In the fourth quarter of 2023, Vietnam’s real estate market has improved in both supply and transactions. The Government’s drastic moves in promulgating mechanisms and policies will contribute to accelerating the market recovery process in 2024.
At the recently held ‘Vietnam Real Estate Market Forum 2024 – Overcoming challenges’, citing specific data, real estate experts said that in the fourth quarter of 2023, there will be about 7,000 first-time products. first launched to the market, total supply reached 21,774 products, an increase of 6% compared to the third quarter of 2023.
The number of transactions reached 5,710 products, equivalent to the third quarter of 2023 and double that of the first quarters of the year. The absorption rate continues to improve, reaching 26%, an increase of 12 percentage points compared to the same period in 2022 and equivalent to the third quarter of 2023.
Regarding the development of market segments, real estate experts believe that industrial real estate continues to lead the way with the entry of many large international ‘eagles’. This is considered the only segment with a price increase but is still well received due to its increasingly modern and smart level of perfection. We can mention a number of large industrial parks with the participation of foreign enterprises/foreign-invested enterprises.
M&A activities also achieved relatively positive results with the total value of the real estate industry in 2023 accounting for 23% with the majority of successful transactions from foreign investors and ranking 2nd in the world. Economics.
The year 2024 lays the ‘foundation’ for the new cycle of real estate
In addition to summarizing and evaluating the real estate market in the fourth quarter and 2023, experts at the event also made predictions about the real estate market in 2024.
According to Pham Thi Mien, Deputy Head of VARS Market Research and Investment Promotion Consulting Department, the real estate situation in Vietnam will change based on the world economic situation and macroeconomic management.
In the coming time, along with completing and passing the Land Law, the Government will continue to research and promulgate positive mechanisms and policies to accelerate the market recovery process.
‘Although, it cannot be confirmed that the market will achieve brilliant results in 2024. But this is the ‘foundation’ for the new development cycle of the Vietnamese real estate market. The residential real estate segment, especially social housing and affordable commercial housing, will promote its pivotal role, leading the entire market from mid-2024′, Deputy Head of the Market Research and Development Department. VARS Investment Promotion Consulting acknowledged.
From an economic perspective, Dr. Nguyen Minh Phong believes that, entering 2024, the real estate market will continue to face many intertwined opportunities and challenges, but the market will overcome the most difficult period, recording positive changes. Positive movements outweigh negative in both total supply and total demand, both input and output…
According to Mr. Phong, the basis for this optimistic forecast is that the results of transactions recorded in the market in 2023 have had a continuous increase in scale over time, reaching a total of 2,700 transactions in the first quarter of 2023; 3,700 transactions in Q2/2023 and 6,000 transactions in Q3/2023.
Data from the State Bank as of November 30, 2023 also shows that credit to the economy has reached more than 13 million billion VND, an increase of 9.15% compared to the end of 2022. Currently, deposit interest rates, Lending has decreased by an average of 2-3% compared to the end of 2022 and it is expected that lending interest rates will continue to decrease in the near future.
In particular, the penetration and effectiveness of policy dismantling and improvement of the legal environment are gradually deepening after 20 continuous moves implemented in 2023, with a series of Law projects that have been adjusted and approved. National Assembly passed.
‘One of the biggest problems in the market today is the legality of projects, accounting for about 70-80% of difficulties. If in the period 2024 – 2025, the bottlenecks in approving projects in new residential areas are resolved, the real estate market will recover, Dr. Nguyen Minh Phong emphasized.
Source: Government Electronic Newspaper (https://baochinhphu.vn/thi-truong-bds-se-co-buoc-chuyen-minh-trong-nam-2024-102240108102744839.htm)
