The Prospects of Real Estate Market Recovery in 2024

The real estate market in 2024 is still challenging, but there are solid grounds for it to recover and continue growing in a safe, healthy, and sustainable way.

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The year 2023 concluded with Vietnam’s economy showing signs of recovery, macroeconomic stability, and inflation under control… Important achievements were made in various sectors, meeting the set targets, making Vietnam continue to shine economically in the region and globally. In the context of many difficulties in the global economy, Vietnam’s GDP for the whole year of 2023 still increased by 5.05% compared to the previous year.

From the perspective of investment channels

Although positive, 2023 also marked many ups and downs for investors. Investment channels such as real estate, stock market, gold, or savings… experienced unpredictable fluctuations, making it more difficult to choose profitable investment channels for the next year.

Regarding the stock market, 2023 was a turbulent year for investors. The stock market had many rapid increases and then drops, leaving many investors confused. There were times when the VN-Index surpassed the peak level of 1,245 points but then dropped back to nearly 1,000 points. In the last 2 months of the year, the VN-Index improved and closed at 1,129.93 points on December 29. Many experts believe that in the near future, the stock market will have a good performance but will not achieve as high profitability as in the previous period. The stock market is not stable, which makes investors hesitant, especially newcomers to the market.

If in the past, depositing money in banks was considered a relatively safe investment channel, the mobilization interest rate is now at its lowest level in history, making many people less enthusiastic.

Real estate is expected to be a bright spot, with expectations of recovery in 2024.

Motivation for real estate recovery

In the context of ups and downs in all investment channels, the real estate market is still highly appreciated due to its many bright spots. According to experts, although the market is still difficult, there are enough grounds to confidently affirm the prospects for recovery and continued growth in a safe, healthy, and sustainable development direction. According to him, the market will recover and grow back from the second half of 2024 onwards thanks to 3 driving forces. First is the amendment of Land Law and related laws to remove “legal obstacles” that hinder hundreds of real estate projects. Administrative reforms will continue to be strengthened to simplify and shorten the project approval time, issue investment certificates… The Government has also continuously issued important directives to stabilize, restore, and develop real estate, such as Resolution No. 1435, Resolution No. 33…

According to the forecast by the Vietnam Real Estate Research Institute, the market will recover from the second quarter of 2024. This prediction is optimistic thanks to the positive recovery of the economy, investment activities, trade, tourism; while the needs and payment ability of the people are increasing.

According to economist, Associate Professor Dr. Dinh Trong Thinh, the market is in a golden stage to increase durability, restructure and recover, enter a new growth stage. The market in the “quiet” period is a time for real estate businesses to demonstrate their capabilities, increase competitiveness in the market, come up with appropriate investment strategies, aiming to build a transparent, sustainable environment. The accompanying policies of the Government will soon revitalize the market, which may be from the second half of 2024, with a more efficient and effective purification state.

Regarding the prospects for market recovery, the Vietnam Real Estate Brokers Association (VARS) believes that 2024 is likely to be the last year of the “overcoming obstacles” process. Although it may not “explode,” the market will gradually stabilize. The first and second quarters of 2024, the market will continue to maintain positive signals from the end of 2023. And from the second half of 2024 onwards, the market will show evident recovery.

In Hanoi, the inner-city area is increasingly squeezed after 15 years of expansion due to rapid population growth while transportation infrastructure development is slow compared to the demand and general planning of the Capital. The trend of residents shifting to the West of Hanoi has actually been happening for many years and is expanding towards Thang Long Avenue thanks to bright spots in quality luxury apartments, synchronized service systems, and infrastructure development… Not only is it the most vibrant liquidity area, but the West of Hanoi is also becoming a favored residence attracting thousands of residents due to bright spots in: location, facilities, infrastructure, landscape, security… with a clear definition of lifestyle.

New projects in the West of Hanoi continue to attract customers thanks to synchronized infrastructure, integrated utilities, and guaranteed security.

Recently, a series of high-end projects from major developers continue to release units in the Western market, shaping a new face for the real estate market in the area. The record shows that the initial projects have continued to be well received with thousands of bookings after a few days of launch. Experts also predict that the West will continue to be a “stronghold,” leading the real estate market in 2024.

SOURCEcafef
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