In a recent sharing session, Mr. Nguyen Duy Ha, Director of Training and Project Development of Thang Long Real Group, shared that there has been a surge in interest for FIATO Uptown apartments (in the former Thu Duc district) in the past week, especially after the news of the three amended Laws taking effect from August 1st.
Mr. Ha noted that previously, the number of interested customers was uneven. In addition to the news of the early enforcement of the Laws, a series of positive infrastructure developments in the area, such as the completion of Ring Road 2 and still-favorable interest rates, have also influenced homebuyers’ psychology. Many people are optimistic about the positive shift in the market in the last six months of this year. However, the supply of new apartments entering the market will continue to be scarce due to the stricter regulations in the Laws for developers.
“The new Law will replace the concept of a price framework with a land price list. The land price list will be updated annually according to market prices. Along with tighter regulations for developers, development project costs will increase, supply will be limited, and real estate prices are forecast to rise sharply in the future. Recently, there has been a trend of buyers rushing to make purchases before the price level can change significantly from August 1st,” he emphasized.
The supply of legally completed housing will remain scarce in the coming period. Photo: Illustration
Sharing the same sentiment at a recent event, Mr. Luu Quang Tien, Deputy Director of the Institute for Economic-Financial-Real Estate Research of Dat Xanh Services, stated that the new Law requires developers to have strong financial capabilities to complete the project’s legal procedures before meeting the conditions to sign sales contracts. In addition, regulations on bidding, deposits, and other aspects have also become more stringent. As a result, existing projects that can be offered for sale at this stage will have a better advantage.
Mr. Tien pointed out that there has been a trend of “hunting” for real estate before the Laws take effect and before interest rates show signs of increasing. This is an understandable psychology for buyers. However, the market’s self-regulation in the coming period will be more robust. Opportunities will only be available for developers with strong financial capabilities to implement projects in the market, which means that the Laws will protect and enhance homebuyers’ rights and interests.
Observations show that Ho Chi Minh City’s real estate market has not seen any progress in supply. The eastern region of the city, which used to be abundant in apartment supply compared to other areas, is also quite stagnant. Some legally completed projects entering the market at this stage are receiving good attention due to the scarce supply and reasonable prices. Even the remaining inventory in old projects is now seeing improved demand.
In some densely populated residential areas, such as the former Thu Duc district and Binh Thanh district, transactions for large-sized apartments (ranging from 80 to 115 square meters) have resumed. For instance, FIATO Uptown, a rare source of reasonably priced luxury apartments in the former Thu Duc district (now Thu Duc City, Ho Chi Minh City), is stirring up the market. The apartments offer spacious living areas, a convenient location adjacent to Ring Road 2, and easy connectivity to Pham Van Dong, Vo Van Ngan, and National Highway 1A. The demand comes from a diverse range of buyers, especially those currently renting in the central districts of District 1 and District 3, who are seeking better living spaces with easy commutes but at more affordable prices than the city center.
Real estate prices are expected to continue their upward trend as the new Laws take effect. Photo: Illustration
Primary selling prices have increased by an average of 5-10%. In Ho Chi Minh City, luxury apartments (Grade A) witnessed the most significant price increase, reaching 20-30%. While there are still cases of secondary selling at a loss, a slight increase in prices has been observed across most product types. Rental prices for residential properties have also increased by 5-10%, especially in the apartment segment, reflecting the market’s stability and development. It is anticipated that this price level will continue to evolve as the new Laws come into force.
New price changes for land in Củ Chi (Ho Chi Minh City) ahead of Tet
Củ Chi, a district in Ho Chi Minh City, is known as a “price downturn” area in the real estate market. Currently, it is undergoing a price adjustment after a period of high demand due to development plans and infrastructure improvements.
Uncertain real estate tax may lower housing prices
According to VARS, taxing real estate may not necessarily lower housing prices due to the strong attraction of the city. Lowering housing prices will also increase demand, leading to a rise in prices and causing long-term repercussions for the economy.
Satellite urban area planning, cheaper residential land prices compared to agricultural land in Dong Anh and Thuong Tin
Hoà Lạc urban area is currently offering land at approximately 20 million VND/m2, which is much cheaper than the land prices in areas such as Thường Tín, Đông Anh, and other suburban areas.
Continuous Change and Adaptability, Affordable Housing Cravings to be “Satisfied” by 2024?
Developing affordable housing will open up opportunities to address the supply-demand imbalance and reduce the overall housing prices in the market. If the market as a whole collaborates and adopts market-driven housing policies, the development of affordable housing will progress alongside social housing.
Hot topics that stirred up Táo Quân tonight
Táo Quân never fails to intrigue and captivate audiences with its timely and thought-provoking social commentary. As the highly anticipated Táo Quân 2024 approaches, viewers are eagerly anticipating the hot-button issues that will be highlighted in this year’s show.
