The prediction was made by Nguyễn Văn Đính, deputy chairman of the Vietnam Real Estate Brokerage Association, at the association’s press conference on reviewing real estate transactions in the domestic market in the third quarter of this year in Hanoi on October 11.
In the last quarter of this year, the domestic real estate market would receive many new products from real estate development projects from across the nation. Property prices would increase slightly, between 0.5-1%, when compared with the third quarter, Đính added further.
Đính also stated that in the fourth quarter, the market will continue to see diversification in the kinds of property products on offer. The demand for housing and investment will continue to grow due to the stability of the economy.
Meanwhile, foreign direct investment (FDI) will continue to flow to Vietnam as investors will tend to withdraw from the Chinese market due to concerns over the US-China trade war, stated the association.
Last quarter will also mark the moment when Vietnam will receive the largest amount of remittance for the year, when compared with other channels such as securities, gold and foreign currencies. The real estate sector is considered a potential channel to attract this investment.
The association also pointed out that two major markets of Hanoi and HCM City saw sustainable development in Q3 this year. Real estate projects received sizeable investment and offered many products on the local market. The two cities marketed over 20,000 new products with reasonable structure in their respective sectors.
Prices of properties in the two cities were stable compared to Q2, while about 13,000 products were traded successfully—bringing the absorption rate to 63.5%. A large number of buyers experienced real demand for property products, showing no sign of a real estate bubble.
In Hanoi, affordable condominiums accounted for 54% of total traded apartments while in HCM City, high-end products dominated the market with 40.5%, followed by mid-end with 36.5%.
Other localities nationwide also experienced development in the real estate market, according to the association. However, the third quarter saw reductions in supply and demand on the resort property market.
The association recommended therefore that it was time to suspend the development of new resort property projects. The existing ones should focus on completing constructions to begin operations, meeting initial targets of the projects and building confidence for investors.