[NEWS] - Has the real estate market recovered in a row of timely dismantling policies?

Since the real estate market showed signs of difficulties, the Government has instructed ministries, branches, and localities to join hands to remove the challenges and promote the healthy development of the real estate market. This move was expected to help the real estate market recover soon. 

Continuously removing difficulties for the real estate market

Since mid-2022, the real estate market has started showing signs of deceleration in terms of liquidity, and businesses having cash flow problems. In that context, the Government quickly came up with solutions to remove difficulties in terms of capital, legality, and liquidity for this investment channel.

In the last months of 2022, the Government has continuously issued directives to provinces, documents, and public sites requesting relevant ministries and sectors to clear capital and stabilize the market. Notably, on November 17, 2022, the Government issued Decision No. 1435 to establish a working organization to review, urge and guide the removal of difficulties and obstacles in the implementation of the project. Real estate projects for localities and businesses.

Particularly in December 2022, the Government issued three Public Notices to deal with urgent issues, including many contents to remove the real estate market on issues of credit capital, corporate bond market, and corporate bond market legal problems as well as orientations to focus on developing the housing model.

In 2023, moves to remove difficulties for the real estate market will continue to be implemented by the Government. On February 17, the Government held a conference to remove and promote the safe, sustainable, and healthy development of the real estate market. In February, March, and April of 2023, the Government issued important guiding documents such as Resolution 33, Official Letter 178, followed by Decree No. 10 to promote and remove difficulties for the market. school.

The most recent is the Government’s Official Dispatch No. 469 dated May 25, 2023, on dismantling and promoting the safe, healthy, and sustainable development of the real estate market, which emphasizes the following requirements: land and real estate law; Creating favorable conditions for real estate project investors and home buyers to access credit capital; Remove difficulties and obstacles in determining land prices, making master plans and plans on land use.

The most recent is Official Dispatch No. 469 on May 25, 2023, of the Government on dismantling and promoting the safe, healthy, and sustainable development of the real estate market, which emphasizes the following requirements: improve the law on land and real estate; Creating favorable conditions for real estate investors and home buyers to access credit capital; Removed difficulties and obstacles in determining low prices, planning and using plans.

In addition, the Government has requested ministries, branches, and localities to implement many specific measures that have a direct impact on supporting the development of the real estate market. Up to now, the State Bank has made 4 adjustments to reduce operating interest rates. Based on this, many banks have also lowered interest rates on real estate loans. On the side of the Ministry of Finance, this unit has submitted a report to the Government regarding the bond amendment. Other relevant ministries such as the Ministry of Natural Resources and Environment and the Ministry of Construction have offered many solutions to solve project legal problems for the real estate market.

The real estate market is recovering

Assessing the recent policies of the Government together with the ministries, experts said that the Government’s economic regulation solutions have contributed to supporting the real estate market, not falling into the "closed-down" scenario ice", restoring the confidence of businesses and investors in the market...

Dr. Can Van Luc - a Member of the National Financial and Monetary Policy Advisory Council, and an economist at BIDV, said: The Government has had urgent and timely solutions to solve the 4 biggest difficulties of the Government. The current real estate market is about legal, capital, supply, and demand relationships and planning.

Based on positive signals from the Government’s drastic direction through mechanisms, policies, and solutions to support the real estate sector, Dr. Can Van Luc has predicted that the market can now recover in the third quarter of 2023.

From the perspective of a market research unit, the General Director of Colliers (Vietnam), Mr. David Jackson assessed: The Government’s solutions are macro-regulatory, ensuring balanced development for market participants wall and stable growth for the country.

“When working directly with many foreign investors, I find that they have carefully observed and commented well on these moves. So, in the end, what they are aiming for is a transparent and healthy investment environment with a complete policy foundation and the Government is doing a good job of that," Mr. Jackson added.

With a series of solutions issued by the Government, the real estate market has now started to show signs of improvement. Since May, the liquidity in some projects of large investors with prime locations has increased. In the secondary market, buyers have boldly made decisions to reduce money in the context of cooling interest rates, the market is gradually entering a stable trajectory.

The market’s recovery scenario is also forecasted by observers to appear soon when the product absorption index in the secondary and primary markets is improving significantly, especially in the context of difficult points of any real estate market. Real estate is gradually being dismantled.

Hoang Yen (Collection source)