Support from macro factors and policies
According to records, the heat of the market is being led by the apartment segment with prices continuously reaching peaks in both the primary and secondary markets. Land and private houses are also showing positive signs as investment demand is gradually returning.
According to Dr. Can Van Luc - economic expert - Vietnam's real estate market is showing many positive prospects in the new context. In which, factors such as favorable macro, new policies issued and gradually put into practice are the main supports, opening up new opportunities for Vietnam's real estate market.
On the macro side, the expert said that the macro economy is stable, inflation is increasing under control. In particular, bank interest rates in Vietnam remain low, and exchange rates are also on a gradual downward trend. Factors such as budget deficit, public debt, foreign debt, and government debt repayment obligations are all within the threshold allowed by the National Assembly, which are favorable factors for the investment environment and economic development.
In particular, the Decrees and Circulars guiding the 2024 Land Law, the 2023 Housing Law and the 2023 Real Estate Business Law are important supports for the market in the coming period. In particular, the Decrees stipulate land prices; compensation and site clearance; resettlement support and compensation; issuance of land use right certificates; land use fees and rents, etc. The Decrees stipulate the construction and management of information systems and databases on housing and the real estate market; detailing a number of articles of the Law on Real Estate Business; detailing the renovation and reconstruction of apartment buildings; and the development and management of social housing, etc.
Dr. Can Van Luc emphasized that the above Decrees and Circulars are extremely important in guiding the implementation of new laws, putting new policies into practice and promoting the healthy and stable development of the real estate market.
Many new policies are passed, credit is improving
At the 8th Session of the 15th National Assembly, which ended on November 29, 2024, many laws and policies related to planning, investment, financial markets, and real estate were passed by the National Assembly.
In which, the Law on Urban and Rural Planning; the Law on Public Investment (amended); the Law on amending and supplementing a number of articles of 4 laws (the Law on Planning, the Law on Investment, the Law on Investment under the PPP method and the Law on Bidding); the Resolution approving the investment policy of the North-South high-speed railway project; the Resolution on thematic supervision of the real estate market and social housing; the Resolution on piloting the implementation of commercial housing projects through agreements on receiving land use rights or having land use rights ("residential land and other land"); the Resolution on specific mechanisms to remove difficulties and obstacles for projects and land in the conclusions of inspections, examinations and judgments in Ho Chi Minh City, Da Nang and Khanh Hoa.
Regarding capital sources for the real estate market, Dr. Can Van Luc said that by the end of September 2024, outstanding real estate credit reached VND3.15 trillion, accounting for nearly 21% of the total outstanding debt of the economy. Real estate loans increased by 9.15%, higher than the general credit growth of 9%, of which real estate business loans increased by 16%, housing loans increased by 4.6%. The figures show that real estate credit has shown positive signs of recovery.
Mr. Bach Duong - General Director of PropertyGuru Vietnam - commented that currently, the Vietnamese real estate market is facing many challenges when many real estate businesses have revealed financial and legal weaknesses; real estate consumers still face many difficulties in the process of learning about and choosing products; investors and brokers also face challenges in finding customers and building reputation.
Mr. Bach Duong believes that macro fluctuations always play an important role in forming cycles of the Vietnamese real estate market. And the answer of time is that through many ups and downs and changes, from the first steps, the market has continuously improved, refined and moved towards sustainability.
