The more the real estate market develops towards the end of the year, the clearer the signals of a trough are,...
The more the real estate market develops towards the end of the year, the clearer the signals of a trough are, both on the primary and secondary markets.
In Hanoi, after a long interruption, the end of 2023 began to have an offer of real estate projects. Nguyen Van Tuan (38), owner of a real estate brokerage office in Hanoi, said that recently there has been a record increase in the supply of high-end apartments in the districts of Thanh Xuan, Dong Da, Ha Dong; low rise buildings in Ha Dong district...
Hanoi real estate market appears as a primary offer, according to experts, it is a positive signal
According to Mr. Tuan, although the primary supply introduced into the real estate market is still dripping, but in these difficult times, it is a good signal, showing a “bottom crossing” signal. For a long time, almost the primary market froze transactions due to lack of products from new projects. Trading is mainly done on the secondary market (purchase and resale).
In the secondary market, investors tend to take advantage of low interest rates to look for potential products. Transactions are also more interesting than in the previous period, especially in the segment of project land, low-rise buildings, apartments, land
Nowadays, in some notary firms, it is not difficult to see buyers and sellers lining up to file real estate transactions. Some tax officers in Hanoi districts such as Dong Anh, Dan Phuong, Thanh Tri, Thuong Tin ... According to him, real estate transfer transactions in the last 3 weeks have been larger than in the middle of the year, especially in the land segment. Commercial products are mainly parcel land, land in potential locations near Ring Road 4, Ring Road 3.5 …
Low credit rates help boost real estate liquidity
“Instead of exploring the market while waiting for the bottom to catch up, many investors are taking advantage of the opportunity of “cheap money” to invest, using more leverage. This gives the market warmer signals,” Dinh said.
One of the reasons the secondary market is more active is the price of the product. In the hot phase, the price of villas and adjacent projects is being pushed upwards, recently, more and more apartments with an area of 120-200 m appear 2 in the price range of 8-10 billion VND, or even 7-8 billion VND per unit, including land and construction funds. This price was reduced by about 15% compared to the old price, and compared to the top, it was even «sold» by about 30%.
Slow but steady recovery
Nguyen Van Dinh added that VARS statistics show that many investors have begun to “hunt” land in areas around large cities and provinces that thrive in infrastructure, with more room for growth in the future.
The real estate market has signs of recovery at its lowest, but the strength of demand is not strong enough to create a peak
Although the market has shown signs of “crossing the floor”, according to experts, the recovery process continues to diverge across segments and regions due to different absorption capacity.
Professor Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, said that instead of a “hot” development, the gradual recovery of segments, accompanied by parallel signs of the capital market and interest rates, shows that it is a healthy and sustainable development.
Via Bao Thanh Nien