Real Estate Interest in Vietnam Increasing by Record Numbers

The real estate market began to become active again after several localities eased the Covid-19 social distancing measures. One of the reports of Batdongsan.com.vn showed that the number of listings for real estate in the whole market skyrocketed, up 135% compared to September. Many provinces and cities are showing strong recovery post-lockdown, especially Ho Chi Minh City.

Specifically, the volume of new supply and interest (demand) of real estate in October increased sharply compared to September, by 135% and 55% respectively. Three main markets in Hanoi, Ho Chi Minh City, and Da Nang have recovered 100%, 90% and 70% respectively compared to April and May earlier this year.

Notably, the supply and interest in affordable apartments in Ho Chi Minh City jumped by 545%, respectively.

In which, the segment of townhouses, private houses and apartments received great attention from the market with a sharp increase in searches, ranging from 74-128%. As for the number of posts, the private house segment increased by 534% and the apartment segment increased by 313%.

In Hanoi, the number of listings for real estate sales in October recorded an increase of 108% compared to September. In which, listings for sale of private houses, apartments, and land increased by 184%, 139% and 113%, respectively. The affordable apartment segment also recorded a 100% increase in the number of listings for sale compared to the previous month.

In addition, in some other provinces such as Binh Duong, Ba Ria – Vung Tau, Da Nang, Binh Duong, the number of real estate listings for sale also increased by 186%, 170% and 148% respectively compared to September.

Batdongsan.com experts explain, there are two reasons for this record growth. Firstly, October’s data is being compared with a rather low base level of September. Second, the market really had strong bounces after the provinces and cities eased the distance. Recently launched real estate projects have good absorption when opening for sale for the first time.

Why housing demand is of great concern is also assessed by analysts. In particular, the speed of urbanization and the high rate of immigration in big cities today lead to a high demand for housing, along with land plots and apartments are the two segments least affected by the epidemic.

After the pandemic, the real demand for housing will increase because people realize the influence of real estate as a place of refuge. If targeting real buying demand, the apartment segment, especially mid-range apartments, will attract a lot of attention and have a good recovery rate in the market.

However, the new supply in the apartment segment in the inner city will continue to be limited, mainly from projects that have been prepared in advance. Therefore, purchasing power will shift to the suburb. Besides apartments, townhouses in satellite towns will also be the segment that recovers quickly after the epidemic.