The real estate market still needs to be closely monitored and resolved in 2024.

With many drastic measures from the Government, the Prime Minister, the Ministry of Construction and localities, in the last 6 months of 2023, the real estate market has shown positive signs, more prosperous than in the first half of the year. However, the real estate market still needs to monitor developments and have strong measures to remove them in the coming time.

The above information was just given by Chief of Office of the Ministry of Construction Dau Minh Thanh at the "Conference to summarize the work in 2023 and deploy tasks in 2024 of the construction industry" held on December 22, in Hanoi.

Specifically, Mr. Thanh said that in the first half of 2023, the real estate market continued to fall into a state of sluggish transactions. In this situation, the Ministry of Construction has actively advised the Government and the Prime Minister to implement many specific solutions to remove difficulties and promote the safe, healthy and sustainable development of the real estate market.

In fact, in the last 6 months of 2023, the real estate market has shown more positive signs than in the first half of the year, in which the number of searches for transactions in the land and apartment segments has recovered well and the supply from new projects and transactions is increasingly appearing.

“However, the market still needs to closely monitor developments and needs to continue strong measures in the coming time,” Mr. Thanh emphasized.

Citing specific examples, Mr. Thanh said that the real estate supply as of the end of the third quarter of 2023 is still limited in all segments. Of which, commercial housing has completed 42 projects with about 15,966 units (about 46.15% compared to 2022); social housing has completed construction of 5 projects with a scale of 850 apartments; resort tourism and office-accommodation projects have completed 17 projects, only equal to 56.67% compared to 2022.

Regarding prices, according to the synthesis of reports and survey information from localities and market research organizations, apartment prices have continuously increased in recent times due to the scarcity of apartment supply in recent years. However, prices of low-rise housing and some other real estate segments tend to decrease sharply by 10-20%, depending on the location of each area.

Regarding real estate transactions, by the end of the third quarter, there were about 324,378 successful transactions (about 41.29% compared to 2022). The decrease in transaction volume was mainly concentrated in the land segment (only 35.79% compared to 2022); apartments and individual houses (only 63.07% compared to 2022).

Similarly, regarding real estate inventory, according to the reported data of 53/63 localities, the real estate inventory in the third quarter was about 18,808 units; in which the inventory proportion was mainly in the individual housing real estate segment with 6,554 units; land plots of projects with 7,190 plots; and apartments with 3,196 units.

Faced with the above reality, the representative of the Ministry of Construction emphasized that in 2024, the industry will focus on effectively implementing Resolution No. 33/NQ-CP on a number of solutions to remove obstacles and promote the safe, healthy and sustainable development of the real estate market; the National Housing Development Strategy for the 2021-2030 period, with a vision to 2040 and the Project "Investing in the construction of at least 1 million social housing apartments for low-income earners and industrial park workers (2021-2030 period)."

The Ministry of Construction will also actively coordinate with the State Bank of Vietnam to implement the credit program of about 120,000 billion VND and specific credit packages to promote the implementation of communal housing and worker housing projects in localities.

In addition, the Ministry of Construction also reviewed, urged, and guided the removal of difficulties and obstacles in the implementation of real estate projects for localities and enterprises in Hanoi, Ho Chi Minh City and a number of provinces and cities across the country.

Along with that, the Ministry of Construction will coordinate with the Bank for Social Policies to determine the needs and implement loans for individuals and households to buy, rent-purchase social housing, housing for workers; build new or renovate, repair houses according to social housing policies; monitor the implementation of renovation, construction of old apartment buildings in localities; organize the implementation of decisions on the level of support for new construction or renovation, repair of houses for people with revolutionary contributions, relatives of martyrs and the rate of allocation of support capital.

In addition, in 2024, the Ministry of Construction will complete and regularly maintain the information system and database on housing and the real estate market; closely follow the real estate market situation to promptly adjust and remove difficulties and inadequacies of mechanisms, policies and laws on the real estate market, so that the real estate market develops stably and healthily.