REAL ESTATE MARKET AT THE END OF 2024: POISED FOR A BREAKTHROUGH
The Vietnam Real Estate Brokers Association (VARS) has reported that the recent enactment of the 2024 Land Law, the 2023 Housing Law, and the 2023 Real Estate Business Law has had a catalyzing effect on the real estate market, fostering recovery and growth.
These legislative reforms are poised to introduce a new era of transparency, fairness, and efficiency in Vietnam’s real estate and housing sectors. By addressing longstanding challenges, these laws are expected to unlock a myriad of opportunities for both buyers and sellers. Consequently, real estate developers are incentivized to enhance the quality of their projects, thereby elevating the overall competitiveness of the market and empowering consumers to make more informed and secure investment decisions.
Moreover, the streamlined regulatory framework is anticipated to expedite project approvals and augment the supply of housing, particularly social housing. This is expected to alleviate the persistent housing shortage faced by low-income households.
Positive Signs of Recovery
Batdongsan.com.vn has reported a marked uptick in interest across various real estate segments, signaling a robust recovery in the Vietnamese market. Notably, demand for land is projected to surge by 49% year-on-year in the third quarter of 2024, while houses, apartments, and villas are anticipated to experience growth rates of 25%, 24%, and 22%, respectively. This positive sentiment is echoed by 72% of real estate agents surveyed, who perceive a more favorable market dynamic.
The recent amendments to the Land, Housing, and Real Estate Business laws have been well-received by market participants, fostering greater transparency and confidence. Consequently, the supply of social housing is poised to increase, bolstered by supportive government policies.
A review of newly launched projects in Hanoi and Ho Chi Minh City indicates premium pricing, with average prices ranging from 45 to 90 million VND/m² and 45 to 130 million VND/m², respectively. Despite the higher price points, absorption rates remain robust, with a majority of real estate agents reporting rates ranging from moderate (30% – 60%) to exceptionally high (>80%).
The Vietnam Real Estate Brokers Association (VARS) has indicated that the domestic real estate market is still in the nascent stages of its recovery. In the final quarter of 2024, leveraging the early implementation of the new legislative framework, the government and relevant authorities are poised to galvanize efforts to revitalize the market. Developers are expected to intensify marketing campaigns to drive sales. Consequently, the market is projected to exhibit tangible signs of recovery by year-end.
VARS experts anticipate a surge in market activity as stakeholders capitalize on the improving market sentiment. Developers are likely to expedite project execution, collaborating with government agencies to address regulatory hurdles. Moreover, investors are expected to demonstrate greater proactivity in launching new ventures, buoyed by renewed confidence and the availability of capital from maturing bank loans.