[NEWS] - Will the real estate market prosper in 2024?

Sharing the story of the real estate market with MarketTimes, Mr. Vu Cuong Quyet - General Director of Dat Xanh Mien Bac said that in recent times, the policy for the real estate market has many positive points and he expects this year to be positive in 2024 will be a good time.

The real estate market continues to face difficulties, many businesses have launched policies to support home buyers.

According to Mr. Vu Cuong Quyet, in the past 6 months, it has been really difficult for the market of land plot investors and high-end apartment projects to buy and rent. However, at present, the market has started to have pretty regular transactions but the number is not much and most of these transactions are directed towards real housing needs.

In Hanoi, a market with 10 million people still has good room, but customers still find it difficult to access housing. The reason is that lending interest rates are still high, and the financial resources of people buying real houses are still limited.

In such a context, Dat Xanh Mien Bac has had excellent promotional policies to create favorable conditions for home buyers. Especially the payment policy for some projects such as Tecco Garden (Thanh Tri), and An Lac GreenSymphony (Hoai Duc), customers can extend payment up to 24 months and can move in immediately.

That Xanh Mien Bac also has "robust" policies such as a commitment to buy back from customers after 18 months if customers do not stay. If the customer cannot afford to pay, we offer an obligation to buy back to the customer. At the same time, Dat Xanh Mien Bac supports that customers can borrow from banks with interest rates for about 18-24 months…

The State Bank has moved to stimulate the real estate market, including spending a package of 120,000 billion VND to create millions of social housing. However, so far there has been no positive signal.

This is the right policy to support the recovery of the real estate market, but it has not been disbursed yet. The first reason is that it is not known where to disburse because, in the past 5 years, very little supply of social housing has been put on the market in both big cities. According to statistics, in 2023 in both cities, only 1-2 projects are eligible to be put on the market. In Hai Phong and Bac Ninh, there are projects put on the market, but it is very difficult for workers to borrow to buy social housing.

The second reason is that workers are low-income earners, The interest rate on social housing loans is very high, only 2% lower than commercial loans, so it is still close to 9%/year. With this interest rate, low-income people cannot afford to pay. In 2013, the loan interest rate was very reasonable, just over 4%/year for low-income social housing buyers.

The next reason is that the procedure for buying social housing and getting a loan to buy a social housing package is very complicated. For example, we have projects in Bac Ninh, Bac Giang, and Hai Phong... but the procedure to borrow social housing has not been guided yet and the loan interest rate is still high, so it is not attractive to buyers. All these difficulties need solutions to support social housing.

In the past time, there are good signs because the provinces have also started to implement plans to build social housing. In my opinion, the 120,000 billion VND package will work, but it also needs a delay of about 6 months to 1 year. Together with the reduction in lending rates for social housing, I think this credit package will be a lever for the market to recover.

Market in the last 6 months of the year

Looking back at the market, it can be seen that in the first 6 months of 2023, the market is very difficult. But recently, the policy for real estate has had positive points.

Firstly, the State Bank is very close to lowering interest rates, especially input interest rates, When lowering input interest rates, output interest rates for businesses and individuals will be better, lower interest rates. financing costs will be lower, and homebuyers’ borrowing costs will be better.

Secondly, the amount of money in the bank is abundant. In the past 3 months, loan disbursement packages, especially for individuals to buy houses, are very good, but still a bit high.

Third, the State Bank requires joint-stock commercial banks to reduce lending interest rates for homebuyers as well as businesses.

All the signals from the bank I predict will stimulate home buyers, especially homebuyers with real housing needs and those with long-term investment needs.

As for real estate prices, from now until the end of the year there will be no sudden changes, but will wait until next year to prosper, we can be completely confident about this.

Hoang Yen (Collection source)