Resolutely remove obstacles, bring the market into a new cycle
The real estate market in the third quarter of 2024 has had a positive recovery after a difficult period, thanks to the stability of the economy and the Government's support policies.
According to the Chairman of the Vietnam Association of Realtors (VARS) - Dr. Nguyen Van Dinh, the "pressing the button to take effect" of the 2024 Land Law, 2023 Housing Law, and 2023 Real Estate Business Law from August 1, 2024, 5 months earlier than the previous regulation, is an official declaration for a new "era" of the Vietnamese real estate market.
In particular, this has contributed to perfecting the legal corridor for the real estate market and opening a new cycle for the market in a safer, healthier and more sustainable direction.
"A series of Circulars and Decrees have been issued in a rapid manner to help perfect the real estate legal corridor. This demonstrates the determination of the Government and relevant agencies in the goal of completely resolving existing problems and obstacles, allowing the real estate market to enter a new cycle.
The entire system, from agencies, professional social organizations, businesses, and real estate brokers, are "racing" with programs to disseminate and train new legal knowledge. In particular, there is the participation of a number of banks in their efforts to closely follow market movements in both practice and theory," said Mr. Dinh.
According to this expert, the market still needs time to absorb and assimilate the new legal corridor. However, the proactive participation of all entities is a welcome signal.
Housing prices continue to "anchor" at high levels
In the third quarter of 2024, the residential real estate market continued to record a supply of 22,412 products offered on the market, with about 14,750 newly launched products, down 25% compared to the previous quarter, but up 60% compared to the same period in 2023. Despite the statistical decrease in quantity, the supply in the third quarter of 2024 still showed growth with the appearance of a number of new projects.
According to Ms. Pham Thi Mien - Deputy Director of Institute VARs IRE, in the first 9 months of 2024, the market recorded 38,797 new products offered for sale. Supply still recorded strong differentiation. Accordingly, 70% of new supply came from the apartment segment.
Of these, products with prices above 50 million VND/m2 dominate. The market is almost completely devoid of affordable commercial apartments.
According to this expert, housing prices continue to be "anchored" at a high level, in both the primary and secondary markets, especially in the apartment segment. Because the imbalance between supply and demand is becoming increasingly serious because although supply has improved, it is still very difficult to meet demand.
In addition, most new supply continues to be completed to a high standard with investment costs, especially land-related costs, increasing.
In the third quarter of 2024, the primary price level in Hanoi continued to increase and showed no signs of stopping, while supply has been gradually improving. New projects, from low-rise to high-rise products, mainly in the high-end and luxury segments, still received strong attention from the market.
This has created a driving force for secondary apartment prices to remain high, although liquidity has gradually stabilized after a period of "hot" growth.
According to VARS, as of the third quarter of 2024, the average selling price of the project model cluster in Hanoi is approaching VND 60 million/m2, an increase of 64.0% compared to the second quarter of 2019. The average selling price of the project model cluster in Ho Chi Minh City increased from VND 49.2 million/m2 to VND 64.2 million/m2, reflecting an increase of 30.6% compared to the base period. In Da Nang, the Da Nang market price index showed an increase of 46.2% in the third quarter, higher than the increase in Ho Chi Minh City.
