Housing

Real estate market will flourish in 2025

VN (according to VTC News) January 21, 2025 07:17

According to many experts, the real estate market has overcome the most difficult period, is on the path to recovery and is expected to flourish in 2025.

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According to many experts, the real estate market has overcome the most difficult period.

Escape the "bottom", flourish in 2025

Mr. Nguyen Quoc Anh, Deputy General Director of PropertyGuru Vietnam, commented that the real estate market has overcome the most difficult time and is on the path of "acceleration".Although it cannot return to its peak immediately, signals from the beginning of 2024 until now show that the real estate market has liquidity from new projects and secondary projects. The difficult period has passed.", he said.

According to him, from the second quarter of 2025, the real estate market will enter a period of prosperity. Interest in real estate has increased sharply, and improved confidence in the market will positively impact investors' decisions.

"Currently, the real estate market is in a new cycle, the current context is based on 3 factors: Credit, interest rates and policies. In which, new laws coming into effect soon will promote the market to recover soon.", Mr. Quoc Anh emphasized.

Sharing the same view, Mr. Vo Huynh Tan Kiet, Director of CBRE Vietnam's Housing Marketing Department, predicted that 2025 is considered the first year of a new development cycle. However, if the market is to return to the vibrant, "golden" period of 2018 - 2019, it will still take more time.

Meanwhile, economist Dr. Can Van Luc said that the real estate market has passed the difficult period and is in the recovery phase. The reason is that recently, the market has received many supporting factors such as economic growth, macroeconomic stability, institutions - law, planning, supply - demand...

In particular, the most important legal issue has been gradually resolved and institutional issues have been improved. Accordingly, many relevant laws have been passed and come into effect; many decrees and policies have been issued.

In addition, the most difficult financial period for real estate businesses is gradually passing when there are opportunities to access loans in many forms. These will be the main factors affecting the recovery of businesses.

Mr. Nguyen Quang Huy, Nguyen Trai University also affirmed that the real estate market has overcome the most difficult period, with recovery mainly in the mid-range and high-end segments. This comes from the support of preferential credit policies and gradually improved confidence.

However, the recovery is uneven and still faces challenges such as: Affordable housing and social housing are still in short supply, unable to meet the great demand from people due to legal barriers and low profits, making businesses reluctant to invest.

Mr. Huy predicts that 2025 will witness stronger growth, especially in industrial real estate, housing with real value under VND5 billion and integrated tourism real estate.This is the time when the market begins to enter a new growth cycle, but development will depend on maintaining supportive policies and improving supply in key segments.", Mr. Huy affirmed.

Specifically, Mr. Huy said that in 2025, the market will be supported by a strong increase in remittances. In addition, legal reform policies, the revised Land Law, and more transparent regulations will promote transactions and increase confidence.

However, the market still faces the pressure of restructuring the bond debt of real estate enterprises that has not been completely resolved. In particular, real estate prices are still high compared to the average income of the people, requiring long-term solutions to increase purchasing power.

How will real estate prices be in 2025?

According to Mr. Giang Anh Tuan, Director of Tuan Anh Real Estate, real estate prices in 2025 will hardly decrease due to many factors: the real housing demand of people is increasing, especially in two big cities such as Hanoi and Ho Chi Minh City. In addition, after a period of stagnation, investment demand is starting to recover, especially for selective real estate products such as townhouses/villas and land with good infrastructure and utilities.

Homebuyers will continue to favor projects from reputable investors with good records in handing over pink books and after-sales services, clear legal status, strategic locations and good connections to utilities and infrastructure development.

Meanwhile, housing supply in 2025 will improve, but not significantly compared to demand, so the supply-demand balance is still tilted towards high demand and low supply.

Regarding Hanoi apartment prices - one of the segments with the "hottest" increase in 2024 - Ms. Nguyen Hoai An, Director of CBRE Hanoi, said that the apartment market in Hanoi is gradually relieving the "thirst" for housing supply shortage. Prices will not decrease but will no longer increase "hotly" like in the recent period.

According to the expert, real estate prices can only decrease when: excess supply, slow demand growth affects market liquidity, affecting selling prices; secondly, there are major fluctuations in the macro, financial market, economic growth...

In Vietnam, although the economy is currently growing steadily, interest rates, inflation, and exchange rates are controlled at reasonable levels, the housing supply is still in a state of shortage and imbalance between segments... Therefore, in the short term, it is very difficult for real estate prices to decrease.

"In 2025, the supply of new apartments could reach over 30,000 units. Prices will not decrease but will not increase as rapidly as in the recent period, possibly only increasing by 5-8% compared to 2024," Ms. Hoai An emphasized.

VN (according to VTC News)
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