[NEWS] - Revealing real estate segments that will be vibrant again in the near future

According to experts, the real estate segment serving real needs will be more vibrant at the end of this year. As for the investment real estate segment such as land, it will increase more slowly around the second quarter of 2024.  

In a recent survey of real estate types that receive a lot of attention from customers in the second half of 2023, Dat Xanh Services Research Institute (DXS - PERI) said that apartments are the selected subdivision overwhelmingly chose more than $73, 15% chose low-rise houses and 10% chose land and resort real estate only accounted for 2% of the answers.

Regarding the apartment price range that customers are interested in, DXS - FERI surveyed about 82% of responses from customers choosing apartments with prices under 2.5 billion VND, 13% choosing apartments from 2 5 - 3.5 billion VND, only about 5% choose the price bracket over 3.5 billion VND.

"The results of this survey have shown that customers’ choices are shifting strongly toward real estate products to meet their real housing needs at affordable prices," said DXS-FERI.

Mr. Vu Cuong Quyet - General Director of Dat Xanh Mien Bac Real Estate and Services Joint Stock Company said that Hanoi and Ho Chi Minh City markets are still the two markets that will recover the most because of their large population size and high demand. Other places will recover following these two cities.

"The housing segment serving real housing needs such as social housing and apartments with fairly average prices, prices from 30-40 million VND/m2 will recover first," Mr. Quyet assessed.

Sharing this opinion, Dr. Nguyen Van Dinh - Chairman of the Vietnam Association of Real Estate Brokers (VARS), also said that the apartment and real house segments have great appeal, especially in Hanoi and Ho Chi Minh City, where demand continues to increase. The current problem is that the selling price has reached a reasonable level ranging from 30-25 million VND/m2, and real buyers will rush in to buy.

“At the end of this year, the real estate segment serving real needs will be more exciting than at the beginning of this year. As for the land subdivision, it is considered heavily speculative, so there will be a slower recovery," Mr. Dinh said.

According to Batdongsan.com.vn’s consumer psychology report and real estate trends at the end of 2023, out of 1,000 survey participants, 61% plan to buy real estate within 1 year. next. This shows that buyer sentiment is gradually recovering sooner than before, especially when the real estate market is quiet.

The report also shows that among the group of people planning to buy real estate for investment, up to 46% revealed that the product they are aiming for island. Ranked second are apartments with 24%, and private houses, villas, and townhouses, with 18%, 4%, and 8% selected respectively.

According to the assessment of land developments, Mr. Tran Khanh Quang - General Director of Viet An Hoa Real Estate Company said: "If it is fast, it will be in the second quarter of 2023 that the land will warm up. Because, policies related to credit interest rates need to have at least a delay of 3-6 months, often going slower with market development. Therefore, 2024 must be the time for the land market," Mr. Quang emphasized.

Mr. Quang also said that investment in transport infrastructure is being promoted and has an indirect impact on the land segment. However, in the current context, it is difficult for infrastructure factors to have a clear impact. It takes at least 2-3 years to have an impact on real estate prices.

According to Mr. Quang, the impact of infrastructure must be at the right time, place, and place. Not every place where infrastructure passes through makes real estate bustling. The future of the land segment is the center of large cities and suburban areas at a distance of 30-50km. The connection between infrastructure and real estate is not measured in kilometers but also in travel time.

This person also emphasized that compared to land in big cities, land in the province will tend to be one step slower, and it will take until 2023 for there to be a signal. “Recently, land transactions in the city. Ho Chi Minh also only sporadically, mainly from products with extremely high prices. Overall liquidity is still quite weak.

Land market in suburban areas of the city. Ho Chi Minh went through a rather difficult period. This type of investment is quite high. From the end of 2022 until now, land prices are commonly reduced, ranging from 5-30% (depending on the area). If we want to restore liquidity, land in City. Ho Chi Minh will recover first, then spread to neighboring provinces," Mr. Quang gave evidence.

Indochina Holding also wants to contribute a small part to the recovery of the current real estate market. Our unit currently has many projects with bad debt at DATC and VAMC credit institutions that are introduced to businesses to provide good investment opportunities.

Hoang Yen (Collection source)