HCM CITY — A multi-dimensional assessment of a new growth cycle in the real estate market over the next 10 years is needed to promptly seize development opportunities, a panel discussion heard in HCM City on December 18.

The event, with the theme “The way to a new decade of growth”, was organised by the HCM City Union of Business Associations (HUBA) to raise and discuss issues relating to supply and demand, price and segmentation in the property market over the next decade.

Nguyễn Ngọc Hòa, chairman of HUBA, said many real estate businesses have been struggling or left the market altogether due to the impacts of various global and domestic challenges.

Though the market is always volatile and difficult to predict in the short term, the demand for housing is still very large, especially among young people who want to leave their parents’ houses after marriage, he said.

“How real estate businesses solve the supply problem will be the key factor in creating a breakthrough in the industry.”

Recently the Government and local authorities have rolled out policies to mitigate difficulties faced by the industry, he said.

“But the real estate business community must re-evaluate its strategies in alignment with market trends to seize emerging opportunities,” he said.

Many experts agree that it is increasingly difficult for young people to own a house before the age of 30. This challenge, driven by financial pressures, has led to a decline in the number of young people aspiring to purchase homes.

In 2012-13, mid-range apartments in the city were priced at VNĐ22-VNĐ25 million (US$860-$980) per square metre. Now they have risen to VNĐ50-VNĐ65 million ($1,960-$2,550).

Meanwhile, incomes have not kept pace with the sharp rise in property prices, and people also face the burden of high living costs in major cities.

Dương Thùy Dung, a senior director at CBRE Việt Nam, said there is little incentive for investors and real estate businesses to lower selling prices.

“Housing prices are rising steadily by 8-10 per cent annually across various segments. Predicting whether property prices will fall is very challenging.”

In many central areas, average apartment prices range are VNĐ150-VNĐ200 million ($5,880-$7,840) per square metre.

But in suburban areas they are still VNĐ40-VNĐ50 million (US$1,570-$1,960).

Phạm Đăng Hồ, head of the housing development and real estate market office at the city's Department of Construction, said while the market has shown signs of recovery this year, the pace has been slow.

Supply has improved compared to 2022 and 2023, he added.

The introduction of three new land laws and amendments to real estate business and housing laws, which took effect in August, highlight the Government’s commitment to addressing legal challenges faced by the property sector.

The city's regular collaboration with real estate businesses has also helped resolve obstacles faced by ongoing projects.

According to its latest report, difficulties have been resolved at 34 of 64 real estate projects.

The market is gradually recovering, shifting from negative growth in 2023 to positive growth during the initial months of 2024.

This year is seen as a turning point for Việt Nam’s real estate market, one which lays the groundwork for development in the coming decade. — VNS