Speaking at the National Scientific Conference "Vietnam's Real Estate Market in the Context of Amending the Law on Land, Housing and Real Estate Business" held today (October 10), Prof. Dr. Pham Hong Chuong - President of the National Economics University - said that in the period of 2022 - 2023, Vietnam's real estate market will face many difficulties and challenges, including causes related to legal problems. However, from 2024, the real estate market is expected to change positively when the above important laws are applied.
Previously, in November 2023, the National Assembly voted to pass the Law on Real Estate Business (amended) 2023; the Law on Housing (amended) 2023 and in early 2024, the most anticipated Law on Land (amended) was also passed.
The three laws mentioned above took effect from August 1, five months earlier than the previous resolution of the National Assembly, contributing to completing the final pieces of the legal picture for the real estate market.
"The real estate market has grounds to expect a more sustainable recovery, when an important legal framework is opened with many regulations and policy mechanisms affecting the market and participating entities. Although the Government has thoroughly directed and managed, many bottlenecks have not been cleared after the new legal documents come into effect," said Prof. Dr. Pham Hong Chuong.
Clarifying the changes in the real estate market and forecasting the market developments in the coming time, Prof. Dr. Hoang Van Cuong, Member of the Finance and Budget Committee of the National Assembly, Senior Lecturer at the National Economics University, pointed out that the number of apartment projects, social housing, and new products recently deployed is very modest. This may lead to a shortage of housing supply in the coming time.
According to Prof. Dr. Hoang Van Cuong, the market is currently experiencing an imbalance in supply and demand in some segments. In the context of weak product supply and high demand, Hanoi prices tend to increase rapidly. Meanwhile, in the southern provinces, including Ho Chi Minh City in the period of 2023-2024, demand is almost unchanged, prices of all segments are unchanged, and apartments alone are still increasing by about 6%.
According to Mr. Nguyen Van Dinh - Chairman of the Vietnam Association of Realtors (VARS), in the coming time, it is necessary to promote the affordable segment so that the real estate market can develop stably.
"Currently, there is an unreasonable development of housing segments in the market. The market is mainly the high-end segment for the rich and speculators. Currently, the Government is also determined to develop the social housing segment. However, the affordable segment is lacking, there are no new projects. This is the segment with the greatest demand but lack of supply and this is unusual.
"It is necessary to regulate the market in the direction of increasing supply when there is a shortage of supply, and increasing the supply when there is a shortage of a product segment. The implementation of the new legal framework and dissemination of new regulations also need to be accelerated," said Mr. Dinh.
