Real estate in selective recovery phase

The real estate market remains under pressure from exchange rates, inflation, and persistently high interest rates, forcing both developers and homebuyers to adopt a more cautious approach rather than the speculative investment seen previously.

- By Bich Ngoc

In the real estate sector, continued legal improvements are helping to resolve issues in stalled projects while unlocking new supply for the market.

In its annual report to shareholders released on April 12, Pham Thieu Hoa, chairman of Vinhomes, stated that the real estate market is expected to enter a phase of selective recovery this year, with a shift towards greener, transparent, and disciplined development.

“While the legal framework will continue to remove impediments and facilitate new supply, the business environment still faces legal and financial challenges, requiring developers to maintain a high level of adaptability. In this context, end-user demand and well-planned urban products that meet green living standards will remain the core drivers of the market,” Hoa said.

Data from Dat Xanh Services shows that buyer behaviour has shifted significantly, with customers spending more time researching, comparing, and evaluating before making decisions.

“The priority is no longer short-term speculation, but legally transparent products with cash flow potential that meet real housing demand. At the same time, the use of equity or safer financing packages is becoming increasingly common,” said its report released in April.

A notable feature of Q1 was strong market segmentation. Despite nearly 78,000 units available, absorption rates remained low at 15-25 per cent, indicating that capital flows are no longer evenly distributed.

Apartments in major cities continued to lead the market, posting modest price increases of 1-2 per cent, while land plots saw slower transactions. New supply was concentrated mainly in the north, while outlying areas faced liquidity challenges.

Amid a strong market filtering phase, many real estate firms are continuing to ramp up recruitment in parallel with project implementation.