[NEWS] – What factors can "steer" the real estate market in 2023?

Despite being "braked", according to experts, this is also a healthy point of the real estate market from 2023 onwards.

Looking back at the source of the depression

The real estate market from the end of 2022 to now has been almost the opposite of most previous forecasts. “Brake” or “suddenly” are the phrases that most accurately describe the current real estate market.

The beginning was the turning of the car about limiting credit to real estate, and interest rates adjusted to increase continuously from the beginning of April 2022. From hot growth, the market quickly cooled down and moved to a quiet state with slow liquidity.

Along with that, the inspection and examination of real estate corporate bonds lead to the risk of insolvency when due, directly affecting investors. The climax is the cash flow difficulty that occurs in most real estate businesses, forcing them to cut personnel, reduce investment costs to the maximum, and maintain operations has been a great effort of the business in the past. this difficult period.

In addition, when the general financial market is having many problems, investors’ confidence declines and affects buying demand and liquidity in the market. This also indirectly affects the ability of many investors to implement new projects.

"Shocking" the market is necessary

From a macroeconomic perspective, expert Can Van Luc pointed out the difficulties of the real estate market at the moment. And this is also an inevitable consequence of a previous "hot" development process.

Firstly, Dr. Can Van Luc said that the real estate market is having to adjust after 2 years of hot growth, not only in Vietnam but also in the world. That is inevitable, including stocks and real estate.

Second, the market recently speculated a lot, associated with little real demand. Much speculation leads to the use of relatively high financial leverage. Real estate businesses sometimes "catch the enemy with their hands", using financial leverage when the market is difficult will inevitably lead to today’s story.

An industry expert also said that the most negative has been detected in 2022 and is being dealt with. This is necessary.

First, interest rates and the tightening of capital from banks were really high and tightly controlled.

Investors with weak financial capacity mobilized capital and misused capital have been revealed and are waiting to be handled.

Projects that are not legal enough to open for sale or raise capital, holding lights to run in front of cars have appeared. The market clearly shows investors who use excessive leverage, even "empty hands".

Next, the projects of subdivision selling plots that evade the law have been pointed out, have been, and are pending. The type of speculative real estate has been named by the state management agency and is about to have many changes in the upcoming revised Land Law.

A series of tricks to mobilize capital to transform has also gradually been revealed.

In addition, the policies and legal system are gradually being improved, more closely following the reality of market movements.

Therefore, a series of government policies to purify and re-regulate the market is necessary at this time.

Revealing new elements in 2023

Rapidly changing macro factors such as credit tightening, rising interest rates, and continued licensing issues, in the context of volatile international and regional markets, made investors also more cautious when opening and selling new products.

In the last six months of 2023, after the purification phase, the market will move to a new stage of more stable development. Supply is expected to increase again if banks’ credit policies are expanded. The price level will tend to increase but the rate will decrease and tend to be stable in the long run. Market demand will gradually recover following the general recovery of the financial market.

From the optimistic comments, it can be seen that the real estate market in 2023 has many "supports" with the expectation of "turning the wheel" to a new step of healthier development. In the opinion of many experts, the year of the Rabbit will be a "transitional" period of the real estate market. Despite many challenges, purification is bringing new expectations to the market in the long term.

Source: Collector