Hai Duong real estate market is warming up

Signs of recovery

According to many real estate brokers in Hai Duong, in the first 9 months of this year, the real estate market in the province has shown signs of recovery. The driving forces for the real estate market come from the growth of the economy, low bank interest rates, and improved access to capital. In addition, legal problems have gradually been resolved when the Land Law, Housing Law, and Real Estate Business Law were passed and took effect. The approved provincial planning, the planning of localities that have been and are being completed... are important orientations that have a positive impact on the market.

Real estate market data according to the Hai Duong Department of Construction also recorded a certain recovery from this industry. According to the Department of Construction's report for the third quarter of 2024, land transactions still dominated with 1,125 lots, while apartments had 62 units and individual houses had only 15 units. Compared to the first and second quarters, land transactions in the third quarter grew strongly (800 lots in the first quarter, 250 lots in the second quarter). In the first 9 months of this year, land transactions were 2,175 lots, apartments 187 units and individual houses 125 units.

“The real estate market in the past 9 months has been on the rise, with prices reaching peaks like 2 years ago. In addition to the above-mentioned supports, the cause is still due to scarce supply, the situation of investors pushing up prices for newly built individual houses, and also due to the high prices of construction materials and labor costs,” said Mr. Nguyen Duc Quan, Vice President of the Hai Duong Real Estate Association.

Plots of land in new urban and residential areas with good infrastructure are still popular, with prices increasing by 20-30% compared to last year. Meanwhile, single-family houses in alleys with car access increased by 20-25% on average, and sometimes even by 50%. Although prices are quite high, there are still transactions because supply is limited and demand is still very high.

In Hai Duong City, land plots in new urban area projects in the South of Hai Duong City, Tan Phu Hung, Phu Quy (Golden Land)... are still very sought after by people.

For individual housing, houses in car-accessible alleys in Hai Duong City cost about 50 million VND/m2, land with an area of ​​about 40-45 m2 costs about 1.2-1.5 billion VND, with quite active transactions.

However, for the apartment type in Hai Duong city, prices are in a stagnant phase, in contrast to the rapid increase in the second quarter. The reason is that the apartment transaction price is at a high level, compared to that, people will tend to choose to buy land. Therefore, apartment transactions are mainly from people who have real housing needs or buy to rent. Low investment demand makes the increase in apartment prices low. At Hai Dang apartment complex (The Lighthouse Residences, EcoRivers Hai Duong urban area) in Hai Tan ward, the transaction price of completed apartments is at 1.6-2.5 billion VND/unit depending on area and location. At Bach Dang Lake View apartment complex in Nhi Chau ward, each apartment is traded at around 1.2-1.7 billion VND/unit. Each apartment in HUDIC apartment complex is traded at around 1.4-1.7 billion VND/unit.

Continue to remove barriers

“It is forecasted that from now until the end of the year, bank interest rates will remain low, while people’s actual demand will always be high, and investment channels such as stocks and gold are risky, while the real estate market will still be prioritized. In which, land is still the choice of many investors,” said Mr. Ta Quang Nam, a certified real estate broker.

However, according to Mr. Nam and many investors, more policy support is needed for this market to grow steadily. Although the three laws related to real estate were passed earlier than expected, it still takes time for the laws to come into effect, not to mention waiting for circulars and decrees guiding their implementation to remove legal difficulties, unblock supply, and contribute to cooling down housing prices. Many investors and real estate brokers also believe that the market may be gradually starting to grow but can also easily fall into a "frozen" state.

Not to mention that the Ministry of Construction is currently proposing to tax people who own many properties. Although the tax tool aims to develop a transparent market, this can become a barrier to the development of this field. “If we apply the tax calculation for second real estate in a rigid manner, it can lead to unpredictable consequences. It can cause the purchasing power of real estate to be affected in a downward direction due to the psychology of consideration and calculation of the people. This will cause the market that has just begun to recover to immediately stagnate, or even continue to fall into a difficult state. And when the real estate market is difficult, it will certainly affect a series of other industries and the economy in general," said Mr. Quan.

However, the Social Housing Development Project in Hai Duong province for the period 2023-2030 will be a good sign for the province's real estate market.

Hai Duong plans to implement 11 social housing projects in the 2024-2025 period. Specifically, in Hai Duong city, there are projects: at plots 1-C2 of the Thai Binh EcoRivers riverside ecological urban area project; in Phu Quy urban area phase 1; in Ngoc Chau residential area; in Trai Bau residential area (Le Thanh Nghi ward); Tan Phu Hung urban area expansion project; apartment building for workers in Dai An residential area; housing area for workers and low-income people in plots OCN1, OCN3 of Ai Quoc ward industrial service residential area. In Cam Giang district, there are projects of residential area, housing for workers and industrial services in Tan Truong; in Ghe commercial service area (Tan Truong); in the new residential area of ​​Cam Dien-Luong Dien commune. In Chi Linh city, there is a project in the new urban area in the east.

Except for the social housing project in the new residential area of ​​Cam Dien-Luong Dien commune that needs to locally adjust the planning of the land plot for project implementation, with the implementation of the remaining 10 projects mentioned above, the social housing supply of Hai Duong by 2025 is expected to be supplemented with 5,554 apartments.

Thus, promoting the development of affordable housing for the community so that people with average and good incomes can access real estate in a context where housing prices only increase, not decrease, is also a measure to stabilize the real estate market.