[NEWS] When does the real estate market show signs of "reversal" going up?

After a series of policies, and the decision to issue a resolution to remove difficulties for the real estate market recently, experts have assessed it, has a positive impact, and can expect an early recovery time, which is likely to fall at the end of 2023.

Prospects for the development of the real estate market

At the end of 2022, Deputy General Director of Batdongsan.com.vn - Mr. Nguyen Quoc Anh identified 3 macro factors that affect the ability of the real estate market to change direction, credit growth, and policies are 2 factors that bring positive impact and accelerate the process of turning around for the market.

At the moment, policies and decisions have been issued recently, such as the support package for social housing, and the establishment of 5 working groups to remove public investment, according to Decree 08 on regulations on bonds, Resolution 33 on solutions to remove difficulties for the market, had a positive impact and was consistent with the unit’s forecast about the reversal signal of the real estate market.

According to Decree 08/2023/ND-CP extending the bond term for 2 years, it is expected that the time and conditions will be extended so that real estate businesses will be able to remove projects that are having legal problems. management, project transfer (M&A), or accumulating cash flow from sales to be able to pay bonds to maturity. When investors’ confidence returns to projects that have been legally removed, the issuance of new deposits and the issuance of corporate bonds will return, making payment or liquidity easier. 

Decree 08 not only helps reduce pressure on businesses, but it also protects investors. For bondholders who do not want a 2-year extension, the decree directly protects their interests because of their right to choose their business, not to extend it arbitrarily. For investors in need, the business will have time to restructure, not sell assets cheaply, thereby preserving the value of assets in a short time to be able to ensure the interests of investors. In addition, investors with less than 2 billion in securities and idle savings at banks can participate, supporting market liquidity. When liquidity increases, it will provide good support for investors’ new releases, as well as business classifications.

Appreciating the positive signals from Resolution 33/NQ-CP, Mr. Nguyen Quoc Anh said: “Resolution 33 shows the Government’s determination in removing bottlenecks of the market, especially about capital, legal. Real estate enterprises facing difficulties will be considered to extend loan principal and interest and restructure debt groups. The Government also requested the State Bank to consider appropriate adjustments of the risk coefficients of real estate types to have a loan interest rate limit more suitable to the market, avoiding capital flow control exceed.

In addition, the resolution clearly stated the important goal of speeding up legal handling and removal related to real estate projects to support and create a supply in the market. This is an extremely important factor because the real estate market currently has more than 100,000 apartments under construction. If the procedures that affect the project’s progress are approved, it will improve the supply in the market and better meet the needs of buyers.

In 2023, the time that real estate experts and investors hope will have more positive changes, the bottleneck will be removed. Currently, there are many projects with bad debt at credit institutions DATC and VAMC being introduced to businesses by Indochina Holding to provide investment opportunities and contribute to the rapid promotion of the real estate market bustling again.

Yen Dang (Collection source)