Assoc. Prof. Dr. Tran Kim Chung: The 1987 Land Law laid the foundation for the real estate market

DNHN - Assoc. Prof. Dr. Tran Kim Chung, former Deputy Director of the Central Institute for Economic Management, states that the 1987 Land Law laid the groundwork for the development of the real estate market.

Assoc. Prof. Dr. Tran Kim Chung, former Deputy Director of the Central Institute for Economic Management, highlighted the development of Vietnam's real estate market over multiple cycles. He noted that the market has gone through four primary cycles plus an additional transitional period since 1986. Each cycle has been marked by the introduction or refinement of the Land Law, progressively shaping a relatively developed real estate market.

According to Dr. Chung, the 1987 Land Law laid the foundation for the market, but land transactions in this period were still largely informal and unregulated. The 1993 Land Law introduced the concept of land value, giving rise to a nascent market. The 2003 Land Law further identified land use rights as a special commodity, facilitating the strong development of real estate types, especially high-rise apartment buildings.

From 2013 to 2023, when the 2013 Land Law, along with the 2014 Housing Law and Real Estate Business Law, came into effect, the market achieved remarkable milestones. The involvement of banks and the credit system spurred significant growth, bringing the real estate market closer to consumers. Dr. Chung referred to this period as one of monetization, marking a fundamental transformation in the market's operational structure.

At the "Capital Flow into Southern Real Estate" seminar held on October 31, experts noted that Binh Duong is emerging as a hotspot in the southern real estate market. With its favorable location near Ho Chi Minh City, Binh Duong is not only attracting residents but also becoming an ideal location for business development. As a result, demand for commercial housing in this area is on the rise, creating ample opportunities for investors.

Dr. Chung emphasized the importance of transportation infrastructure development in Binh Duong as a key factor. Major infrastructure projects, such as the My Phuoc–Tan Van Expressway, the Ring Road 3, and metro lines currently under development, are expected to enhance mobility and trade, thereby boosting the area's real estate value.

"In light of the various risks present in the real estate market, experts recommend that investors establish a smart investment strategy. Carefully analyzing factors such as market demand, profitability, and especially personal financial capacity will help investors make more informed decisions," he said.

According to Dr. Chung, investors should also consider diversifying their investment portfolios. Instead of focusing solely on one type of real estate, allocating capital across multiple segments can mitigate risks and enhance profitability. Segments such as serviced apartments, shophouses, and resort properties are also increasingly attractive in recent times.

While the current real estate market faces many challenges, experts believe that supportive government policies and growing market demand provide a promising outlook for future growth. Additionally, the entry of foreign investors is expected to create healthy competition, enriching the Vietnamese real estate market.

In a rapidly transforming real estate market, recognizing and seizing investment opportunities will be a decisive factor for investor success. With thorough analysis and smart investment strategies, the southern real estate market is expected to continue attracting strong capital flows in the near future.

Nghe Nhan