VTV.vn - In 2024, the real estate market is expected to see more positive developments, especially in the seco...
VTV.vn - In 2024, the real estate market is expected to see more positive developments, especially in the second half of the year.
Despite facing many challenges, statistics on the growth of the real estate industry indicate that the sector seems to have reached and passed the "bottom," especially in Ho Chi Minh City.
According to the latest statistics from the Ho Chi Minh City Department of Construction, the real estate industry in 2023, although the only sector with negative growth, showed improvement in growth rates each quarter. Specifically, in the first quarter, the growth rate was negative at 16.2%, by the end of the second quarter, it decreased to negative 11.5%, by the end of the third quarter, it was negative 8.7%, and for the entire year 2023, it recorded a negative growth rate of 6.38% compared to the same period the previous year.
Observing these developments, experts believe that with the decreasing rate of negative growth, the real estate market in Ho Chi Minh City established its "bottom" in the first quarter of 2023 and is showing signs of recovery this year in 2024.
According to the Real Estate Association of the city, the real estate market is still very challenging, but it is forecasted to recover by mid-2024. The involvement of relevant authorities and strong restructuring processes of enterprises are the main reasons that have helped the real estate sector pass through the most difficult period.
Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, stated: "The real estate market is in the process of irreversible recovery. Although the recovery rate may be slow, we believe that slow and steady wins the race."
In 2024, the momentum for market recovery comes from actual demand.
Currently, mortgage interest rates have decreased significantly, providing incentives for people to return to buying affordable apartments, thereby improving market liquidity in the near future.
"Never before have we seen mortgage interest rates at record lows of 6%, 6.5%... so in 2024, it is the time for homebuyers to observe and choose the appropriate time to disburse their capital," said Ms. Khanh Nguyen, Deputy General Director of Gamuda Land Vietnam.
However, challenges in the real estate market still exist, such as legal project approval procedures and investment and construction procedures, which remain cumbersome. Especially, these difficulties are currently localized in many localities.
Mr. Tran Minh Hai, Director of Basico Law Firm, assessed: "Issues are gradually being resolved, for example, in Ho Chi Minh City, but there are also regions where the deadlock has just begun. These factors will greatly impact opportunities in the real estate market, and the early or late recovery will depend on these factors. Because we see many favorable conditions supporting the development of the real estate market and its return."
Via VTV
In January this year, real estate business activities led with total FDI investment reaching over USD 1.27 billion, accounting for more than half of the total registered investment capital and doubling compared to the same period. Although it cannot be confirmed that the market will accelerate in 2024, it will be a pivotal year for the new development cycle of the Vietnamese real estate market.