Since the beginning of the year, investors have been planning to borrow money as real estate buying interest rates are at their lowest.
Prepared with a budget of about 3 billion VND, Ms. Bich Phuong (in Thanh Xuan, Hanoi) said, “During Tet, on weekends, my husband and I visit various projects such as adjacent houses, villas, and land plots around Hanoi. Even in other provinces like Hung Yen, Phu Tho, Bac Giang… Currently, with the low interest rates, I am very eager to save money. I believe that buying real estate and waiting for 1-2 years will yield more profits compared to other investment forms”.
According to recently published data from PropertyGuru Vietnam, interest in real estate has quickly increased after the Tet holiday. Prior to that, the nationwide real estate search volume started to rise from the 2nd day of Tet and continued to increase significantly. By the 10th day of Tet, the search volume had increased by 124% compared to the previous week before Tet.
People are starting to “hunt” for real estate in the context of historically low interest rates (photo: N.M).
Compared to the beginning of 2023, this year’s real estate market has shown more positive signs in terms of interest and listing volume. In January alone, nationwide demand for property search increased by 66% compared to the same period in 2023, and the number of property listings also increased by 52%.
It is worth noting that in Hanoi and Ho Chi Minh City, land plots and real estate projects have gained more interest compared to condominiums. Specifically, in January, the search volume for land plots in Hanoi increased by 110% and for real estate projects by 77% compared to the same period last year, while the search volume for condominiums in Hanoi increased by 71%. Similarly, in Ho Chi Minh City, the demand for land plots and real estate projects increased by 71-73%, while for condominiums it only increased by 59%.
“These data partly reflect the desire of many people to own land even though there is no longer a land fever like in early 2022”, the report emphasized.
Mr. Dinh Minh Tuan – Director of Batdongsan.com.vn in the Southern region – said that since the beginning of December 2023, when the draft Land Law (amendment) received much attention and discussion, investors in land plots have gradually returned to the market.
Mr. Tuan said that more than 10 land business units in Dong Nai, Binh Duong, Long An have shared that the number of land transactions has increased at the beginning of this year. Specifically, most transactions have focused on land plots with standard legal procedures and prices below 2 billion VND, within a radius of 60 km around Ho Chi Minh City.
In the Hanoi market, many real estate brokers have immediately returned to work after the Tet holiday, focusing on fulfilling real needs such as buying and selling secondary apartments or retail spaces in the inner city. The scarcity of supply and the ongoing demand have made the real estate market in these segments become more vibrant after Tet.
“Currently, many developers are determined to push sales early in 2024 because if they wait until 2025 when the amended Real Estate Business Law takes effect, it will be more difficult and time-consuming to generate revenue since at that time developers can only collect a deposit of no more than 5% of the house purchase price, and complete the remaining obligations before being able to collect an additional 25%. Therefore, it is forecasted that new supply in the real estate market will be improved in 2024”, Mr. Tuan commented.
According to the Vietnam Real Estate Brokers Association, the supply of houses and land in 2024 will be more regular and higher than previous years. It is expected that in the first 6 months of this year, about 15,000 new apartments will be released in Ho Chi Minh City and Binh Duong, not to mention existing inventory. Savills Vietnam stated that this year the number of newly launched apartments in Ho Chi Minh City will increase 4 times compared to the previous year. By 2026, this market will have about 116 projects launched, providing 40,800 new apartments.
