Real estate market on path to recovery
VGP – The real estate market in Ha Noi is gradually recovering after a period of social distancing and promises to soon regain growth momentum.
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According to statistics from the Ministry of Construction, real estate activities in Q2 2020 were more vibrant than in Q1 with optimistic and positive signals recorded. As many as 325 new projects with 70,317 apartments received construction licenses in Q2.
In addition, 1,425 projects with 246,781 apartments are currently underway, while 73 projects with 8,901 apartments have been completed.
Particularly, the number of housing projects licensed in Q2 increased sharply compared to the first quarter.
Positive change was reported in both Ha Noi and Ho Chi Minh City, with eight projects licensed in the capital (compared to zero project in Q1) and four in HCM City (zero in Q1).
Reports from localities showed that the number of successful property transactions in Q2 surged by 30-40% from the opening quarter, reaching 29,674, including 1,354 transactions in Ha Noi (up 16% against Q1) and 3,958 in HCM City (up 40.6%).
Industrial real estate generally still remained attractive to tenants. Industrial real estate rents increased by about 9% over the same period in 2019.
There were few new tourism and resort real estate for sale, with selling prices unchanged from 2019.
Regarding the retail ground, due to the direct impacts from the pandemic and business difficulties, many grounds were returned or the parties had negotiations to adjust down the rents by 30-50% compared to previously.
The Housing Management and Real Estate Market Department under the Ministry of Construction stated that the real estate market in Q2 2020 was gradually bouncing back.
Despite certain difficulties, there remain many opportunities for the real estate market to recover and develop, reflected through factors such as the great demand for housing property, business establishments, land in industrial parks and resort real estate.
To deal with the existing obstacles, the Government has been directing the research and issuance of new policies to support the real estate market. The newly issued legal normative documents will contribute to solving problems regarding the projects licensed from 2019 backwards./.
By Vien Nhu
