Act genuinely, invest genuinely
Three amended laws on real estate, including the Land Law, Housing Law, and Real Estate Business Law, have taken effect from August 1, 2024.
According to TS Nguyễn Văn Đính, Vice Chairman of the Vietnam Association of Realtors, when the laws take effect, businesses will no longer be able to act recklessly, and developing projects will become much more challenging. “Investors must be genuine actors. The phenomenon of catching waves and surfing on virtual waves will no longer occur when the new regulations take effect,” Mr. Đính said.
Mr. Vương Duy Dũng, Deputy Director of the Department of Housing and Real Estate Market Management (Ministry of Construction), said that the Law has many new provisions that create favorable conditions for organizations and individuals to participate in the market.
“The most important thing is that market information must be publicly disclosed on the websites of functional agencies such as the Ministry of Construction or the websites of businesses. At that time, the subjects can refer to and the activities of real estate exchanges will be transparent,” Mr. Dũng said.
Mr. Dũng added that thanks to the public disclosure of housing information, the issue of price inflation and virtual prices will be addressed, and information about prices will be transparent.
Real estate law expert Nguyễn Văn Đỉnh also noted that the new regulations will lead to changes in the market structure and the scale of businesses. Through the new mechanism of auctions and tenders, large investors with strong financial resources will have an advantage in developing the market, while businesses with poor performance and limited experience will gradually be eliminated.
Investment confidence
According to the Can Tho Real Estate Association (CaREA), land prices in the Mekong Delta region remained largely unchanged in 2024. Specifically, the apartment segment, mainly developed in Can Tho City, increased by 5-6% in the first six months of 2024.
CaREA predicts that in the second half of the year, demand will still focus on the apartment segment with real demand, at a suitable price. The apartment segment will maintain stability and may increase by 5-7%, while land prices will start to increase by 8-10% compared to the first six months of the year.
As the real estate market warms up, Mr. Nguyễn Minh Tâm (Ninh Kiều District, Can Tho City) is preparing to pool funds to invest in land plots to wait for the end-of-year wave. According to that, Mr. Tâm is very optimistic that when the laws related to real estate take effect, the phenomenon of price inflation and virtual prices will be addressed to avoid risks when investing.
“If the new laws help the market to be transparent and clear about prices, preventing the creation of virtual prices will be an opportunity for investors and real estate buyers to access projects that match reality,” Mr. Tâm said.
Mr. Huỳnh Văn Tạo (Ô Môn District, Can Tho City) is also targeting the apartment segment for investment. Therefore, Mr. Tạo is waiting for the new law to take effect to help small and individual investors like him avoid being swept up in the wave of catching and surfing on virtual waves.
“A transparent and public market, I can make decisions and reduce risks when searching for suitable real estate projects for investment. Moreover, I think, before the new laws are applied with changes in the mechanism of auctions and tenders, I need to study and connect with other investors to avoid being eliminated,” Mr. Tạo shared.
