During the first half of the year, the real estate market recorded divergent trends: while new supply continued to enter the market, transaction activity showed no corresponding improvement. Multiple market reports indicate that prospective buyers' cautious sentiment, coupled with elevated lending rates, is weighing significantly on overall market liquidity.
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1. Supply Expands While Purchasing Power Lags Behind
According to market research agencies, the volume of new inventory launched onto the market in the first half of the year continued to rise year-on-year, contributing to expanded supply across multiple segments, particularly in major metropolitan areas.
However, the volume of successful transactions fell short of expectations. Absorption rates across many developments were lower than in previous periods, indicating that buyers remain cautious before committing to acquisition decisions.
In key regions such as the North and the South, transaction volumes continued to account for the majority of nationwide activity, yet both recorded a decelerating trend. Meanwhile, other regions maintained liquidity at lower levels.
2. Mortgage Rates Continue to Weigh on Buying Decisions
A primary factor highlighted by market analysts is the persistently high cost of capital.
Following the expiration of promotional incentive packages, mortgage interest rates across numerous commercial banks were adjusted upward, increasing financial pressure on prospective buyers. This has notably impacted both end-users and investors relying on financial leverage.
In addition, credit growth dynamics and capital mobilization across the banking system have exerted upward pressure on benchmark interest rates, prompting many market participants to adopt a wait-and-see stance rather than transacting immediately.
3. The Market Enters a More Selective Phase
According to evaluations by various research firms, the market is shifting toward a more prudent phase of development following its prior period of rapid expansion.
Rather than focusing on capital appreciation expectations, buyers are currently prioritizing developments that meet strict criteria, including:
Comprehensive and transparent project legal status.
Reputable developers with proven track records.
Clear and verifiable construction progress.
Favorable locations with strong transport connectivity and infrastructure.
Alignment with genuine end-user housing demand or stable leasing and commercial potential.
This shift has enabled high-quality developments to continue attracting solid interest, whereas properties with incomplete legal documentation or lacking competitive advantages face greater challenges in securing buyers.
4. Developers Calibrate Sales and Marketing Policies
Amid subdued market liquidity, many real estate developers have maintained project rollout schedules while adopting more flexible commercial strategies.
Instead of introducing direct price reductions, numerous developers have opted for alternative solutions, such as:
Extended payment schedules.
Mortgage interest subsidies.
Lengthened preferential financing periods.
Flexible payment structures designed to reduce initial capital outlay for purchasers.
Property agencies and distributors are likewise prioritizing developments with high liquidity that effectively cater to genuine housing demand.
5. Outlook for the Second Half of the Year
According to forecasts from market research institutions, real estate supply may continue to rise in the closing months of the year as additional projects commence development or launch official sales.
Nonetheless, the prospects for a robust recovery in liquidity remain dependent on several variables, including interest rate trajectories, credit policies, buyer sentiment, and broader macroeconomic conditions.
In the short term, capital flows are projected to stay concentrated in developments featuring completed legal procedures, high construction quality, and developers with proven execution capabilities. These assets are considered well-positioned as the market pivots toward greater selectivity and sustainable growth.
This article is compiled and prepared based on market research reports and publicly available data from real estate analytics firms.
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