Real estate is still quiet

Although there have been positive signs thanks to the Government's drastic intervention recently, the real estate market has not really escaped its stagnant state.

The real estate market has not really come out of its depressed state.

Bright colours have begun to appear

Sharing at the seminar "Panorama of the real estate market in the first quarter of 2023 and real estate market developments in the second quarter of 2023", Dr. Nguyễn Văn Đính, Chairman of the Vietnam Real Estate Brokers Association, said that bright colours have begun to appear in the real estate market.

The three biggest bottlenecks in the market, credit, bonds and legal, are being fiercely fought by the Government to gradually remove them. Within the past 1 month, the State Bank has adjusted interest rates twice and will continue to adjust in the coming time to reach a reasonable level, approaching people's ability to pay. Along with that is information about the 120 trillion VND credit package of commercial banks.

Regarding legal procedures, the Government and ministries are also actively reviewing and removing obstacles for businesses. Recently, the Government issued Resolution 33, which has a notable regulation that allows real estate built on commercial and service land to be granted a certificate of ownership.

TS. Nguyễn Văn Đính, Chairman of Vietnam Real Estate Brokers Association

This is a long-term expectation of businesses and investors. This bottleneck has lasted for many years and has now officially been removed. In the coming time, resort real estate will gain more investor confidence, thereby promoting the development of this segment.

With the issue of bonds, Decree 08 and the amendment of Circular 16 are helping to remove obstacles for corporate bonds, creating a legal corridor for businesses to negotiate with investors, gradually solving the problem of approaching bond maturity.

Mr. Dinh said that the Government's recent directions and administration are a huge bright spot in the real estate market. The Government's continuous promulgation of very correct policies, targeting the difficult and problematic points of the market, is helping to build the confidence of investors and businesses to return to the market. This is a very important factor to help the real estate market gradually recover in the coming time.

Need strong leverage to create a push for the market to "rebound"

Although positive sentiment has been recorded, according to Mr. Dinh, the real estate market has not really escaped its depressed state.

The solutions to "troubleshoot" the market demonstrate the Government's determination to accompany real estate businesses. Add more confidence to businesses and individuals participating in the market. However, new solutions are being promoted at the "calming" stage. Not enough penetration and force to become a lever, creating a push for the market to "rebound".

Currently, the Government has not yet promulgated new laws and by-law documents such as decrees and circulars, leading to the inability to completely remove barriers. The market has positive signals but there are no specific results, not really getting out of difficulties and depression. Many businesses are still struggling, facing crisis and bankruptcy.

Seminar "Panorama of the real estate market in the first quarter of 2023 and real estate market developments in the second quarter of 2023" organised by the Vietnam Association of Real Estate Brokers function.

According to the Chairman of the Vietnam Real Estate Brokers Association, in the second quarter there will be more legal documents to remove difficulties for thousands of projects that are "laying the ground" waiting to participate in the market, providing the market with new supply.

If the market has more supply of products suitable for real housing and investment needs, the Government will continue to intervene drastically, promulgate the right policies and hit the bottlenecks, continuously remove remaining difficulties, interest rates will continue to be adjusted properly..., the market will have more prosperity.

In addition, in order for the market to truly get out of its stagnant state, the Vietnam Real Estate Brokerage Association also recommends that State management agencies need to speed up the promulgation of by-law documents to remove legal bottlenecks for thousands of investment and development projects that are "immobilized".

From a business perspective, Mr. Le Dinh Chung, Chief Executive Officer (CEO) of SGO Homes, said that state management agencies need to quickly remove legal obstacles. Expanding subjects eligible for loans and preferential credit for low-value products, new projects, and commercial projects. Tax support like during the Covid-19 epidemic, allowing real estate businesses to defer taxes from 6 to 12 months to support businesses through the current difficult period.

In addition, for real estate to develop safely, healthily, and sustainably, many experts and business representatives also believe that the market needs to soon balance the balance of supply and demand, promoting the development of the social housing segment.

According to Mr. Nguyen Chi Thanh, Vice President of Vietnam Real Estate Brokers Association, social housing is the segment with the highest demand today. However, current policies have not really attracted investors to participate in developing this segment, making the market supply unable to meet the large amount of current demand.

Therefore, the State needs to soon amend and issue decrees and circulars related to project transfer, land use fee calculation, compensation, site clearance, and social housing planning. At the same time, social housing policies also need to be flexible, without specific regulations on who can buy social housing to support businesses and people participating in this segment.

---

Source: TheLeader — theleader.vn. The article is reposted for the purpose of sharing knowledge for the founder and investor community in the ecosystem HCM VIF.