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For the past two weeks, Ms. Kim Anh, a medical worker working in District 1, Ho Chi Minh City, has been eagerly looking to buy a house because she is worried that prices will increase after the Law on Land, Housing, and Real Estate Business takes effect.
Ms. Kim Anh said that she needed to buy a house to live in, so she asked her agency to transfer her to the morning shift, taking advantage of the afternoon to go on field trips with the broker. She was interested in private houses and residential land priced from 4-5 billion VND in the area of District 12, Go Vap. After looking at more than a dozen houses and 7-8 plots of land, she was satisfied with two houses but was still negotiating the price.
"If I don't buy now, I'm afraid that when the new laws come into effect, house prices will increase again," she shared.
Similarly, since the beginning of July, Mr. Pham Trung Tin, a construction engineer working in Binh Duong, has been going to see houses with brokers almost every weekend. He and his wife are targeting apartments in old apartment projects in Dong Hoa ward, Di An city, priced under 2 billion VND.
Mr. Tin said that the process of finding a house had been going on since February, but at that time he was still leisurely because he was not in a hurry. However, from the end of June, he accelerated the progress, determined to finalize the purchase of a house in July, or at the latest August, because he was worried that the opportunity for cheap prices would pass.
"I think house prices may not increase immediately after August 1 - when the three new laws come into effect, but they will likely increase over the next year. If you are planning to buy, now is a good time," he said.
Mr. Phuc, a veteran investor in Dong Nai, is also looking to buy land in districts on the outskirts of Ho Chi Minh City, aiming to take advantage of the opportunity of rising land prices after the new Real Estate Business Law tightened the subdivision regulations. Recently, he pooled money and invited more relatives to buy land to wait for the wave. He only chooses land with full papers, near residential areas.
The director of a real estate brokerage company in Thu Duc City (Ho Chi Minh City) said that since the end of May, many people have been eagerly looking for real estate to buy due to concerns that prices will fluctuate when three sets of land laws come into effect. Especially, transactions for buying private houses and residential land in the past month have been closed very quickly, without the situation of "haggling to see for the first time" like at the beginning of the year.
"Transactions are happening quickly, buyers are making more decisive decisions and sellers have not yet increased prices," he said.
The FOMO (fear of missing out) mentality of many home buyers is clearly reflected in the recent transaction volume in the market. According to statistics from the Ministry of Construction, in the first 6 months of the year, more than 253,000 real estate products were successfully sold, an increase of 10.26% over the same period last year.
The Vietnam Association of Realtors said that in the last quarter alone, the entire market had more than 14,400 successful transactions, an increase of 2.4 times compared to the first quarter. Transactions came from both investors and real residents, of which the group of customers buying for investment increased by about 30% compared to the previous quarter.
Reports from market research units also indicate that real estate purchasing power has recovered strongly in recent times. Data from Savills Vietnam shows that in the second quarter, Ho Chi Minh City recorded an apartment absorption rate that doubled quarter-on-quarter and increased by 606% year-on-year, contributing nearly 70% of total sales in the first 6 months of the year. Meanwhile, according to CBRE Vietnam, the number of apartments successfully offered for sale in Hanoi in the second quarter increased 5 times compared to the number of units sold in the previous quarter and the same period last year...
According to Dr. Pham Anh Khoi, Director of the Dat Xanh Services Institute for Economic, Financial and Real Estate Research, one of the developments that the real estate market is looking forward to is that three new laws will officially take effect from August 1. Experts predict that real estate prices will continue to increase after the regulations from the law are implemented. This encourages many people to rush to spend money because they are afraid of missing out on the opportunity to own a house at a good price.
"If at the beginning of the year, purchasing power mostly came from groups with real housing needs, recently investors have started to return to the market," said Mr. Khoi.
Mr. Le Dinh Chung, a member of the Market Research Working Group of the Vietnam Real Estate Brokers Association, assessed that the real estate market is starting to show signs of warming up, with better economic growth, so there is a stream of people rushing to buy real estate. Real estate prices are also increasing in both the primary and secondary markets. It is undeniable that the price increase comes from the real supply-demand balance, but there is also a situation of taking advantage of the crowd's psychology to inflate prices, causing local fever.
Mr. Chung recommends that home buyers should be alert and choose products that are suitable for their financial capacity and legal guarantee. Do not follow the "fever" of the movement and consider the financial problem before making a decision.
According to Mr. Le Quoc Kien, a veteran real estate investor in Ho Chi Minh City, not all types and segments of real estate will be greatly affected when the new laws are applied. Private houses and townhouses in existing residential areas have high stability, so the level of impact is not large. Types such as apartments, townhouses, agricultural land, and land plots will be affected, but in different stages.
He predicts that from August 1 to the end of 2024, the market will trade better and house prices will likely rise from the bottom. However, it will not be until the third quarter of 2025 that real estate prices can return to the level of late 2021 and from 2026, a new growth cycle will begin. Therefore, in the second half of this year, real estate prices will still be flat and there will be many opportunities for buyers at this time.
Batdongsan's sales director Dinh Minh Tuan also advised that if buying for residential purposes, buyers should put down their money after the three laws take effect and the market absorbs the new policies. Although prices will be adjusted compared to the current ones, the new law's regulations will protect the buyers' rights more comprehensively.
"Absolutely do not buy a house because of crowd psychology, fear of missing out on opportunities, but consider financial matters before making a decision," he said.
TB (according to VnExpress)