Real Estate Market Starts Strong in the New Year Thanks to Developer Dynamism

The real estate market in Vietnam is off to a strong start this year, driven by the overall efforts put forth by developers. Despite the rising prices of properties, there has been a significant increase in demand.

According to a report by NetCredit, the price of condominiums in Hanoi is expected to continue rising by 77% in 2024, which is equivalent to 45 years of average income for workers. The Ministry of Construction’s report also shows that apartment prices have been steadily increasing in the fourth quarter of 2023, particularly in the two largest cities of Vietnam, Hanoi and Ho Chi Minh City.

Despite the price increase, the demand for residential properties remains high. Data from batdongsan.com.vn reveals that in January 2024, the number of people searching for properties nationwide increased by 66% compared to the same period in 2023. Hanoi and Ho Chi Minh City still lead in terms of property searches, with a focus on condominiums accounting for 71% and 59% respectively.

Currently, there is a demand for housing from approximately 1.8 million people, with the majority concentrated in Hanoi and Ho Chi Minh City. However, the supply can only meet about 30% of this demand. This scarcity of supply has led to a significant increase in property prices. Nevertheless, given the high demand during this “golden” population period, the real estate market still possesses potential for significant growth in the future.

Leveraging Policies Proactively by Developers

The year 2024 is expected to be a time of prosperity for the real estate market, thanks to various factors such as decreasing interest rates, lenient regulations, and especially the unprecedented promotional campaigns by major developers.

In recent times, banks have continuously reduced their deposit interest rates to around 5% per year, and the interest rates for housing loans have also decreased accordingly. Additionally, for short-term loans, not only are there preferential interest rates as low as 5-10.5% per year, but the fixed interest rate period has been extended up to three years.

Alongside attractive interest rates, the legal framework for the real estate market is gradually becoming more flexible, providing peace of mind for customers and addressing barriers for new projects in 2024. The government has issued multiple directives requiring relevant departments and the State Bank of Vietnam to find solutions to facilitate the market. Lê Ngọc Tùng Vi, Deputy General Director of Business Marketing at SenGroup, commented, “Removing legal obstacles helps stimulate credit lending for real estate businesses and homebuyers, creating a safe and sustainable development environment for the market in 2024. Furthermore, new laws such as Amendments to the Land Law, and Amendments to the Housing Law are also expected to stabilize market sentiment and resolve barriers for businesses.”

Caption: Vinhomes’ policy “Buy a Luxurious Home – Financial Security” offers customers the opportunity to upgrade their living standards without financial burdens.

Developers have also taken the initiative to introduce favorable policies to create a positive growth cycle in the market. Since the end of 2023, developers have been implementing various strategies to stimulate demand, including diversifying their product offerings, developing flexible business models, and offering attractive installment plans. For example, Nam Long Company has introduced a payment plan where customers only need to pay 30% of the property price in five installments until they receive the property. Other major developers such as Hưng Thịnh and Vinhomes have also offered discounts and appealing payment policies.

In fact, Vinhomes has introduced an unprecedented program in the market called “Buy a Luxurious Home – Financial Security” for the Vinhomes Grand Park and Vinhomes Ocean Park 1,2 projects. With this program, customers only need to pay a 30% down payment and will be supported with a long-term installment plan of up to 15 years.

The standout feature of this policy is that for the first time, a developer applies a fixed interest rate for customers alongside a grace period for principal repayment in the early years. For the first two years, customers only need to pay an interest rate of 6-7% (depending on the type of property), with a grace period for principal repayment. After two years, the interest rate will follow the floating rate with a fixed cap of 8-9.5% (depending on the type of property). If the actual interest rate provided by the bank is lower, the customer will enjoy the lower rate. If the actual interest rate is higher, customers are still guaranteed to pay interest at a maximum rate of 8% per year for low-rise properties or 9.5% per year for high-rise properties.

Vinhomes’ bold policy resonates with customers, especially after the high-interest rates experienced in 2022. “When customers have a comprehensive view of their financial situation, combined with positive developments in the banking sector and the legal environment, we can hope for a more vibrant market in 2024. This move also puts pressure on other real estate businesses to find better customer support policies if they don’t want to fall behind in the race toward a new development cycle in the market,” evaluated Lê Ngọc Tùng Vi.

Thanks to this unique program, customers can easily plan their personal finances for up to 15 years, reducing economic pressure on individuals and families. The combination of this exceptional offer with other stimulus policies from developers has lifted the fog and propelled the real estate market to experience strong growth in 2024.

Business Today is proud to present this opportunity to own a luxurious home in Vinhomes without worrying about interest rate fluctuations with the most attractive policy in the real estate market at the beginning of 2024.

To own a Vinhomes property, customers only need to prepare a 30% down payment. You can choose between Vinhomes Ocean Park 2 townhouses or The Zen Park – Vinhomes Ocean Park 1 apartments in Hanoi, or The Beverly Vinhomes Grand Park apartments in Ho Chi Minh City. The Vinhomes “Up to 15 Years Installments” program eliminates any concerns about market fluctuations by offering a fixed interest rate as low as 6% – 9.5%, a repayment period of up to 15 years, and the opportunity to move in immediately and enjoy a comfortable life in the most prestigious urban areas in Vietnam.

For further information, please contact our hotline: 1900 2323 89.

Note: This article was originally written in Vietnamese and has been translated and adapted for Business Today.