Apartment blocks under construction in HCM City. (Photo: VNA)

Hanoi - The real estate sector is finally emerging from its slumber as the economic recovery in the third quarter of the year has triggered a resurgence of demand for realty properties.

Nguyen Van Dinh, chairman of the Vietnam Association of Realtors (VARS), said Vietnam’s economy was picking up in Q3 with a quarterly GDP growth rate of 5.33 per cent. The optimistic outlook has fueled demand for housing across the spectrum.

The State Bank of Vietnam has given another push to the market by cutting policy rates four consecutive times since March. The drops in interest rates make home ownership increasingly affordable to a broader range of buyers, creating more demand for housing.

According to a recent survey by VARS, 60 per cent of respondents said their customers would continue to invest in realty properties if interest rates keep falling, but with a risk-averse rather than a risk-taking stance.

Le Dinh Chung, director-general of SGO Homes, said the bearish trend was over in some realty segments in big cities, especially residential apartments.

In the land lot segment, the market can absorb between 70 to 80 per cent of the supply at bid prices within 5 per cent of ask prices. Sellers can easily make a sale for between 30 million VND (1,227 USD) to 50 million VNDper lot.

"But the resort segment remains lackluster," said Chung.

In Q3, around 6,000 deals were reached across the country, one and a half times the number in Q2 and two times the level in Q1, indicating a fast recovery in the sector.

Nguyen Hoang Nam, director-general of G-Home JSC, said even if the project of one million social housing kicks into high gear, it would not be able to quench the huge demand for affordable apartments.

He said the social housing shortages were more severe in reality as the sale of social apartments had slowed down due to legal complications. He called for measures to remove the setbacks to make social housing accessible to a wider range of buyers.

VARS Secretary General Tran Van Binh said "restoring customers' confidence in the market" was the last step to lift sentiment in the sector and get it back on track. He also said the market would pick up steam in Q4 and maintain its momentum into 2024.

It is worth noting that VARS published on October 10 the report titled "Assessing the recovery of the real estate market in Q3 and forecasts for Q4/2023". Experts applauded the report, saying that its price indicators would serve as a benchmark for land price calculation and realty supply regulation.