Will the real estate market recover in 2024?

>> Resolution No 33: A boost for the property sector

According to Batdongsan.com.vn's Q1/2023 real estate market study, this industry has received positive news from policies in the first three months of 2023.

Interest rates have begun to fall following Decision 313/QD-NHNN, and policy rates are also being reduced. Decree No. 08/2023 has helped to relieve pressure on enterprises to pay bonds and restore market trust. Resolution 33/NQ-CP is viewed as a chance to "unlock" legal elements, reduce financial barriers in real estate, and encourage its growth.

Investors are waiting for opportunities from property market.

Moreover, the government's official approval of a credit package of VND 120 trillion to develop social housing and workers' housing with preferential interest rates of 8.3% per year will ease the housing shortage and promote the real estate market to develop in a healthy, sustainable direction and serve real needs.

The government's initiatives, according to Batdongsan.com.vn, may take some time to formally enter the property market, but they have helped generate a favorable attitude and will contribute to a speedier recovery in the near future.

Mr. Nguyen Quoc Anh, speaking about the highlights of the real estate market in the first months of the year, stated that favorable developments from the government's policies are producing a more optimistic attitude for the market and assisting real estate demand to return to actual prices.

This also helps to shift the trend of real estate purchases toward homes that create cash flow and suit actual requirements. Despite the overall lack of liquidity, interest in the high-end category is increasing.

>> Ensuring the stable development of the real estate market

According to a survey by batdongsan.com.vn, apartment complexes providing both residential and long-term investment requirements are leading the way, with 27% of searches for purchase, a 4% rise from 2022. Street-facing homes and private houses are also gaining popularity as commercial properties, with corresponding search rates of 20% and 9%, representing a 1% rise over the same time.

Real estate purchases are shifted toward properties that create cash flow and suit actual requirements.

If land plots and project land accounted for 31% of overall search volume in 2022, it declined to 7% in Q1/2023 to account for just around 24% of the structure of real estate kinds, no longer the most worried sector.

In addition to for-sale properties, rental flats and private homes are drawing purchasers in Q1/2023. Batdongsan.com.vn, in particular, saw a significant increase in searches for the phrase "social housing" across the country. This trend demonstrates that low-cost items continue to be popular and are expected to play a significant role in recovering market liquidity in the near future.

Mr. Nguyen Quoc Anh believes that 2023 will be a year of numerous chances and difficulties for real estate enterprises, which will need to foresee and restructure debt, funding sources, and simplify their cooperation operating models.