Real estate market on recovery path

There were 6,200 transactions involving new properties across all segments last quarter for an average absorption rate of nearly 31%, an 8 percentage point increase from the last quarter of 2023 and double the rate from a year ago, the association said in its latest market report.

In the current quarter most newly launched property projects have garnered much interest despite being medium- or high-priced, it said.

Hanoi, Hai Phong and Da Nang cities and Hung Yen and Binh Duong provinces have been the bright spots this year.

Investment has also been recovering, with many developers launching or breaking ground on new projects.

These projects have proper legal documents and offer promotions, the association said.

In the housing segment, interest in land plots, townhouses and villas is recovering from its lows last year, according to Nguyen Van Dinh, its president.

Concurring with this, real estate company Dat Xanh Services (DXS) said the absorption rate for new supply in the housing segment was 57-62% in the first five months of this year, much higher than in the same period last year.

Prices have also gone up. Townhouse and villa prices in HCMC and Hanoi rose by 3-5% between April and May, while apartment prices in Da Nang and its surrounding areas increased by 4-6%, according to DXS.

"The real estate market has been experiencing positive growth aligned with the economy’s development in the last few months," Dinh said.

DXS said the sentiment among developers, property brokers and buyers has improved.

Many businesses are implementing plans to launch new projects to capitalize on the rising demand.

Around 40% of brokers who quit their jobs when the market declined have now returned while many brokerages have started rehiring staff, according to VARS.

Dinh said starting this year the real estate market will gradually recover and grow along with the economy and urbanization.