New supply is booming
According to a survey by Batdongsan.com, at the end of the year, real estate markets in provinces and cities are bustling to welcome new products officially opened for sale.
Thanh Hoa real estate market is welcoming land supply from Hai Tien Center subdivision of Lightland Hai Tien urban area invested by Lightland Investment Joint Stock Company. The project has a scale of nearly 9.8 hectares including 173 products with areas from 90 - 140m2.
The Da Lat (Lam Dong) real estate market also entered the market with a new project called Haus Da Lat. The project has a scale of 5 hectares, located next to Xuan Huong Lake and is invested by The One Destination. The project includes luxury apartments, a commercial center, and a 5-star hotel operated by an international brand.
Lao Cai market also welcomed a new project, Dragon Complex. The project has a scale of 5.5 hectares, including 301 commercial houses, including 253 townhouses and 48 garden houses. The area of the houses is from 117m2 with the construction structure of 3-storey villas and 4-storey townhouses.
In Thai Nguyen, following the Tan Duc Central Park 1 project that was previously opened for sale, the market welcomed a new project, Tan Duc Central Park 2 - Dai Phong. The project has a scale of about 4.8 hectares with a total investment of over 108 billion VND with land lots ranging in area from 88-150m2. The project is invested by a joint venture of Tan Duc Construction and Trading Company Limited - Tan Duc Infrastructure Construction Investment Joint Stock Company JSC.
Purchasing power is not yet active
Although the supply at the end of the year poured into the provincial real estate market is quite abundant, the purchasing power of the market is not too strong. According to broker Nguyen Van Thuyet, who has been involved in the provincial land market for nearly 10 years, the purchasing power at the present stage is only about 40% compared to the peak period of the province's land in 2019 and earlier.
However, liquidity at this stage is much better than in 2022 and 2023. Purchasing power has begun to return to local markets, but the return is not widespread but concentrated in some provincial markets that are developing strongly in industrial, commercial, and service real estate or have great potential for resort real estate. At the end of the year, the number of people looking for provincial real estate markets is showing a slight increase compared to the same period.
Regarding developments in local real estate markets, Ms. Pham Thi Mien - Deputy Director of the Vietnam Real Estate Market Research and Assessment Institute (VARS) said that in some markets with good economic development indicators, the increase in primary prices helped the secondary residential land price level continue to maintain a high offering price even though liquidity was generally flat after a period of "hot" growth.
In the provincial real estate markets, products priced under 3 billion VND have the best liquidity. Selling prices remain stable or increase slightly, about 5-10% compared to the bottom. In the near future, along with the market recovery, provincial real estate will have more positive changes.
