Many real estate projects rush back on track

With positive signals from the real estate market, experts believe that this sector will gradually improve by the end of the year. This is also the reason for investors to "release products" to attract customers.

Even real estate projects that have been "dormant" for a long time due to legal problems are quickly being "unblocked" to get back on track.

From a macro perspective, economic growth, income growth, population growth and urbanization are key factors driving medium and long-term growth in the real estate market.

Besides, demand from home buyers and foreign investors will also create momentum to boost the market in the coming time.

Recently, the Hanoi Department of Construction has announced a list of future housing projects eligible for sale in the area, as of August 28. Thus, the housing supply in the capital will be supplemented with about 5,300 apartments in 9 projects.

At the same time, infrastructure projects as well as new urban areas being implemented in suburban areas of Hanoi such as Dong Anh, Dan Phuong, Hoai Duc, etc. will also help the housing market in these areas have positive developments.

Commenting on the market in general, Ms. Nguyen Hoai An - Director of CBRE Hanoi Branch said that since the beginning of 2024, the demand for buying and investing in housing products has been quite active nationwide. Newly launched projects have mostly received positive attention from the market.

However, the number of new projects opened for sale is still low compared to the 2016-2019 period.

In Hanoi, the new supply of apartments each year since 2020 has only been equal to 1/2 to 1/3 of the new supply each year recorded in this city during the 2018-2019 period.

While demand for housing and investment is increasing positively, the current supply is still limited. This is also one of the reasons why the selling price of the apartment segment in the Hanoi market has increased rapidly.

In both the primary and secondary markets, apartment prices recorded an increase of over 20% compared to the same period in 2023.

Therefore, apartments are always a segment with good liquidity due to high demand while supply has not improved much, especially apartments that meet real housing needs.

Apartment prices remain high and continue to rise sharply. At the same time, land plots have also become a segment that is “dominating the airwaves,” especially auctioned land in the suburban areas of Hanoi.

In general, the demand for buying and investing in real estate is strong in the Northern region, especially Hanoi. Most of the projects that are legally qualified for sale have been receiving positive attention from the market.

In the North, Sun Group recently announced the Sun Urban Ha Nam project with a scale of more than 400 hectares, becoming one of the largest urban areas in the suburbs of Hanoi ever, after the major projects Vinhomes Ocean Park II and Ecopark in Hung Yen.

At the same time, Vinhomes officially received the decision approving the investment policy for the project to build and operate the infrastructure of Vinhomes Vung Ang Industrial Park in Ky Anh town, Ha Tinh province with a land use scale of nearly 965 hectares and a total investment capital of more than 13,200 billion VND.

In addition, a series of other famous investors such as Flamingo, Ecopark, WTO... also announced plans to implement other projects of hundreds of hectares.

Similarly, in the South, Ho Chi Minh City, investor Gamuda Land has been accepting reservations for the low-rise project The Meadow in Binh Chanh district since early August.

The project has a scale of 5 hectares with 212 townhouses and villas, and is one of the rare low-rise housing projects opened for sale in this special urban area this year.

Or Quoc Cuong Gia Lai Company also reopened the reservation basket for 400 apartments of the Lavida Plus project in District 7, Ho Chi Minh City with a price of about 45 million VND/m2, expected to officially open for sale next September.

At the same time, Nam Long Group announced the opening of a new phase of the high-rise subdivision of Mizuki Park Urban Area in Binh Chanh.

However, Ms. Nguyen Hoai An said that in the Southern region, many projects still face legal problems, causing a part of the market to not really become vibrant again.

Ms. An hopes that in the coming time, more projects will have their legal problems resolved. With the new laws having enough time to permeate and have an impact, the real estate market will recover better, with more abundant supply in many different areas and localities.

Regarding this issue, Mr. Nguyen Van Dinh - Chairman of the Vietnam Association of Real Estate Brokers (VARS) commented that all three new laws (Land Law 2024, Housing Law 2023, Real Estate Business Law 2023) taking effect early from August 1 will gradually remove the legal "bottlenecks" that have been the cause of "bottlenecks" in completing many real estate projects in recent years.

Thanks to that, the market in the coming time can welcome new supply sources, contributing to solving the current supply-demand gap.

“When the laws come into effect, many projects will soon be cleared of obstacles to be implemented and completed. From there, the supply to the market will increase, contributing to reducing the current pressure on supply and demand. Housing prices will gradually decrease to a reasonable level, more suitable for people's income. When investors have easier access to land, the cost of project development will also have the opportunity to decrease thanks to the shortened legal completion process. Product prices have the opportunity to be adjusted,” Mr. Dinh analyzed.

Recently, along with many investors pushing to implement new projects to catch up with the new market cycle, many projects that have been “dormant” for a long time have “awakened” and restarted. However, the new offering price is much higher than before.

In fact, in Hanoi, there is the HaNoi Melody Residences (Linh Dam) project invested by Linh Dam Real Estate Investment Company Limited, which was opened for sale in 2022 and is expected to be completed in the fourth quarter of 2024. However, when construction reached the 5th floor, this project has been suspended since then. Recently, this project has been widely promoted again with a selling price of up to more than 70 million VND/m2.

Similarly, Quang Minh School Joint Stock Company - the investor of the QMS Top Tower project (located at the Vu Trong Khanh-To Huu intersection, Hanoi) also announced that it would resell the project at a price of up to 80 million VND/m2.

This project was granted a construction permit in 2018 and was expected to be completed in 2020. But after topping out in 2020, the project suddenly stopped construction.

CBRE Vietnam cited that among the new projects recently launched in Hanoi, up to 75% were opened for sale before 2024, with only very few products launched in the second quarter of this year.

Currently, people who want to buy houses have high expectations from the social housing segment and the removal of commercial projects that are stuck in legal issues when the laws have an impact on the market.

The supply shortage is predicted by experts to be overcome within the next 2 years.