According to the Vietnam Association of Real Estate Brokers (VARs), the total amount of housing sold on the market in the third quarter of 2020 reached 73,933 units, comprising 46,773 apartments and 27,160 low-rise houses.
The transactions on the whole market reached 26,299/73,933 units, and the absorption rate was 35.5%. This figure was a sharp increase compared to 7,461 and 12,640 units in the first and second quarter of 2020, respectively.
The real estate market in the third quarter of 2020 also saw a significant recovery, shown by the increased absorption rate of new products. To be specific, the absorption rate of new products reached 43.4%, which was an increase of nearly 4 times over the first quarter and 1.4 times over the second quarter of 2020. The new supply offered in the third quarter of 2020 also increased by 1.21 and 1.23 times compared to the first and second quarter of 2020, respectively.
The general evaluation of the real estate market shows that there are no announcements of discounting prices. There are great promotion programs in some projects to stimulate demand instead of decreasing housing prices.
Also, according to VARs, although the real estate market has recovered significantly, real estate prices are still facing many pressures. To be specific, apartment prices in large cities have been raised to the ceiling level, especially in the high-end apartment segment, causing a low consumption rate.
Many projects with high leverage are pressured to recover capital for acquittance by using promotional programs with high-value gifts. Meanwhile, the price of land in localities that were previously quickly developed has now increased dramatically, even surpassing the real market value threshold. The price of most projects has to be adjusted to pull back the market demand. In addition, the scarcity of new housing in large cities will continue.
According to the VARs' forecast, the wave of investment and shopping at the end of the year is likely to have a positive impact on the domestic real estate market. The transaction and consumption rate will increase accordingly compared to the third quarter of 2020. However, there may not be fluctuation in the price.
Apartments are forecasted to be the housing trend in the future, as infrastructure is developing and the area of urban land cannot meet residents' demands. Along with that, the millennial generation is not bound by traditional notions and very open in choosing their housing. They like to live in small to medium-sized apartments that fully meet their needs and are filled with amenities.
In fact, in the past few years, more and more apartment projects have been built and developed to meet increasing demands from buyers. The level of interest in apartments has continuously increased over the years. To be specific, the search volume of apartments in the first quarter of 2019 increased by 27% compared to the first quarter of 2018. Especially, according to the market report of the third quarter of 2020 issued by Batdongsan.com.vn, apartments are the real estate with the highest interest volume with 29%, followed by residential lands (23%) and private houses (21%).
During the Covid-19 pandemic, the search volume of apartments still increased by 3%, while that of residential land remained the same and that of private houses slightly decreased.
The second Covid-19 pandemic outbreak in late July, early August pushed the market of the third quarter of 2020 into difficulties. However, the impact of this outbreak was slighter than the first outbreak at the beginning of the year. The volume of interest in the general real estate market decreased by 10% and 6% weekly during the first and second outbreak of the Covid-19 pandemic, respectively.
According to a survey of users of Batdongsan.com.vn, despite continuous challenges, real estate is the most chosen investment channel. 57% of the participants choose to invest in real estate even when the gold prices continuously increase.
The real estate market is gradually recovering after the second outbreak of Covid-19, clearly shown in two markets heavily affected by Covid-19 - Da Nang and Quang Nam. Transactions in the two provinces have started to be conducted again. To be specific, the number of posts for real estate sales in Dang and Quang Nam increased by 25% and 11%, respectively.