This year’s real estate market is forecasted to remain challenging. However, many optimistic experts believe that many segments have positive recovery signals, creating new opportunities for investors
Challenges intertwine opportunities
Many experts still believe that this year is a difficult year for Vietnam’s real estate industry. However, difficulties are also intertwined with many new opportunities. Positive factors such as a strong recovery, supportive policies and new planning will create a favorable environment for investors to decide to put down money.
A recent market report by the Vietnam Association of Real Estate Brokers (VARS) shows that in 2023, the Government and agencies and ministries have actively intervened to restore the real estate market.
In particular, nearly 20 moves from the Government have been announced continuously and strongly, contributing to strengthening confidence and strength for the market and stakeholders.
The association said that Resolution No. 33 dated March 11, 2023 is the most important signal, with clear guidance and guidance. Over time, mechanisms and policies from the Government increasingly reflect the actual needs of the market and businesses.
For the first time in many years, project investors have shown their enthusiasm for selling through a series of attractive stimulus policies such as discounts, promotions, extended interest rate support, along with early home receipt and extended payment period, including projects lasting up to 3 years.
The real estate market has received many signals from the removal of policy difficulties
Mr. Nguyen Van Dinh – Chairman of VARS – assessed that this year is a challenging year for the real estate industry, but also opens up great opportunities to revive the real estate market.
More specifically, when many provinces and cities have announced the planning on the market. These can be mentioned as Hai Phong City, Can Tho City, Da Nang City, Quang Ngai, Phu Tho, Ninh Thuan, An Giang, Ca Mau, Ben Tre, Kon Tum, Hai Duong, Binh Dinh…
Is it time to “down money”?
By the end of 2023, the real estate market has seen many large-scale projects start sales campaigns, diversify supply and boost transactions.
A real estate project is under construction in Ha Dong district, Hanoi city
ASS. Dr. Dinh Trong Thinh said that with low bank interest rates, investors will look for investment channels such as securities or real estate. The reduction in deposit rates coupled with new sales policies is stimulating trading.
Besides, new changes in the macroeconomic picture and expected economic growth are positive signals. It is said that the third quarter of this year may be the time of reversal of real estate and the second quarter of 2025 will be a prosperous time. Especially right after Law projects such as the amended Law on Housing and the amended Law on Real Estate Business are officially put into practice.
Sharing more about the positive points of the real estate market this year, Mr. Thinh emphasized that the strong development of apartments – product lines meet the real needs of the market. In the development of apartment products, social housing projects will also increase supply due to the openness of policy mechanisms.
“These two types will contribute to solving the housing problem that is painful in urban areas. This year’s real estate market also recorded the trend of many investors turning to apartment development because this segment is liquid, bringing fast and early cash flow”, Mr. Thinh stated.
In addition, according to the expert, the beginning of this year will bring a special opportunity for those interested in Vietnam’s real estate market. Positive factors such as a strong recovery, supportive policies, and new planning create an enabling environment for making investment decisions.
However, this choice also means that it is necessary to carefully consider investment strategies and objectives, to avoid regrets in the future.
Sharing the same view, Mr. Nguyen Quoc Anh, Deputy General Director of a unit specializing in real estate, forecasts that the real estate market will show signs of recovery starting from this year. But the extent to which real estate recovery will be slow and different in each type.
Accordingly, mid-end and affordable apartments will recover first because meeting the needs of the majority of home buyers, land plots and townhouses may be slower, falling around the second and third quarters of this year. Particularly for resort and commercial real estate, the recovery depends heavily on the growth trend of the economy and tourism and services and may last around the end of the year.
