Real estate market gradually recovers month by month

In a recent market newsletter, the Vietnam Association of Realtors (VARS) said that most of the projects opened for sale in the first half of the second quarter recorded good interest and bookings, even though they were in the mid-range and above segments.

VARS data shows that the absorption rate of new supply in the whole market reached nearly 31% in the first quarter with about 6,200 successful transactions. This figure increased by 8% compared to the previous quarter and doubled the same period last year. This trend continued to spread into the beginning of the second quarter. Some markets that VARS assessed as bright spots in recent times include Hai Phong, Hanoi, Hung Yen, Ha Nam, Da Nang, Binh Duong...

VARS sees this as a sign that investment demand is returning, instead of focusing on the real estate segment. Investors have also begun to activate the implementation of new projects or "renew old products" by groundbreaking and kick-off activities. The common point of these projects is that they are invested in quality, have complete legal procedures, and have diverse incentive policies.

"The real estate market is recovering positively month by month along with economic developments," said Mr. Nguyen Van Dinh, Chairman of VARS.

In addition to new apartment projects, Mr. Dinh acknowledged that the level of interest in land, townhouses, and villas has also gradually recovered compared to the bottom in the middle of last year.

The above developments were also noted by some market research units. Dat Xanh Services Market Research Institute (FERI) said that the supply of primary housing showed signs of increasing again in the Central and Southern regions with a monthly increase of 5-14%. In particular, the market in Hanoi and neighboring provinces recorded a decrease of 21%. The consumption rate of new supply nationwide remained at 57-62%, a sharp increase compared to the same period.

According to FERI, some segments have started to increase slightly in price month by month, such as townhouses and villas in Hanoi and Ho Chi Minh City (increased by 3-5%) or apartments in Da Nang and the suburbs (4-6%). "In Hanoi alone, the local fever in the apartment segment has cooled down," the report said.

FERI sees that the psychology of investors, brokers and customers has also improved positively. Many investors have implemented plans to open new projects to catch up with the recovery, promoting cooperation and investment linkage activities. This unit reported that in May alone, there were nearly 10 cooperation signing activities between investors and partners such as floors, banks and contractors.

The gradual recovery in market demand has also prompted many brokers who had left the industry to return. Mr. Dinh said that many brokerage firms have recently started recruiting again. VARS data shows that in the first five months of this year, about 40% of brokers who had quit their jobs during the most difficult time of the market have rejoined the industry.

The Chairman of VARS predicts that 2024 will be the end of the difficult period in the real estate market. The segments will gradually develop stably following the economic recovery and urbanization speed. Facing the lesson of the massive brokers quitting their jobs in the previous period, Mr. Dinh recommends that trading floors need to build a training roadmap, develop expertise as well as offer attractive commission policies to have a high-quality brokerage team.