According to the latest data from Batdongsan.com.vn, after the Lunar New Year holiday, the interest in real estate from people and investors unexpectedly increased significantly. The nationwide real estate search volume started to rise from the 2nd day of the Lunar New Year (February 10th), reaching a 124% increase compared to the week before the Lunar New Year by the 10th day (February 19th).
Strong increase in search demand
Previously, in January 2024, the demand for real estate search in the whole country had increased by 66% compared to the same period in 2023, and the number of real estate listings on Batdongsan.com.vn also increased by 52%. The most popular segments were apartments, land plots, and project land plots. Specifically, the search volume for land plots in Hanoi increased by 110%, project land plots increased by 77%, and apartment searches increased by 71% compared to the same period last year. In Ho Chi Minh City, the demand for land plots and project land plots increased by 71%-73%, and apartments increased by 59%.
The Consumer Sentiment Index (CSS) report, also conducted by Batdongsan.com.vn, showed that 65% of respondents expressed their intention to buy real estate within the next year. Among them, land plots were the most popular type.
According to this report, the psychology of buyers and sellers has become more confident compared to 2023. In an interview with Người Lao Động newspaper, professional investors expressed their trust in the potential price increase of real estate as factors such as interest rates, policies, and market conditions are showing positive changes. Ms. Minh Lan (residing in Thu Duc City, Ho Chi Minh City), who has been investing in the real estate market for many years, said she has seen a return of “fresh money” to the market since late 2023. Houses and project land plots in the city center have been traded, including future projects like Aqua City by Novaland in Dong Nai, which are attracting many customers with greatly reduced prices. “Many people in the real estate investment group I’m in are excitedly searching for cheap deals, with the expectation of profit in the next 3 years,” Ms. Minh Lan informed.
Even the resort real estate segment, which had been difficult for the past few years, is now showing positive signs. Mr. Mauro Gasparotti, Director of Savills Hotels, stated that demand in this segment is gradually recovering at a stable pace. This demand comes from both the international and local markets, thereby reinforcing confidence in the resort industry. Many projects have also been in the process of restarting over the past few months. “With the advantage of connected infrastructure and a variety of tourism products and accommodation options, Da Nang is expected to continue leading the recovery. In Ho Chi Minh City, luxury hotels are expected to maintain their competitive edge in the next few years as new supply remains limited,” Mr. Mauro Gasparotti mentioned.
In the first months of the year, the demand for real estate is increasing sharply. Photo: TAN THANH
Ahead of the curve
Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn, stated that in the context of the warming real estate market at the beginning of the year, brokers, trading floors, and developers have launched early marketing campaigns to seize the opportunity to reach a large number of potential customers.
According to Mr. Tuan, the real estate market in the southern region has received significant attention from investors since the beginning of December 2023. Over 10 business entities selling land plots in Dong Nai, Binh Duong, and Long An have expressed their belief that the number of land plot transactions will increase this year, focusing on plots with standard legal documents, prices below 2 billion VND, and within a 60 km radius of Ho Chi Minh City.
In the housing segment, Nam Long Investment Corporation announced that after achieving good revenue from selling 5 projects in 2023 such as EHome Southgate (Long An) with prices starting from 1 billion VND per unit; Akari City Phase 2 (Binh Tan District) and Mizuki Park Urban Area (Binh Chanh District) in Ho Chi Minh City with prices starting from 3 billion VND per unit; EHomeS social housing in Nam Long II Central Lake Urban Area (Can Tho) with prices starting from 600 million VND per unit…, in 2024, the company will continue to release thousands of reasonably priced housing products to meet the needs of customers in Ho Chi Minh City and other localities such as Long An, Dong Nai, Can Tho…
Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, believed that with the current developments, the real estate market will enter a growth cycle from mid-2024, ahead of the effective dates of several laws including the amended Land Law, the amended Housing Law, and the amended Real Estate Business Law starting from 2025. According to Mr. Chau, the demand for housing and real estate investment in Vietnam is still very high, and the supply will gradually increase as legal barriers to investment in commercial housing projects and social housing are gradually removed. In the near future, about 1,000 projects will be unblocked, and developers will have convenient access to capital and credit markets to restart projects. “Current real estate businesses have understood their strengths and weaknesses and understood the market; therefore, they have proactively restructured and reorganized housing products towards meeting actual demands, reducing house prices to reasonable levels to stimulate market demand,” Mr. Chau provided information.
Other experts also believed that the resort real estate sector is beginning to show signs of recovery, indicating that the market has officially entered an upward trend. When this segment attracts the attention of consumers, it means that other segments have already taken a step forward.
Significant increase in ready-built factories
Mr. Alex Crane, CEO of Knight Frank Vietnam Real Estate Consulting Company, believed that the industrial real estate sector has a bright future in terms of investment flow, development of high-quality ready-built projects, and positive changes in land prices recently. The number of rented ready-built factories has tripled since 2016. The supply of ready-built factories is expected to increase by an additional 65% within the next 3 years, meeting the needs of both existing tenants and new investors and businesses entering the market.
