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Is the real estate market entering a new cycle?

Is the real estate market entering a new cycle?
Is the real estate market entering a new cycle?

Compared to the beginning of 2023, the current real estate market has had many positive changes. Besides, the confidence of buyers in the market is assessed to have gradually recovered.

Minister of Construction Nguyen Thanh Nghi said that in recent times, in response to difficulties facing real estate businesses, the Government and Prime Minister have issued many important instructions and the Prime Minister’s Working Group , of ministries, branches and localities. Including the Ministry of Construction and the State Bank of Vietnam, they have been extremely proactive in grasping the situation and specifically assessing the difficulties and obstacles related to the real estate business sector, from which to implement solutions. Troubleshooting solutions and specific instructions for real estate projects.

“The real estate market has shown more positive signs. It can be said that there are still many difficulties but the market has overcome the most difficult period,” said the Minister of Construction.

According to Savills Vietnam, from the fourth quarter of 2023, the market will have more positive changes, the recovery momentum is clearly shown because interest rates have cooled and banks are starting to support businesses and businesses. Customers can buy houses more effectively, and policies to remove difficulties from the Government are gradually taking effect.

Mr. Le Hoang Chau, Chairman of the City Real Estate Association. Ho Chi Minh City (HoREA) assessed that the real estate market has gone through the most difficult period and it can be said that the first quarter of 2023 is the bottom zone of the real estate market.

However, overall, the current real estate market is still very difficult, but the level of difficulty tends to decrease over time, each month is better than the previous month, the next quarter is better than the previous quarter.

Mr. Chau said that the real estate market has the prospect of recovering and growing again from the second half of 2024 onwards thanks to the following incentives.

Firstly, competent State agencies are making efforts to remove legal problems, which are the biggest problems in the real estate market, along with removing difficulties for hundreds of real estate projects, in order to create business investment environment towards transparency, fairness, healthy competition, creating favorable conditions for investors to access land, capital markets, and credit.

Second, the demand for housing to meet real housing needs in society is still very large, especially the need for affordable housing and social housing for a large number of middle-income and low-income earners. low income.

Third, the middle class is continuing its steady growth trend, although the income of the general population is currently declining.

Dr. Nguyen Van Dinh, Chairman of the Vietnam Association of Real Estate Brokers (VARS), said that the market has recorded positive signs of recovery with more segments and regions showing signs of “breaking the bottom”.

Mr. Dinh said: “If, in the past, secondary transactions only appeared mainly in the segment of land plots and residential houses priced under 3 billion VND, then recently, with more positive information from the market, market, demand is improved with more options when more diverse supply is added from loss-cutting products of investors, from collateral assets such as real estate sold by banks, etc. Interest rates have been adjusted to decrease significantly, approaching the level of early 2022. Idle cash flow among the people, although not much, has begun to return to real estate investment. Townhouse and villa products over VND 5 billion, whose prices have been flat for a while after cutting deep losses at the beginning of this year, have been accepted by investors to pay down, starting a new growth cycle.

Information from brokers who are members of VARS also shows that more investors have begun the journey of “hunting” for land, in areas on the outskirts of big cities and strongly developed localities. infrastructure and high urbanization rate with prices considered to be quite “bargain”, with much room for growth in the future.

And Mr. Nguyen Manh Ha, Permanent Vice Chairman of the Vietnam Real Estate Association said: “By 2022, the real estate market will go down, the Government has many policies, and support from banks, I found that the recovery time can be shortened compared to previous years, but recovery will not be possible until 2024.”

The article is in Vietnamese

Tags: real estate market entering cycle


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