Real Estate Market: Key Trends and Predictions for 2024
At the recent “Real Estate Dynamics 2024 – The Pivotal Year” Dialogue and Solutions Forum, industry experts and business leaders shared their insights on which segments will emerge as bright spots in the real estate market this year.
Mr. Bui Quy Trung, CEO of Flamingo Real Estate Joint Stock Company, believes that the residential segment will continue to lead the market in 2024. However, he notes that prices in certain urban areas are currently quite high, leading many investors to shift their attention to more affordable options outside the city center. It is expected that real estate in major cities will recover first, followed by expansion into neighboring regions.
“When the market recovers, it will spread to other segments such as vacant land and度假别墅,” Trung predicts.
Apartments continue to dominate the market this year.
Mr. Nguyen Dinh Duc, Deputy General Director of Mai Viet Real Estate Joint Stock Company, agrees that inner-city apartments remain highly sought-after. Since the beginning of the year, inner-city villas with moderate prices ranging from 15-25 billion VND have also been selling well.
“From mid-year to the end of the year, I anticipate strong demand for segments in developing provinces such as Bac Ninh, Bac Giang, Hai Phong, and Hung Yen, as well as vacant land in large urban areas with complete legal documentation,” Duc says.
Duc plans to invest in vacant land in the central areas of developing provinces that already have “red books” (land use right certificates). According to the new law, effective from January 1, 2025, subdivision of plots will be prohibited in type 1, 2, and 3 urban areas, leading to a potentially limited supply in central city locations.
When asked which segments will shine in this year’s market, Mr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association (VNREA), believes that any project currently offering products that meet market demand will be of interest. Housing remains in high demand among the population. Areas with housing projects, especially those involving land, will attract significant customer attention.
“We assess that even now, there is potential for premium office or commercial center products due to their scarcity. Particularly in Hanoi and Ho Chi Minh City, such products and projects are lacking, so we are not anticipating as large a market as this year,” he adds.
Dinh also concurs with Duc’s observation that suburban markets surrounding these cities are showing signs of improvement, particularly for projects that cater to investors and have clear legal documentation.
Mr. Hoang Hai, Director of the Housing and Real Estate Market Management Department (Ministry of Construction), suggests the inclusion of industrial real estate as another potential bright spot. With the recent influx of business ventures, industrial real estate has emerged as a promising sector.
Commenting on the real estate market in 2024, Dinh views it as a period initiating a new economic cycle, particularly in the real estate sector. This new cycle is anticipated to be more practical, aligning with actual needs, and all participants are likely to engage with a more realistic approach, considering both demand and resources.
“We believe that in this phase, it will not be easy to speculate or profit without substance. Therefore, we interpret this as the market transitioning towards genuineness and a more stable, sustainable cycle,” Dinh says.
