housing law

The real estate market will gradually improve over time

At the Forum, Mr. Hoang Hai, Director of the Department of Housing and Real Estate Market Management (Ministry of Construction) said that the real estate market in 2023 has many problems such as poor purchasing power, lack of supply, and unstable structure. suitable, lack of suitable segments for low-income people, capital sources for real estate and bond issuance also have many “barriers”.

The scarce supply has greatly affected the market. Among the causes of “difficulties” for projects, businesses and the real estate market, up to 50% are related to institutions and legal issues, along with the implementation of competent agencies. In addition, real estate businesses face many difficulties in accessing credit loans, issuing bonds and mobilizing capital from customers. Number of newly completed and approved commercial housing projects are all reduced.

Mr. Hai said that from the beginning of 2023 until now, the Government and the Prime Minister have directed drastically, ministries and branches have worked with high determination to build and perfect the legal framework system and policies for foreign trade. with activities to control, regulate, and support the real estate market to ensure the synchronization and connectivity of the legal system related to land, construction, housing, real estate business, and securities. securities, credit and reduce time to resolve administrative procedures.

Along with the timely promulgation of policies, the legal corridor was also completed with the passage of two related laws that have a major impact on the market, the Housing Law (amended) and the Real Estate Business Law (amended). ). Currently, the government is submitting to the National Assembly for consideration and approval at the upcoming National Assembly session the Land Law project (amended); Law on Credit Institutions (amended). These laws, when they come into effect, will truly be a major change with a strong impact, increasing supply as well as regulating real estate market prices to be more suitable for people.

Regarding social housing, Mr. Hoang Hai also said that with the focus of government and local levels, up to now in the period 2021 – 2030, there have been 470 social housing projects nationwide. Association for low-income people and industrial park workers has been completed and is being implemented.

In particular, the Government Working Group has reviewed, urged and promptly resolved difficulties for a series of real estate projects in many localities. However, local reception has recorded changes but the results are still modest.

“In general, the current real estate market is still very difficult, but the level of difficulty tends to decrease over time, each month is better than the previous month, the next quarter is better than the previous quarter. This shows very clearly. clearly in the real estate market in Ho Chi Minh City”, Mr. Hai commented.

The real estate market in 2024 will continue to “overcome obstacles”

From an actual survey, the Vietnam Real Estate Brokers Association commented that in 2024, many macro factors will positively impact the market such as: home loan interest rates continue to be adjusted downward and social housing continues to increase. continues to be the focus of the Government’s housing development program. At the same time, planning approval in localities in the period under consideration will be promoted to complete soon; Focusing on promoting public investment, creating economic momentum in many key regions across the country… will be a “support” for the market.

The absorption rate has gradually increased over the quarters, but the transaction volume still depends heavily on the quantity of supply. Total transactions gradually increased in the last quarters of the year, of which the first quarter was 2,700; the second quarter was 3,700; The third quarter was 5,778 and the fourth quarter was 5,710 products. Total transactions for the whole year 2023 reached 18,600, equivalent to 2022 (18,900 products).

The real estate market in 2024 is expected to be stable and is forecast to welcome the return of about 30-40% of real estate brokers. The residential real estate segment will lead the market from mid-2024 with a total apartment supply estimated at over 30,000 products; Of which, Hanoi has 15,000 products, City. HCM 5,000 products and Binh Duong about 10,000 products.

While industrial real estate is still considered a good growth segment, tourism and resort real estate continues to face many challenges; Commercial real estate has not fluctuated. Notably, mergers and acquisitions (M&A) activities still maintain their attractiveness.

Dr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association, Chairman of the Vietnam Real Estate Brokers Association, said that the real estate market in 2023 will face many difficulties, covered in gray tones. Thousands of projects had to stop operating, the number of new projects was scarce, leading to many businesses “scratching” existence, many brokers had to quit… However, thanks to a series of policy supports and moves, Real estate market developments in regions and localities will gradually improve in the last months of 2023.

“Along with the signs of market recovery, the confidence of customers and investors is increasingly strengthened. The clear willingness of investors to sell through the application of a series of preferential policies has not yet been established. ever. Towards the end of the year, the supply improves, increasing choices for customers and investors,” Mr. Dinh shared.

Forecasting the market, the Vietnam Real Estate Brokers Association believes that 2024 will likely be the last year of the process of “overcoming obstacles” of the real estate market. The market will gradually become “stable” and the overall picture may change in a more positive direction.