[NEWS] - Real estate market recorded positive changes

According to real estate experts, in the first quarter of 2023, the market was still very quiet and gloomy when the supply was becoming scarce and the difficulties had not been resolved. However, the policies to remove difficulties of the real estate market from the Government and ministries are having many good signals, creating confidence for investors is being consolidated.

Difficulties still exist

According to information from Savills Vietnam Company, in the first quarter of 2023, the residential real estate market in the Hanoi area had many relatively "bleak" activities. Investors face many difficulties in securing capital in the context of high inflation and high-interest rates, leading to limited resources. Besides, the decrease in buyer confidence and the early Lunar New Year had a significant impact on the number of transactions in the first quarter.

Information about the apartment market, the number from this unit shows that the supply of primary apartments decreased by about 4% year-on-year. The new supply includes 2,040 apartments coming from two new projects, the next phase of the two projects decreased by about 30% QoQ. Primary supply is limited while prices are still trending up, which has created favorable conditions for the secondary market to develop.

For the market of villas and townhouses, in the first quarter, there was a limited supply of 29 villas from the project in Me Linh, down 96% year-on-year. Primary supply from 14 projects, down about 50% YoY. Transactions for the segment hit their lowest level since 2016, down 32% year-over-year. In the quarter, the primary price of villas decreased by 14% QoQ and adjacently decreased by 3% due to new supply and low inventory prices.

According to the market report of the Vietnam Association of Realtors (VARS), the cause of the depression in the real estate sector is due to a series of tightening policies on credit, corporate bonds, etc., as well as obstacles. legal issues have not been thoroughly removed, forcing all market participants to fall into a state of "waiting".

Notably, market liquidity has reached the bottom during the past few months, causing many investors to constantly postpone the opening and sale of products according to new plans. Customers holding money and waiting for the right time to deposit money accounted for 88.7%

Meanwhile, thousands of projects are still in a state of "immobilization" waiting to be removed. The market continued to record information on the dissolution and suspension of a large number of enterprises operating in the real estate sector.

Becoming positive

At the event to announce the real estate market report in the first quarter of 2023 with the theme "Be proactive" taking place on April 11, Deputy General Director of Batdongsan.com.vn, Mr. Nguyen Quoc Anh said. It is known that the positive developments from the Government’s economic, financial, and monetary policies are creating a positive sentiment for the market, contributing to directing the demand for real estate to its real value. That has contributed to changing the trend of buying real estate products during this time, leaning towards real estate types that can exploit cash flow and meet real needs. Interest in real estate products in the above segment recorded good growth in the context of poor overall liquidity.

In more detail, the type of apartments for real living and long-term investment is leading with demand accounting for about 27%, up 4% compared to 2022. Street houses and private houses are the type of housing. Real estate with commercial value gained a lot of attention with searches accounting for 20% and 9%, up 1% over the same period. In particular, there was also a strong growth in searches for the keyword "social housing" nationwide. This move has shown that this product line has an affordable price to serve real needs and has great attraction and is expected to play a key role in reviving the market’s liquidity in the near future.

With the apartment segment, the new supply in the second quarter of 2023 in Ho Chi Minh City may double compared to the first quarter, about 2,000 - 2,500 units, Long An about 200 units, Binh Duong about 500 - 1,000 units and Ba Ria - Vung The ship has about 350 new units for sale. The policy information is removed along with the State Bank’s move to lower interest rates to help the general demand recover, but it will be difficult for a sudden change in the short term.

In addition, according to experts, the 2023 forecast has many opportunities and challenges so that real estate businesses also need to proactively anticipate and restructure debt and capital sources; Collaborative operating model. In 2023, it will be an explosive year of M&A activities taking place among real estate businesses, increasing the supply market share of foreign investors. Investors should focus on developing product lines to meet real needs and restructure developed products to match purchasing power and market demand in the coming time.

Hoang Yen (Collection source)