Real estate market expected to roar back this year

Hanoi – The domestic real estate market is believed to have reached the bottom and expected to roar back to life this year thanks to a slew of measures taken by the Government, ministries, agencies and localities.

The Government and the Prime Minister have issued various documents and organised many conferences to get opinions from businesses, people and experts in ways to remove difficulties for the market.

Notably, the Government’s Resolutions No. 33/NQ-CP and No. 97/NQ-CP have identified solutions, one of which is that real estate firms should prioritise paying debts and consider restructuring prices and products based on the real demand, said Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association.

Another is Decree No. 08/2023/ND-CP which removes problems in the individual bond corporate bond market, he continued.

Chau also mentioned the Government programme to construct at least one million units of affordable “social housing” during 2021-2030, and the 120 trillion VND (4.92 billion USD) credit package launched by the State Bank of Vietnam (SBV) with incentive interest for both developers and buyers.

At the same time, the central bank has focused on perfecting the legal framework, streamlining procedures, and increasing preferential credit packages to make it easier for people and enterprises to access bank loans, according to SBV Standing Deputy Governor Dao Minh Tu.

The National Assembly (NA) has adopted the Housing Law and the Law on Real Estate Business, which are expected to create a boost for the market after they take effect in early 2025.

Experts, however, pointed to outstanding challenges in terms of institutions, credit loans, bonds and the implementation of mechanism and policies in localities.

Nguyen Quoc Hiep, Chairman of GP. Invest, said there are almost no new projects at present owing to legal problems, which is also the main cause behind the supply-demand mismatch.

Given this, he suggested localities actively engage in reforming administrative procedures and untangle knots for the ongoing ones. He also pins hope on a new Land Law, saying that it will decide the recovery of the property market.

Economist Can Van Luc held that the rebound would be seen more clearly from the second quarter of this year when the Government’s incentives begin to work, financial cases are settled, and the corporate bond market sails through the rough time.

Foreign investors are increasing their presence in Vietnam’s real estate market with a range of activities to expand their portfolios.

Real estate companies are offering discounts, promotions, and after-sales policies that are beneficial for customers.

Although it was the segment achieving the best growth in property in 2023, industrial real estate is forecast to face many uphill battles in 2024.