Real estate market thrives, entities ready to re-enter market

The real estate market has witnessed positive developments, with a slew of projects, including billion-dollar projects, being announced and called for investment in the first quarter of 2024.

This information was revealed at a conference held on April 15 by the Vietnam Association of Realtors (VARS) to announce a report on Vietnam's real estate market in the first quarter and the forecast for the second quarter.

According to Tran Van Binh, Vice Chairman and General Secretary of VARS, the Vietnamese economy has shown signs of vitality in the last quarter, and likely to maintain a positive growth trajectory. The Government, ministries and sectors have demonstrated high determination in promoting the real estate market, particularly in ensuring the safe and healthy development of the housing segment.

VARS's observations indicated that after a prolonged period of cautious monitoring of market developments, customers and investors are beginning to clearly show their interest in real estate, Binh said.

According to VARS's survey, up to 70% of customers and investors are willing to purchase real estate in 2024 if they find suitable products. Land plots and low-rise properties are the two segments receiving the most attention.

In the first quarter of 2024, a total of 20,541 products were supplied, including 4,300 new products. Notably, a series of billion-dollar real estate projects have simultaneously been commenced, ready to supply abundant sources to the market.

Le Dinh Chung, CEO of SGO Homes, remarked on the supply structure, saying that 1,250 affordable housing units were offered for sale in the first quarter, a growth rate of over 70% compared to the fourth quarter of 2023. Notably, 100% of the supply source came from social housing projects in many localities.

Furthermore, the absorption rate of projects continued to improve, reaching nearly 31%, up 5% compared to the fourth quarter of 2023, and 19% higher than the same period last year.

According to Pham Thi Mien, Deputy Head of Market Research and Investment Promotion at VARS, the proportion of transactions in the affordable apartment segment is trending downward due to a beginning scarcity in the supply. However, the proportion of transactions in the low-rise segment and land plots has improved compared to the previous period.

Currently, primary selling prices continue to maintain a stable trend, with an increase of about 2-3% compared to the previous quarter. New low-rise projects and land plots are priced quite reasonably.

Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association and Chairman of VARS, emphasised that the real estate market currently possesses sufficient elements ready to serve as a springboard for the recovery process./.