The property market is expected to recover

According to a recent DKRA Vietnam research, the land sector is recovering faster than other forms of real estate such as resorts or flats. Many appealing rules have been implemented for clients who want quick payment alternatives. Many developers have also broadened their customer assistance options, such as interest rates, principal deferral, and promotions.

Notably, on June 16th, the State Bank of Vietnam announced an interest rate adjustment. According to a poll conducted by Batdongsan.com.vn, bank interest rates for house loans range from 4.99% to 13.5% per year in June. It can be observed that the State Bank has implemented an interest rate reduction policy for the fourth time in a row, which is regarded a favorable signal for the economy and is projected to have a beneficial influence on the real estate market.

According to real estate analyst Tran Khanh Quang, the present market is not beneficial for sellers but favourable for buyers. Not only are real estate items reasonably priced, but homebuyers are also receiving several benefits from developers' payment plans. Furthermore, given the current financial troubles, developers are eager to assist clients by extending payment deadlines. As a result, this is an excellent time to buy and invest in real estate.

In particular, a condominium building in Binh Duong has implemented attractive measures such as up to 14% discounts and developer-supported loan rates covering around 65% of the entire apartment value over a 4-year term. Many of the sales incentives provided by developers were not part of their prior marketing plans, but were implemented to boost real estate transactions.

Mr. Nguyen The Diep, a member of the Vietnam Real Estate Association, said with the passage of the modified Land Law 2023, legal barriers to the approval of new housing projects would be removed, progressively expanding housing supply.

With over 27,000 newly launched residential real estate goods, it is expected that the resort category would continue to shrink owing to developer capital difficulties. The industrial real estate industry, on the other hand, will continue to grow as a result of a number of possible projects relating to electronics and energy.

The consumer sentiment and real estate trends report for this year by Batdongsan.com.vn also indicates that approximately 68% of the population plans to buy houses or land within the next year. In 2023, the percentage of people intending to buy real estate is 46% for those who currently do not own any property, 79% for those who own two properties, and as high as 87% for those who own more than three properties.

It can be observed that the population's desire for real estate ownership for practical and speculative purposes remains high, with purchasers prepared to pay between 40% and 60% of their income to purchase houses through installment payments.

According to Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, the market is expected to experience positive developments as a result of the Government's economic and monetary policies, which will help to align real estate demand with its true value. As a result, the real estate market is predicted to reverse its trend in 2024 if macroeconomic policies continue to be implemented positively as they are now.