stronger, taking place on a wider scale on both the supply and demand sides.

On the supply side, a number of projects (usually Novaland, with five significant projects) have been resumed. According to Savills, in the first six months of 2023, new supply in Hanoi surged by 76% quarter on quarter and 125% year on year. Meanwhile, the main market received almost 20,000 flats, a 5% quarter-on-quarter and 14% year-on-year growth.

On the demand side, the demand for purchasing real estate in the United States climbed by 6% in July 2023. Condominiums and villas have recovered the fastest, with a 7% gain over the previous month; land plots grew by 6%; and private homes and project land increased by 3%.

There has been a slight movement in the real estate market in most provinces and cities in July. Particularly, Hanoi and Ho Chi Minh City increased by 9% and 8%, respectively, compared to the previous month. Meanwhile, Quang Ninh has changed dramatically, increasing by 18%; Hai Phong and Da Nang increased by 9% and 8%, respectively.

Furthermore, sales income for many significant projects is documented at a high level. Glory Heights at Vinhomes Grand Park (Ho Chi Minh City), in particular, caused a "blockbuster" market by selling 2,000 units in 34 hours.

In assessing the market, Dat Xanh Mien Bac General Director Vu Cuong Quyet said that the market's buying power has rebounded greatly in the recent three months compared to the prior time. The number of monthly transactions, in particular, has increased at a pace of roughly 30% since the peak 1.5–2 years ago, when it reached 300–400.

Only the suburban and subdivision land segments in localities without real demand will reduce the price. Meanwhile, apartments in Hanoi will still increase steadily, on average 5% - 8% per year, with condominiums increasing by 10% per year or more.

It demonstrates that genuine demand is quite strong; the fact is that catching the bottom in the apartment market is difficult. Following Mr. Quyet's study, the Vietnam Association of Real Estate Brokers (VARs) official report concluded that supply would continue to recover and develop in a more transparent manner beginning at the end of the third quarter. Meanwhile, demand has progressively steadied and increased.

The best time to buy

A market that has reached a bottom and is beginning to rise in value. Because of a variety of variables, including product quality, low costs, many incentives, and high-potential profit-sharing, now may be an excellent moment to acquire and perhaps benefit from the rising trend.

According to Vu Kim Giang, Chairman of SGO Group Joint Stock Company, deep discount forms (up to 2 digits) disappeared. Particularly, investors prioritize supporting payment cash flow and interest rates for customers.

Cheap borrowing rates are also beneficial to buyers. Since March, the State Bank of Vietnam has cut interest rates four times, resulting in an average interest rate drop for loans.

Many industry professionals agree with Nguyen The Diep's proposal, Vice Chairman of the Hanoi Real Estate Club, to acquire real estate today. There may not be a better moment to invest in real estate than now, given the present market circumstances.

Mr. Marc Townsend, Acardia Consulting Vietnam Senior Advisor said that the real estate market is cyclical by nature, and after a downturn, it tends to recover. The current improvement in liquidity is a positive sign for the market’s new upward cycle.

Source: VietnamFinance