Market liquidity in the suburbs gradually recovers

In the past month, positive signs have appeared in the suburban markets of Ho Chi Minh City such as Binh Duong, Long An, Dong Nai, Ba Ria - Vung Tau. Many investors have been more interested in land and townhouses in this area. From there, brokers have taken customers to see land more often, especially in areas near residential areas and industrial parks with high profit potential in the future.

According to data from Batdongsan.com.vn, in August 2023, the number of listings and interest in real estate in Ho Chi Minh City and neighboring markets both showed positive growth.

Specifically, the number of real estate listings for sale in Ho Chi Minh City increased by 3%, and demand for buying increased by 4% compared to the previous month. Other suburban real estate markets also recorded an increase of 2-5% in listings for sale, and demand for buying also increased by 3-5% compared to the previous month.

Land and townhouses are the types of real estate that have recorded positive changes. Accordingly, the demand for buying real estate such as villas and townhouses in Ho Chi Minh City increased by 7%, while land also increased by 4% compared to the previous month.

In Ba Ria - Vung Tau, the number of searches for this type of property also increased by 1-2% compared to the previous July. This is a rare growth for the coastal city after a long period of declining liquidity.

In Long An, land and apartments are more attractive to investors as demand for these two types of properties increased by 2% and 16% respectively. In Dong Nai, the land segment also saw a sharp increase in searches of more than 6% in August.

Similarly, in the Binh Duong market, real estate searches increased by 2-4% for land plots and apartments. Particularly for villas, Binh Duong recorded strong growth, up to nearly 19% compared to the previous month.

Many experts believe that due to signs that the market will have a strong recovery in mid-2024, now is the right time to look for investment products in the market.

As two traditional types favored by many investors for each growth cycle, land and townhouses located far from the center have higher profit potential than other types when anticipating the development of infrastructure.

The suburban market will be hotter in the last months of the year.

In the second quarter and the first half of the third quarter of 2023, the suburban market witnessed an increase in supply and many transactions in the types of apartments, land plots and villas.

This recovery is partly due to market confidence, sharp declines in bank interest rates, and especially thanks to investor support policies for buyers. In addition, projects currently on sale have completed legal procedures. Some projects that had problems have also been gradually resolved to start implementation again.

Especially with the apartment type, the products introduced to the market in the suburban areas are all clear, transparent in legality and have prices suitable for real buying needs, thereby solving the "thirst" for housing in the current market. Therefore, many expectations are placed on this type, which will solve the liquidity problem at the end of the year and lead the suburban market into a recovery phase.

In addition, the advantage from the market in general also comes from traffic infrastructure projects such as: Ho Chi Minh City Ring Road 3, Bien Hoa - Vung Tau Expressway, Ben Luc - Long Thanh...

At the same time, the suburban districts of Ho Chi Minh City are on the way to develop into a city within a city model. From there, the heat of the market in the next phase is expected to focus on the suburban areas when 2023 ends.

Forecasting this development earlier, Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, said that the land and townhouse segment in provincial markets may gradually warm up from the end of 2023 onwards, with transactions returning to a stable price trend or a slight increase compared to the present in some projects with good infrastructure and legal status, as well as locations near industrial parks.

However, transactions here will return to a low price level. That is, sellers must accept deep discounts for investors and customers with real demand to pay. In the fourth quarter of 2023, the market will record clearer signs of recovery when important laws related to real estate are passed, bank interest rates continue to decrease, and investor confidence improves. However, it may not be until early 2024 that the real estate market can truly escape the difficulties that are surrounding it.