Vietnam’s real estate market showed clear signs of recovery in the first quarter of 2024.

Vietnam’s real estate market showed clear signs of recovery in the first quarter of 2024. According to a report by the Vietnam Real Estate Association (VARS), the first quarter can be regarded as a springboard before the market stabilizes, and the market is expected to gradually and significantly recover in the next few quarters. There have been many positive outcomes for the market during these three months, especially after the previous downturn.

Market data shows that 1,035 companies have resumed operations, an increase of 25.8% from the same period in 2023.

In addition, according to VARS data, supply in the first quarter of 2024 reached 20,541 products, including 4,300 new products. In particular, many large-scale real estate projects have begun construction, covering hundreds of thousands of hectares, with a total investment of billions of dollars; real estate companies have begun to plan large-scale promotion and sales activities, new and old products are updated and construction starts are frequent, and the scale is increasing Large, the scope of influence continues to expand.

In terms of transactions, the market recorded approximately 6,200 transactions, an increase of 8% compared to the fourth quarter of 2023 and double the number in the same period last year. The absorption rate continued to improve, reaching nearly 31%, an increase of 5% from the previous quarter and an increase of 19% from the same period last year. Especially in Hanoi, apartments priced below 500,000 VND/square meter are very active.

In terms of sales prices, the current primary market prices maintain a stable trend, with a month-on-month increase of approximately 2 to 3%. Among them, the newly launched low-rise building projects are reasonably priced, while the apartment market prices are showing a growth trend of 10 to 20%.

In addition, the land and low-rise markets continue to be active, with many customers looking for purchasing information. Among them, products that serve actual needs are priced at approximately VND300 million to VND500 million in urban centers and approximately VND200 million in suburban areas, making them the most sought after in the market. Sales prices are expected to increase by 5 to 10% compared to the fourth quarter of 2023. Multiple distribution units pointed out that the first quarter of 2024 was the period when people "started" the most in the past three to five years.

On the other hand, the mentality of investors and companies is gradually showing positive changes. According to reports, in the first quarter of 2024, 1,035 companies resumed operations, an increase of 25.8% over the same period last year, and an increase of 2.3 times over the fourth quarter of 2023; 921 new companies were added, which was the same as the same period last year. At the same time, only 331 companies have completed the dissolution procedures, a decrease of 2.9% from the first quarter of 2023.

In particular, 20 to 30% of real estate brokers who had withdrawn from the market decided to return to the market, and about 30 to 40% of brokers said they would re-enter the market in the second quarter of 2024, because the signs of market recovery will be more obvious. After carefully observing market trends and changes for a long time, investors have gradually shown their willingness to pay attention to the market again.

According to the assessment of Phạm Thị Miền, deputy director of the VARS Market Research and Investment Promotion Consultancy Department, about 70% of clients and investors are ready to invest in real estate in 2024 if they find the right product. Land plots and low-rise buildings are the two areas that receive the most attention. With the positive changes in the market in the first quarter, good conditions will be created for a strong recovery in the coming quarters.

Looking ahead, VARS Chairman Nguyễn Văn Đính pointed out that the first quarter of 2024 is a critical period as the government and various departments are accelerating the formulation and implementation of new regulations, especially detailed guidance on the housing law, land law and real estate business law Regulation.

Đính emphasized: “The real estate market has gathered enough conditions to serve as a catapult for recovery. This includes support from the top, the foundation of the three laws that have the greatest impact on the market, the determination of entities, and the growing confidence of customers and investors. "

After a severe crisis, companies that survive will have better “antibodies.” The number of entities ready to re-enter the market continues to increase, and more projects will be launched on the market.

VARS representatives also predicted that the recovery process of the real estate market will continue to improve, and all changes will be based on previous recovery and accumulation, and will be supported by economic growth and urbanization development.

For more information about real estate projects in Ho Chi Minh City and neighboring provinces, please contact FTT LAND!

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