Looking back at the real estate market in 2024, it can be seen that the confidence of both investors and home buyers has become more optimistic about the real estate market.
This is thanks to the supportive policies, drastic and effective direction and management of the Government and Prime Minister, along with the active participation of the entire political system, all levels, sectors and localities.
The driving force for recovery and development of the real estate market continues to come from economic development along with the increase in urban population and the need for home ownership of young households, especially the housing segment that meets real needs.
However, the recovery of the real estate market still has many shortcomings, when there is strong differentiation between segments, regions, product types and suppliers.
Accordingly, in terms of product type, although there are more low-rise products for sale, apartments are still the leading type, accounting for up to 70% of the total new housing supply in 2024.
According to VARS, the supply of new apartments in 2024 will mainly be in the high-end and luxury segment (priced from VND50 million/m2 or more), accounting for 65%.
In 2024, the entire real estate market recorded nearly 10,000 apartment products priced from VND 80 million/m2 or more, an increase of more than 3 times compared to the same period in 2023.
VARS data shows that, despite high selling prices, new housing projects in 2024 are still well absorbed, reaching over 70%, because housing supply is still lacking compared to demand and the demand for high-end, luxury housing is also very large.
For the real estate market to develop stably and sustainably, VARS believes that the State needs to have support policies to promote new supply into the market, especially affordable commercial housing products and social housing.
In addition, competent authorities and localities review real estate projects facing difficulties and classify them according to the cause and the agency responsible for handling them; resolutely recover and handle backlogged projects.
At the same time, develop regulations on detailed and specific valuation procedures for each specific situation, so that localities and appraisal companies can easily implement them, shorten the time to determine land prices, and serve as a basis for calculating land use fees for ongoing real estate projects, helping unfinished projects "revive" and bring new supply to the market.
Sharing with reporters, real estate expert Nguyen The Diep - Member of the Vietnam Real Estate Association - said that in addition to the above solutions, competent authorities should consider and research plans to support site clearance for projects in the affordable segment to increase the supply of affordable housing.
At the same time, according to Mr. Diep, it is necessary to study a plan to allow businesses receiving real estate project transfers to be responsible for completing the previous financial obligations of the transferor, to promote project implementation and bring supply to the market.
Ms. Duong Thuy Dung - CEO of CBRE Vietnam - analyzed that in the current context, reducing housing prices and increasing affordable projects is a difficult problem, posing many big challenges for businesses and management agencies.
Currently, the market does not have any factors or conditions for housing prices to decrease in the short term, but there are many factors that cause prices to increase, such as new land price lists, land costs, labor, construction, transportation, etc.
"It is highly likely that 90% of the supply in the market in 2025 will still be in the high-end and luxury segment. If this trend continues, prices will continue to increase, with an average increase of 8-10% per year," Ms. Dung predicted.
