Apartment Buildings Boost Real Estate Market
Apartment Buildings Boost Real Estate Market
While many segments are struggling with liquidity, apartment buildings remain a bright spot, driving the real estate market upwards.
The third-quarter 2023 real estate market report from Batdongsan.com.vn continues to note positive developments in this segment. While other types such as single-family homes, street-front houses, villas, land plots, project land, and villas have all experienced a decline in interest ranging from 4% to 11%, apartment buildings continue to grow by 1%.
In the rental market, while interest in other types has decreased by 13% to 28%, apartments have seen a 6% growth.
The apartment market is showing many positive signs. Photo: QH
The third-quarter 2023 real estate market report from Savills Vietnam also shows a vibrant apartment market. The number of new units increased by 572% quarterly and 11% annually, totaling over 2,500 units. Notably, Thủ Đức City accounted for 74% of this segment's market share.
The rental yield of apartment buildings remains stable. Photo: QH
According to experts, the reason apartments are least affected, maintaining an upward trend in both buying and renting markets, is that this segment serves actual housing needs.
Many developers have implemented various sales policies, including initial interest and principal support, extended payment schedules, and commitment-to-lease programs.
The apartment building market, in fact, has not seen a significant increase in listing prices over the past quarter, but the price level has remained very high from last year to the present. Apartment prices are expected to continue to rise, and rental yields will remain stable.
Mr. Lê Bảo Long, Director of Strategy at Property Guru Vietnam, believes that in addition to the story of prices, including buying prices, rental prices, and profit potential, the legal aspect of apartment buildings is of particular concern to real estate seekers. Legal issues are currently one of the top concerns for buyers and are gradually being addressed.
The apartment building market is expected to recover the soonest compared to other types, with an estimated reversal in the first quarter of 2024 and at the latest in the second quarter of 2024.
Note: The translation is based on the content provided, and there might be variations based on the context or specific terminology used in the real estate industry.
