Property

According to the Vietnam Association of Realtors (VARS), the country’s real estate market is slowing down and any “land fever” has dissipated. House prices are forecast to remain under upwards pressure, however, as inflation, high demand, and low supply significantly push up costs.

According to the State Bank of Vietnam (SBV), as of May 31, outstanding credit for real estate stood at VND2.33 quadrillion ($99 billion), an increase of 12.31 per cent compared to the end of last year. Most credit went to owner-occupiers.

According to Ho Chi Minh City People’s Committee Chairman Phan Van Mai, the city believes that houses and land that are suitable should be auctioned to generate revenue. The city’s Department of Natural Resources and Environment and Department of Construction are working together on a review of houses and land to be auctioned.

The Binh Dinh Provincial People’s Committee has issued a Directive on strengthening tax management of the real estate business. Information on real estate transactions will be published on the south-central province’s Electronic Communications Portal to easily monitor, manage, and prevent violations.

Deputy Prime Minister Le Van Thanh has allowed the Bac Giang Provincial People’s Committee to change the use purpose of 72 ha of rice land in the northern province’s Hiep Hoa district to non-agricultural land to build the JUTECH Industrial Complex.

Many observers have noted that despite there being significant demand and strong growth momentum, Vietnam’s residential real estate market has not been able to develop healthily and sustainably. It still faces challenges from complex legal procedures, lack of land funds and investment capital, supply-demand mismatches, and rapidly increasing sales prices.