Increasing demand for real estate transactions
According to the latest data from Batdongsan.com.vn, in the first two months of the new year 2024, real estate transactions have quickly increased and maintained a strong growth rate. Notably, in Hanoi and Ho Chi Minh City, land plots and project land have a higher level of interest than apartments. In January 2024 alone, the search volume for land plots in Hanoi increased by 110%, and project land increased by 77% compared to the same period last year. Meanwhile, the search volume for apartments in Hanoi increased by 71%; in Ho Chi Minh City, the search demand increased from 71-73% for land plots, project land, and only increased by 59% for apartments.
The real estate market is heating up. Photo: TTXVN
The above data partly reflects the demand for real estate ownership of many people, although the market is no longer experiencing a land fever like at the beginning of 2022. The Consumer Real Estate Sentiment Index report from Batdongsan.com.vn for the first half of 2023 also indicated that up to 65% of respondents plan to buy real estate within the next year. Among them, the proportion of buyers for investment purposes accounts for 60% and land plots are still the most favored type of property among future buyers.
In light of this reality, real estate brokers, trading floors, and developers have launched early marketing campaigns since the beginning of the year to seize the opportunity to reach a large number of potential customers. Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the southern region, stated that since the beginning of December 2023, when the draft Land Law (amended) received a lot of attention and discussion, land plot investors have started to return to the market. Representatives of real estate business enterprises all shared that the number of real estate transactions has increased since the beginning of the year, especially after the Lunar New Year, focusing mainly on products with standard legal status, priced below 2 billion VND, within a radius of about 60 km from the city center.
Real estate experts predict that many developers are determined to push their products early in 2024. It is forecasted that the new supply in the real estate market is improving, contributing to the rapid recovery of the real estate market.
“Foundation” for the new development cycle of the real estate market
The Vietnam Real Estate Association (VNREA) has made a forecast that 2024 will be the year to lay the “first brick” to build the foundation for a new development cycle of the market. This is also the last year the market overcomes obstacles to change in a positive direction.
In parallel with solutions to remove legal difficulties and ensure capital sources for the real estate market, the returning confidence of real estate business entities and investors is a positive factor. According to VNREA’s forecast, in the first and second quarters of 2024, the market will continue to maintain a good signal from the end of 2023, and from the end of the third quarter of 2024, the market will recover clearly.
In the first two months of 2024, the real estate industry welcomed the return of about 30 – 40% of real estate brokers and continued to grow through transactions in the market. Large-scale sales programs are starting to take place more frequently and continuously, not only thanks to the efforts of businesses but also thanks to mechanisms, policies, especially those related to credit and state policies.
According to Mr. Nguyen Van Dinh, Vice Chairman of VNREA, although it is not yet possible to affirm that the market will achieve brilliant results in 2024, it is certain that this year is the brick to build the foundation for a new development cycle of the Vietnamese real estate market. This development cycle depends on the resolute management of the Government and authorities at all levels in removing institutional barriers and stimulating appropriate real estate development.
VNREA recommends that real estate business entities continue to restructure their products, focus on feasible projects that meet the needs and financial capacity of the people; limit the development of investment-oriented products, prioritize the development of products to meet real needs; study additional attractive and practical incentives for both customers/investors and distribution units, real estate brokers; streamline the production process, apply technology and solutions to reduce real estate prices.
In addition, developers of tourism and resort real estate projects need to pay special attention to management and operation to ensure feasibility for rental options for customers/investors.
