Sector Insight

In the first half of 2024, the real estate industry is starting to show signs of recovery as (1) the number of condos launched in Q2/2024 has improved compared to Q1/2024, (2) the absorption rate and the number of licensed projects have increased significantly, and (3) the corporate bond market has shown signs of recovery. However, we observe that the real estate market still faces many challenges as (1) real estate credit has not shown positive changes despite favorable interest rates, and (2) although there are signs of improvement, financial pressure in the bond market remains high.

We maintain our view that the real estate market will continue to enter a recovery phase from mid to late 2024 as (1) related real estate laws are simultaneously enforced from August 2024 and (2) attractive interest rates will support the market once legal issues are resolved. However, risks remain regarding large corporate bond payments in 2024.

#Real Estate #VHM #NLG