Real estate market has positive performances in Q1: VARS

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

According to Trần Văn Bình, VARS vice chairman and general secretary, the Vietnamese economy has shown signs of vitality in the quarter, and is 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 interest in real estate, Bình said.

According to VARS's survey, up to 70 per cent 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, total property supply on the domestic housing market reached 20,541 products, including 4,300 new products — VNA/VNS Photo

In the first quarter of 2024, total property supply on the domestic housing market reached 20,541 products, 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.

Lê Đình 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 per cent compared to the fourth quarter of 2023. Notably, 100 per cent of the supply source came from social housing projects in many localities.

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

According to Phạm Thị Miên, 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 per cent compared to the previous quarter. New low-rise projects and land plots are priced quite reasonably.

Regarding the land segment, VARS has informed that many locations recorded a sudden increase in the number of land transactions, especially the split land plots. More investors hunt for land in areas on the outskirts of big cities, localities with strong infrastructure development and high urbanisation rates.

The price of successful transactions in this segment decreased by 20-30 per cent compared to the fever peak, but increased 5 per cent compared to the fourth quarter of 2023.

Miên also said that property businesses and brokers have seen positive changes. Specifically, the market recorded 1,035 businesses returning to operation, an increase of 25.8 per cent over the same period in 2023 and 2.3 times higher than the fourth quarter of 2023.

The market also had 921 newly established businesses, equal to 98 per cent over the same period. Meanwhile, 331 enterprises completed dissolution procedures, down 2.9 per cent compared to the first quarter of 2023.

Besides that, 30 - 40 per cent of total property brokers said they would come back the market in the second quarter of 2024 when signs of market recovery are clearer.

Nguyễn Văn Đính, Vice Chairman of the Việt Nam 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.