The three sets of Land Law 2024, Housing Law 2023 and Real Estate Business Law 2023 have been approved by the National Assembly, taking effect from August 1, 2024. Immediately after the new laws came into effect, the entire system from agencies, professional social organizations to real estate businesses "raced" with programs to disseminate and propagate knowledge of new laws.
After more than 6 months, local departments have accelerated the issuance of documents detailing the 3 laws, and agreed to develop decrees, decisions, and circulars to put the laws into practice. The new regulations are assessed to have had and are having many profound impacts on the Vietnamese real estate market.
Mr. Le Van Binh - Deputy Director of the Department of Land, Ministry of Natural Resources and Environment - said: "To evaluate how the real estate laws implemented in the past 6 months have affected the real estate market, whether they are good or bad, and what role they play, I think it is still too early to evaluate. Because it takes time for the law to permeate into products on the market."
With real estate available on the market, these are products from several years ago, even 10 years. Therefore, even if it is faster, it will take 2-4 years to have products according to the new policy.
Looking back in 2023 - 2024, lacking supply, the price increased very high and suddenly increased. If so, the workers were very difficult to find houses.
Mr. Nguyen Quoc Hung - Vice Chairman and General Secretary of the Vietnam Banking Association - shared that although housing prices are high, many investors can still buy and rent out houses because they expect the future, and can make a profit if they sell or rent out. But this is a big risk for the future, for both investors and businesses.
"In my opinion, by 2025, a warning should be issued that investors who "hold" many apartments will be very risky, because if the market loses liquidity, banks will not have enough strength to "support". I am concerned that the quality of housing is still the same but prices have doubled. Meanwhile, how many houses are left abandoned but the market is still lacking. Clearly, we see a problem of waste," said Mr. Hung.
The Vice President and General Secretary of the Vietnam Banking Association added that currently, banks keep lending, investors keep buying houses, later buyers have price differences with earlier buyers, and in the end the risk will fall on the final buyers, and they will bear the consequences.
