Hanoi (VNS/VNA) - The real estate sector is finallyemerging from its slumber as the economic recovery in the third quarter of theyear has triggered a resurgence of demand for realty properties.

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

The State Bank of Vietnam has given another push to themarket by cutting policy rates four consecutive times since March. The drops ininterest rates make home ownership increasingly affordable to a broaderrange of buyers, creating more demand for housing.

According to a recent survey by VARS, 60% of respondents saidtheir customers would continue to invest in realty properties if interest rateskeep falling, but with a risk-averse rather than a risk-taking stance.

Le Dinh Chung, director-general of SGO Homes, said the bearishtrend was over in some realty segments in big cities, especially residentialapartments.

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

"But the resort segment remains lackluster," saidChung.

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

Nguyen Hoang Nam, director-general of G-Home JSC, said evenif the project of one million social housing kicks into high gear, itwould 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 ofsocial apartments had slowed down due to legal complications. He called formeasures to remove the setbacks to make social housing accessible to a wider rangeof buyers.

VARS Secretary General Tran Van Binh said "restoring customers' confidencein the market" was the last step to lift sentiment in the sector and getit back on track. He also said the market would pick up steam in Q4 andmaintain 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 forQ4/2023". Experts applauded the report, saying that its price indicatorswould serve as a benchmark for land price calculation and realty supplyregulation./.