WHY SHOULD INVEST IN REAL ESTATE AT THIS STAGE?

1. The current real estate market and future prediction

Forecasting for 4th quarter 2023, the real estate market has yet to witness significant breakthroughs in growth. However, there seems to be a noticeable improvement compared to the same period previously. Based on positive information and favorable developments since the end of 3rd quarter 2023, there’s a basis for expecting the real estate market to gradually warm up from late 4th quarter 2023 and show stronger signs of recovery in 2024.

Some positive developments noted after 1st quarter include a significant decline in real estate supply, nearly halted, with just over 1,000 transactions conducted. However, by 2nd quarter, there was a strong resurgence with over 200 properties listed for sale and approximately 3,700 successful transactions. 3rd quarter continued to witness enhancement with over 5,000 successful transactions and 300 newly launched projects. This indicates the recovery and investor confidence, as real estate transactions are bouncing back strongly.

However, according to financial expert PhD. Can Van Luc, the current market has only recovered about 20-30% compared to its peak period. Issues related to legalities and regulatory frameworks are gradually being addressed and enforced. For instance, monetary policy is shifting from being “strict and stringent” to “flexible and accommodative.”

Recently, the State Bank of Vietnam has reduced its operational interest rates four times, leading to a gradual decline in market interest rates. Simultaneously, various policies supporting enterprises and individuals, such as debt restructuring and repayment facilitation, are being implemented. These financial support measures for the real estate market were previously unprecedented.

2. Is it wise to invest in real estate at this time?

Recent figures from the Ministry of Construction show that in the first six months of 2023, the real estate market continued to undergo a sluggish phase. Although some commercial banks have reduced lending interest rates, vibrancy in the real estate market is yet to be restored. Persistent issues regarding scarce supply across all product types, combined with an inappropriate goods structure, especially concerning social housing and affordable commercial housing, have led to subdued transactions. Businesses are facing difficulties accessing capital, resulting in the suspension of real estate projects and workforce reductions.

Nevertheless, this is an ideal time to explore and gather information about prospective real estate projects. Real estate remains a stable and long-term investment channel, particularly with high demand for housing and land, especially in economically robust regions.

Usually, the mid to late year period is when the real estate market thrives, as families aspire to move to new living spaces, hoping for a prosperous new year. Consequently, this period sees numerous real estate projects introduced to the market, triggering active transactions. This phase is considered the peak season for real estate, offering significant potential for land investment.

Currently, the market shows potential for growth at the end of 2023 and the beginning of 2024. Given the present situation, many developers are selling land with special incentives and attractive after-sales services. This provides investors with opportunities to acquire property at reasonable and favorable prices.

Additionally, bank interest rates have started declining, and investors are offering promotional packages, support, and swift legal procedure resolutions. This has heightened the interest of individuals planning to invest in real estate.

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