Closer to the Lunar New Year, the real estate market shows signs of prosperity when unwinding policies from the Government and efforts from investors come into play, opening up opportunities for recovery in 2024 as expected.
Supply increases, transactions improve
At the “Vietnam Real Estate Market Forum 2024 – Overcoming challenges” held recently, real estate experts cited data that in the fourth quarter of 2023, about 7.000 products will be launched on the market for the first time. The absorption rate improved with the number of transactions of about 5.700 products, equivalent to the third quarter of 2023, maintaining a decent growth momentum compared to the first two quarters of the year.
Towards the end of the year, supply improves in quality and quantity. In the fourth quarter of 2023, many large-scale launches of project developers, which were absent from the market before, have reappeared and attracted investors and customers.
The southern region with the key market of Ho Chi Minh City and neighboring provinces: Long An, Dong Nai, Binh Duong, Ba Ria – Vung Tau… is considered the most prosperous when a series of investors start construction, restart the project, follow key traffic projects, airports and international seaports are implemented. Transactions recorded a marked improvement compared to previous quarters.
Market developments, according to experts, show that a series of dismantling policies implemented by the Government in 2023 are effective, restoring investor confidence.
With the Government assigning the State Bank to direct commercial banks to have appropriate solutions, reduce costs to reduce interest rates, home loan interest rates have cooled down significantly. The popularity in the market is currently 6%/year to 10%/year, preferential within 3-6 months and increases to 10.5% – 13%/year when the offer expires.
At the same time, the fourth quarter of 2023 is also the time when the market welcomes large cash flows from remittances, securities and savings deposits, especially in the context of deposit interest rates reaching the bottom as in recent times.
Efforts to stimulate investor demand
The strengthening of customer confidence to get money down during this period also has an important push from the investors themselves. In addition to the fact that the products increasingly meet the actual needs of buyers, the launch projects are mostly carefully prepared legally, the effort to warm the market is also reflected in a series of attractive stimulus policies.
Previously, when the project was handed over, the interest rate support policy from the investor would expire, but now, home buyers can still find projects that are in the handover stage still supported with 0% interest rate. The payment value is also being reduced, instead of 30% of the product value as before, now only need 10% – 20% to be able to “carry the suitcase right away”. Payments are also split further, from 10% to 1% – 5% each, relieving buyers of financial pressure.
As at the Glory Heights apartment project in Vinhomes Grand Park urban area (Thu Duc city, Ho Chi Minh City), customers only need to pay 1%/month, receive the house after 2-3 years. Developer Masterise Homes launches a program that only needs to pay 20% to be able to “carry suitcases to live” in Grand Park, the remaining 80% of the value is supported by the bank, enjoying 0% interest until April 2025.
Special sales policies are also applied by investors of townhouse and villa projects. In Binh Duong, An Gia investor of The Standard project has handed over to customers to pay 10% to be able to receive housing immediately, the rest of the investor supports deferred payment for 24 months. In addition, this investor also commits to rent some townhouse and shophouse products for buyers.
In Long An, Imperia Grand Plaza Duc Hoa, MIKGroup’s latest project in the suburban market of Ho Chi Minh City with a chain of commercial townhouses (shophouses) is also gaining attention thanks to a series of special preferential policies. Customers can own a shophouse with an amount of only VND 450 million and enjoy preferential loan interest rate support up to 42 months, principal grace period of 48 months. Customers are donated by the investor and complete the interior package for the shophouse, and at the same time support to rent 30 million/month for 36 months.
Located in the heart of Duc Hoa district, the locality is expected to be upgraded to a city in 2025, Imperia Grand Plaza Duc Hoa is a chain of commercial townhouses divided into East Street with contemporary Asian architecture, Central Street with Indochinese architecture and West Street with neoclassical European architecture.
These streets are now new entertainment destinations for the people of Duc Hoa and surrounding areas. The activities to welcome Christmas and New Year 2024 organized by the investor recently attracted tens of thousands of attendees. Currently, the programs to welcome Giap Thin spring held on weekends are equally attractive.
Real estate experts assessed that customers are increasingly demanding with projects on legality as well as support policies of investors. Projects that meet these requirements will be prioritized for selection, in addition to the factor of future profit potential.
