Property market sees many driving forces for growth

Since savings interest rates are still low and gold investment is no longer attractive due to a fall in prices, the stock market and the real estate market could be destinations for investors, Luc said.

The stock market is recovering thanks to investors anticipating market upgrades, while the real estate market gradually recovers.

In particular, Luc said, from the second quarter of this year, the real estate market has regained growth momentum due in part to amendments to real estate market laws that will effect from August 1. 

The Land Law, Housing Law, Real Estate Business Law and Credit Institutions Law coming into effect will promote the recovery of the real estate market as corporate bonds and financial or banking activities become healthier and more sustainable, Luc said.

Three of these laws, namely the Land Law, the Housing Law and the Real Estate Business Law, have been amended to promote healthier, more transparent and sustainable development in Việt Nam's land, construction and real estate markets. 

Le Hoang Chau, chairman of the HCM City Real Estate Association (HoREA), said the three laws will help businesses on the property markets remove legal problems for projects, creating motivation for the market to grow again from the end of 2024.

Luc also pointed out other future growth drivers of the real estate market, including higher overall economic growth this year (currently at 6-6.5%, up from 5.05% in 2023). Interest rates have also dropped quite sharply for both old and new debts, creating suitable loans for buyers and investors.

Investor and market confidence is gradually being restored, shown by a slow increase in real estate supply, real estate transactions and corporate bond issuance.

Batdongsan.com.vn's Consumer Sentiment Study (CSS) shows that in the first half of 2024, 65% of 1,000 survey participants would continue to buy real estate in 2024. One third of that 65% are interested in land.

Land appears to still be a favourite property segment for investors, because this segment is easy to invest in and has high profit potential.

So far this year, investors have been flocking to buy land in the South Central region in areas like Da Nang and Hoi An (Quang Nam), particularly land near industrial and resort urban areas, which have the potential to be exploited for rent or business.

This is in addition to the ever-popular demand for real estate in localities near Hanoi, such as Hung Yen, Bac Ninh, Bac Giang, Hai Phong, and Quang Ninh. 

Meanwhile, some real estate companies are also promoting the sale of apartments from now until the end of the year due to the prospect of market recovery.

In the third quarter, Phat Dat Real Estate Development Joint Stock Company will market units at its Thuan An 1 high-rise residential complex project, according to Bui Quang Anh Vu, General Director of Phat Dat.

The company is only focused on developing projects that meet the real needs of customers in order to achieve the highest level of market absorption. The Thuan An 1 high-rise housing complex project will be one of the key large-scale projects in Binh Duong province to meet the increasing demand for local housing, Vu said.  

Meanwhile, Phu Dong Group, in the third quarter, will continue to offer 780 apartments at an average selling price of VND31.5 million per sq.m in the second phase of the Phu Dong SkyOne project in Di An city.

Khai Hoan Land Group will offer 1,296 apartments in the Khai Hoan Prime Project in Nha Be district, HCM City on the market next quarter.

In the third quarter, Tran Anh Group, Gamuda Land and PiGroup will also continue to sell properties in existing projects.