In early 2023, real estate buyer sentiment will improve
At the Vietnam Real Estate Conference – VRES 2023 recently held in Ho Chi Minh City, experts forecast that the real estate market sentiment index in the first half of 2024 will increase by 3 points compared to the second half of 2023. Accordingly, the market sentiment index in early 2024 increased thanks to the level of satisfaction with the market, the belief that real estate prices will increase well in the future, the ability to buy a house, assessment of the market situation, policy and interest rates both increased.
Expert Dinh Minh Tuan – Director of Batdongsan.com. Vietnam in the Southern region sees a more positive psychology of real estate buyers and sellers as an opportunity for the market in 2024 to develop and overcome remaining difficulties in 2023.
Sharing the same opinion, Dr. Can Van Luc estimates that the early period of 2024 will be a favorable time for consumers to make investment decisions in the real estate market. Because this will be the period when interest rates decrease and real estate prices are moderated. After a long period of quiet, the real estate market will likely heat up from the first quarters of 2024.
Real estate buyer sentiment is expected to improve soon. Photo: Gia Lin
The year 2023 has almost ended with a rather quiet picture of the real estate market. Looking back over the past year, experts evaluate the developments of the following outstanding types: flexible and adaptable apartments, fluctuating townhouses, gloomy land and waiting for the right time.
Specifically, in the apartment segment evaluated in November 2023, the level of interest in apartments decreased by 20% compared to February 2023. However, the price of apartments for sale in Hanoi in the fourth quarter of 2023 still increased from 6% to 9% compared to the first quarter of the year (depending on the segment). In Ho Chi Minh City, the fourth quarter of 2023 saw high-end apartment prices remain unchanged, mid-range and affordable apartment prices decreased slightly from 1% to 4%.
Apartment prices have not decreased, but people’s ability to buy houses has increased thanks to flexible preferential policies from investors. Flexible sales and incentive policies are effective strategies to stimulate demand during difficult times and reach a broader customer group.
House rental prices are currently still anchored at a high level, although there has been an adjustment in Ho Chi Minh City in 2023. To be more suitable for affordability, apartments are smaller (in Ho Chi Minh City) and farther from the center. more attention (in Hanoi) is receiving more attention
Particularly for townhouses, in 2023, this type has witnessed negative fluctuations. The phenomenon of land return appears a lot on major streets in Hanoi and Ho Chi Minh City.
Mr. Dinh Minh Tuan explained that this situation stems from the decrease in townhouse business efficiency due to changes in user behavior and competition from shopping centers. Online shopping habits are increasingly popular, it is estimated that by 2023, the number of consumers shopping online will increase by nearly 9% compared to last year. Meanwhile, townhouse rental prices are still anchored at a high level, especially in the central area and have no tendency to adjust.
As for the type of land, according to statistics from Batdongsan.com. vn, although the number of loss-stop postings has decreased in the last quarters of the year, the market has not recovered in terms of interest and liquidity.
The apartment segment has been assessed as flexible and adaptable in recent times. Photo: Gia Lin
Demand for land in November 2023 decreased by 18% compared to February 2023. By the fourth quarter of 2023, up to 43% of surveyed brokers said that land transactions would decrease sharply (more than 50%), 31% assessed that land transactions would decrease from 10% to 50%.
Mr. Tuan assessed that in the coming time, the land market will continue to face difficulties. The Law on Real Estate Business (amended) takes effect from the beginning of 2025, tightening land division and sale activities, which may cause interest in land to continue to decline. Land prices will also be adjusted downward, especially for large plots of land.
“However, in the long term, land prices may continue to increase and transactions will return. Because real estate prices depend on other factors such as infrastructure deployment, economic growth, and people’s income. Meanwhile, land is a type that any member of the market can invest in due to the diversity of area, price, and region. For localities with rapid economic development, The land areas in this place will still grow sustainably,” Mr. Tuan said.
