The Vietnamese real estate market's development cycle will begin with the "first brick" in 2024

DNHN - According to Dr Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), 2024 will be the “first brick” for a new development cycle of the Vietnamese real estate market.

Accordingly, in the first and second quarters of 2024, the market will continue to maintain positive signals from the end of 2023 and is likely to recover significantly from the end of the third quarter onwards. Approximately 30%-40% of real estate brokerage personnel are and will return to the market. Large-scale sales programs and intensive communication campaigns will take place more regularly and continuously. This is considered a drastic action, demonstrating the very high determination of investors to overcome difficulties.

Dr Nguyen Van Dinh, Chairman of VARS, commented that although it is not yet possible to affirm that the market will achieve brilliant results in 2024, it is certain that 2024 is the “first brick” to lay the foundation for a new development cycle of the Vietnamese real estate market.

In 2024, mechanisms, and policies, especially those related to credit, will be absorbed and will more clearly show positive impacts on the market. Other industries directly affected by the real estate market, such as construction materials and interior production, will also recover.

The real estate segment of housing, especially social housing and affordable commercial housing, will play a good role as a pillar, leading the entire market from the middle of 2024. However, housing prices will remain high in both the primary and secondary markets, especially in big cities like Hanoi and Ho Chi Minh City.

Mr Hoang Hai, Director of the Department of Housing and Real Estate Market Management (Ministry of Construction), said that this is an important industry in the economic ecosystem and is directly related to many other industries. However, since 2022, especially from the middle of the year until now, the real estate market has faced many difficulties due to the general context of the world economy as well as Vietnam being in the process of recovery, but facing difficulties due to limitations and problems from before that have not been thoroughly overcome.

“Therefore, in 2023, the real estate market continued to decline sharply in purchasing power and liquidity; the lack of supply went hand in hand with an unreasonable housing product structure, an excess of high-end products while lacking housing suitable for the affordability of low-income groups in urban areas; real estate enterprises faced difficulties in accessing credit capital, issuing bonds and mobilising from customers; the number of completed and newly approved commercial housing projects decreased sharply,” shared Director Hoang Hai.

According to Mr Hai, in the face of the above difficulties, the State management agency and experts have provided many analyses and categorised the difficult issues that the market is facing, including institutional issues, bond issues, capital-credit issues and implementation issues.

On that basis, many mechanisms and policies were issued by the Government: Decree 10/2023/ND-CP to remove obstacles for granting pink books for types of real estate such as resort apartments and offices combined with resort use; Circular No. 02/2023/TT-BTNMT of the Ministry of Natural Resources and Environment on Certificates of Land Use Rights, House Ownership Rights, Other Assets Attached to Land and Amending and Supplementing some Articles of Circular No. 24/2014/TT-BTNMT dated May 19, 2014, stipulating land administration records.

Decree 08/2013/ND-CP removes obstacles for the offering and trading of corporate bonds; Circular 02/2023/TT-NHNN restructures the repayment period and maintains the debt group to support customers in difficulty; Circular 03/2023/TT-NHNN on credit institutions and foreign bank branches buying and selling corporate bonds; Circular 10/2023/TT-NHNN creates conditions for customers to access credit more favourably; related to construction activities, Decree 35/2023/ND-CP removes difficulties and problems from practice while waiting for the new Laws to take effect. Regarding planning: Decree 58/2023/ND-CP provides detailed regulations for some articles of the Planning Law…

Nhan Ha