New major projects can spearhead future real estate
New major projects can spearhead future real estate
Despite plenty of work on reviving Vietnam’s real estate taking place last year, fruition may not be felt for quite a while yet.
Nguyen Van Dinh, chairman of the Vietnam Association of Real Estate Realtors (VARS), said that positive factors such as strong recovery, supportive policies, and new planning create a favourable environment for making investment decisions. However, this choice also means that investors need to carefully consider strategies and goals to avoid wrong moves.
“Last year, the government and ministries actively intervened to resume the real estate market after a two-year period of downturn,” Dinh said. “In particular, nearly 20 directives, regulations, and decrees were announced, contributing to increasing trust and strength for the market and related parties.”
“Over time, government policies increasingly reflect the actual needs of the market and businesses, and many problems have gradually been resolved. This creates conditions for most capable projects to resume. Therefore, the real estate market is experiencing more positive developments,” Dinh added.
For the first time in many years, project investors have shown their enthusiasm for sales through a series of attractive demand stimulation policies including discounts, promotions, extended interest rate support, early handover, and extended payment times.
More specifically, around half of provinces and cities have announced long-term planning, which will provide a robust landscape for real estate development with detailed zoning and creating more available land.
The fourth quarter of 2023 also saw many large-scale projects starting sales campaigns, diversifying supply and promoting transactions.
Latest arrivals include the Canopy Residences by Vinhomes and GIC, The Moonlight 1 An Lac from An Lac Group, Akari City of Nam Long Group, Glory Heights from Vinhomes, and The Global City by Masterise Homes.
Economic expert Dinh Trong Thinh commented that, with low bank interest rates, investors will look for investment channels such as stocks or real estate. The reduction in deposit interest rates along with new sales policies are stimulating transactions.
“In fact, from mid-2023, although product supply has not improved much, in return, with projects eligible for launch, investors have implemented more sales policies to support sales,” Thinh said.
A survey released in December by Batdongsan.com.vn showed that around half of respondents were satisfied with the current market situation, of which around half of those respondents assessed that the market was offering better finance support options.
“Preferential and flexible sales policies are effective strategies to stimulate consumption during difficult times as well as help reach a wider customer group,” commented Nguyen Quoc Anh, deputy director of Batdongsan.com.vn. “The turning point of the real estate market may appear in the second half of 2024, after which it will enter a new cycle and go through the stages of exploration, consolidation, improvement, and stability.”
Meanwhile, economic expert Can Van Luc said that in 2024, support will come from a stable macroeconomy, capital flow returning, the corporate bond market gradually opening up, planning and construction of infrastructure, and legal corridors gradually improving.
“More specifically, thanks to Vietnam’s integration into the global market, industrial park real estate and residential real estate are benefiting as foreign experts flock to Vietnam to work and live,” Luc said.
He added that the recovery of the real estate market will be clearer in a few months when support policies are well absorbed, financial matters are resolved, and new laws are put into operation.
