Domestic property market stable in Q1

The domestic property market showed stable development in the first quarter of this year. (Photo: danangz.vn)

So said experts at a press conference on the first-quarter performance of the property market held by the Vietnam Association of Realtors (VARS) in Hanoi on April 16.

According to VARS, the national real estate market continued its stable development. Potential real estate markets have appeared in some northern and central provinces such as Cao Bang, Bac Can, Hoa Binh, Binh Dinh, Phu Yen, Lam Dong and Binh Thuan.

The market saw investment flow to provinces and cities neighbouring Hanoi and HCM City such as Vinh Phuc, Bac Ninh, Bac Giang and Thai Nguyen in the north and Long An and Dong Nai in the south.

The VARS also said the real estate market in some localities experiencing stagnation recently may recover in the second quarter. Property supply will increase sharply compared to the first quarter.

The main supply continues to be apartment products, primarily affordable and mid-end units. The volume of transactions will also increase sharply compared to the first quarter because of high supply. Real estate prices may increase slightly in all segments.

Nguyen Van Dinh, the Vietnam Real Estate Association’s deputy general secretary, said some places has seen rumours and misinformation pushing up prices, creating local bubbles in Quang Nam, Da Nang and Quang Ninh’s Van Don, but local authorities have kept close control of investment activities and trading of real estate services to ensure sustainable development of the property market.

Van Don has attracted investment from many of the country’s large real estate developers such as CEO, Vin Group, FLC, Sun Group, BIM and HD Mon.

Phu Quoc in Kien Giang province is also considered an emerging market. Dang Duc Gioi, general director of the Special Zone Real Estate Development Joint Stock Company, said Phu Quoc is expected to show sustainable growth in coming years. Land prices are expected to increase by 3-5 percent and the market is likely to secure more long-term investments.

The nation has two other notable potential markets: Khanh Hoa and Da Nang. Experts said their strength is due to investment from the State budget and domestic and foreign real estate developers to create quality urban infrastructure.

The potential for investment in residential and resort developments in the two localities is still high despite a recent slowdown caused by policies that have led investors to transfer some of their work to neighbouring provinces.

Dinh said that in the first months of the year, demand for real estate increased in Hanoi and HCM City even as supply decreased.

Housing property prices have increased slightly. The two markets had a number of hot areas, but the situation was under control.