In the third quarter 2024 report, the Vietnam Association of Realtors (VARS) said that the Vietnamese real estate market in the third quarter in particular and the first 9 months of 2024 showed a positive recovery after a difficult period, thanks to the stability of the economy and the Government's support policies.
Real estate segments, from housing, commercial to industrial real estate, all show signs of positive growth with many new projects being implemented.
Mr. Le Dinh Chung - member of the VARS Market Research Working Group, General Director of SGO Homes - said that the Vietnamese real estate market is gradually recovering after a difficult period, but each segment still faces its own challenges.
Accordingly, the "heat" of the market is led by the apartment segment, with prices continuously setting new high levels, in both the primary and secondary markets. The market has also shown signs of "heating up". This situation is reflected in land speculation, pushing up housing prices and creating non-transparent real estate transactions.
The industrial real estate segment continues to maintain its "heat" with the number of newly implemented projects growing strongly, along with increasingly "abundant" FDI capital.
The occupancy rate of industrial parks (IPs) that have come into operation has maintained a stable increase, reaching about 75%. Of which, the key provinces in the North reached 82% and the key provinces in the South reached 92%. However, the occupancy rate of established IPs is still difficult to increase because supply and demand are "waiting" for each other: IP investors "close" new customers to invest in infrastructure, while investors only decide to invest in projects that already have infrastructure.
The challenge of this segment also comes from the requirement to "green" industrial parks, meet the increasing demands of investors and the country's sustainable development orientation.
The commercial real estate segment of offices and retail continues to grow with great long-term potential from the growing demand in both scale and quality.
New shopping malls, integrating many activities, also continue to be "popular". Meanwhile, old office buildings, old shopping malls that are not actively renovated or upgraded, along with small townhouses on prime streets, record increasingly high vacancy rates.
Based on the results recorded in the third quarter, Ms. Pham Thi Mien - Deputy Head of Market Research and Investment Consulting and Promotion of VARS - forecasts that if factors such as legal policies, finance and public investment continue to improve, the market will likely continue to "heat up" in the final period of the year when the new legal corridor officially comes into effect, when investors continue to promote project implementation...
In particular, housing supply will continue to be promoted, creating a driving force for the market, through M&A activities in the direction of "contributing rice to cook rice together".
"It is forecasted that by the end of the year, segments will continue to record recovery such as luxury apartments continuing to lead the market, villas and townhouses becoming more vibrant, clean legal land attracting investors and social housing (NOXH) will have more opportunities thanks to new regulations. Industrial real estate will grow, resort real estate will have the opportunity to improve thanks to condotels being granted certificates," Ms. Mien shared.
