Vietnamese Developers Are Accelerating Sales Growth in an Attempt to Offset a Housing Shortage Earlier This Year

Vietnamese Developers Are Accelerating Sales Growth in an Attempt to Offset a Housing Shortage Earlier This Year

Active construction is underway in several locations at once. Tran Anh Group is handing over the Phuc An Ashita residential complex in the southern province of Binh Duong and is pushing real estate sales at the Phuc An Asuka project in the city of Chau Doc in the Mekong Delta. Tran Viet Thanh, managing director at the Phuc An Asuka project, said the complex was almost complete in just one year after construction began. Tran Anh Group has handed over apartment certificates to the first residents of this community.

Real estate is selling just as fast in the Glory Heights quarter (Thu Duc city) in Vinhome Grand Park. Of the 3,200 residential units, 2,000 apartments were sold in just over 24 hours. According to Can Van Luc, a member of the National Monetary and Financial Policy Advisory Council, the market is starting to recover. This is confirmed by Q2 sales data, which showed a significant increase compared to Q1.

However, Pham Lam, CEO of the consulting company DKRA Group, believes that it is too early to talk about the end of the crisis. High mortgage rates have a negative impact on the real estate market. At the moment, most investors have taken a wait-and-see approach, which limits the flow of money into the construction sector. Although those who have available funds and do not need mortgage lending are not deterred by this state of affairs.

Analysts agree on one thing: to kick-start the market, it is necessary to improve the liquidity of real estate, which is only possible with an increase in construction volumes and a decrease in interest rates on loans.

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