[NEWS] - The real estate market is about to change "unexpectedly"?

According to Dr. Nguyen Van Dinh, from now until the end of the year, selling prices will continue to move sideways and may increase slightly if inflation decreases, interest rates fall and new supply is added.  

From the second half of 2022, the real estate market faced many difficulties and fell into a quiet time. Experiencing the first 5 months of 2023, the market is still waiting and is quite gloomy. However, the market recently appeared in a few bright spots, which is expected to reverse soon.

From March 2023, a series of documents and hot directives of the Government on the real estate market have been issued. More specifically, according to Resolution No. 22 on solutions to remove and promote the safe, healthy, and sustainable development of the market; including a credit package of about VND 120,000 billion for social housing, housing for workers, construction and renovation of old apartments; The Government continued to issue Document No. 178 to promote the real estate market.

As Decision No. 388/QD-TTg approved the project "Investing in the construction of at least 1 million social housing apartments for low-income people and industrial park workers in the period 2021 - 2030"; Decree No. 10 on "amending and supplementing several articles of decrees guiding the implementation of the land law".

On May 24, the State Bank of Vietnam issued a notice of one more reduction in the operating interest rate. Notably, this is the 3rd time in less than 3 months the State Bank has reduced the operating interest rate. Additionally, from the beginning of 2023 to now, banks also simultaneously reduced lending interest rates.

Mr. Tran Hong Ha - Deputy Prime Minister has recently signed and promulgated Official Dispatch 469/CD-TTg on dismantling and promoting the safe, healthy, and sustainable development of the real estate market.

During the recent regular Government meeting in May 2023, Deputy Minister of Construction Nguyen Van Sinh shared that in the past time, the Working Group has gone to localities to urge and listen to projects difficult projects, and at the same time will review difficult tasks such as in Ho Chi Minh City, Hanoi, Da Nang, Can Tho, Hai Phong, Binh Duong, Binh Thuan, Dong Nai... Therefore, the Working Group has identified difficulties and obstacles in terms of institutions and implementation of projects. Currently, the working group is coordinating with localities to continue to urge, review and remove.

However, the Government’s policies and directions need time to penetrate and revive the real estate market.

Chairman of the Vietnam Association of Realtors (VARS) - Vice Chairman of the Vietnam Real Estate Association (VNREA) - Dr. Nguyen Van Dinh said that the real estate market will have many changes thanks to the recently issued policy. Accordingly, with projects that meet market demand such as infrastructure projects, affordable housing projects, and social housing projects; capital flow for the real estate market was opened; improving cash flow for borrowers to buy social housing and affordable housing.

Dr. Nguyen Van Dinh said that when the revised Land Law 2023 is passed, it will help to remove the legal bottlenecks. Along with that, the approval of new projects is also faster, helping the housing supply gradually recover.

However, Mr. Dinh said that the following months will also see an improvement in real estate supply compared to the first quarter of the year, but the quantity is not significant. Meanwhile, housing is expected to see more than 27,000 new product launches. Industrial real estate also continues to expand thanks to potential projects in electronics and energy.

Mr. Dinh shared, about the selling price, from this period to the end of the year, the selling price will also continue to move sideways and may also increase slightly if there is a decrease in inflation, a decrease in interest rates, and new supply is added.

“For the mid-end and affordable apartment segments, prices will increase slightly when new supply is still as scarce as it is now. The rental price of office real estate and sales will not change much," Dinh said.

Dr. Can Van Luc, chief economist of BIDV, and a member of the National Monetary Policy Advisory Council, announced that from the fourth quarter of 2023, the recovery momentum of the real estate market will be clear. sharper. This is the time when policies to remove obstacles for the real estate market and the bond market will promote excellent efficiency.

According to Mr. Luc, never before have the laws related to the real estate market such as the Law on Land and the Law on Credit Institutions, the Law on Real Estate Business, and the Law on Housing been amended at the same time as now. Therefore, the primary legal bottlenecks will be removed.

After the Covid-19 pandemic nearly stabilized, the economy fell into crisis, creating difficulties for the real estate market in particular and the economy in general. The Government has made many amendments to create conditions to improve the situation of the real estate market, but there are still not many good signals. Many experts and investors still expect that the market will have good movements and will get rid of the difficulties they are facing. Indochina Holding also wishes to contribute a small part to the recovery of the current real estate market. Our unit currently has many projects with bad debt at credit institutions DATC and VAMC introduced to businesses to provide good investment opportunities.

Hoang Yen (Collection source)