Market research report of DKRA Group on the HCMC real estate market in July 2024 shows that the new supply of apartments has increased compared to the previous month. Most of the new supply belongs to the B and C segments, mainly located in the East of HCMC or in Dĩ An City, Bình Dương.
According to data from OneHousing Market Research Center, the luxury segment is leading the HCMC apartment market in the first half of 2024, accounting for 54% of new supply in the first half of 2024, with new projects mainly located in the East.
Notably, the average price of primary sales in the entire HCMC market in the second quarter of 2024 reached a record 76.7 million VND/m2, up 6% from the same period last year.
Although prices are high, the sales volume in the second quarter of 2024 still increased by 7.3% compared to the same period in 2023, reaching around 1,600 units, higher than the new supply (around 1,200 units), of which the high-end and luxury segments accounted for around 80%.
From the beginning of the year to now, the strong increase in apartment prices, or the vibrant activity of some segments, areas, has created expectations for investors about a strong recovery cycle of the real estate market in the context of low interest rates for loans, and the implementation of laws related to the real estate market will help to perfect the legal environment.
A piece of information that is currently being paid attention to and evaluated as having a significant impact on the recovery of the real estate market is that credit in this segment is also gradually increasing.
Data from the State Bank of Vietnam shows that, in just June 2024 alone, the total credit capital flowing into the economy is estimated to be over 480,000 billion VND, higher than the number for the first 5 months of the year.
Of which, real estate credit increased by 4.6% with a proportion of around 40% being business real estate credit (increased by 10.29%) and around 60% being consumer real estate credit (increased by 1.15%).
Real estate credit is increasing again, closely linked to the period when the market is witnessing the re-launch of many old projects, as well as the launch of new projects, and the psychology of investors is also more enthusiastic after the National Assembly approved the proposal of the Government to allow 3 new laws, including the 2024 Land Law, the 2023 Housing Law, and the 2023 Real Estate Business Law, to take effect from August 1, 2024.
Dr. Nguyễn Duy Phương, Director of DG Capital Investment, assessed that the real estate industry is having a strong takeoff to return to the market after a long period of difficulty.
Most recent reports on the industry analysis from securities companies and market research units have stated that the business results of real estate companies will improve strongly in the second half of 2024 due to the recovery of sales revenue from the end of last year, and many real estate companies have set high growth targets for this year.
"Real estate is an industry that absorbs a very large amount of credit, accounting for around 20-30% of the total outstanding debt of the economy. Therefore, when the laws regulating the real estate market are implemented, they will have a positive impact, and the credit capital flowing into important fields such as real estate, construction, industry, and commerce will increase, leading to an increase in demand for credit. Because if we want to push capital out to the economy as quickly as possible, these industries need the highest priority in credit," Dr. Phương said.
