Property

With the domestic capital market still congested and home loan interest rates quite high at 11-14 per cent, the Viet Dragon Securities Corporation (VDSD) believes that, in 2023, real estate businesses will continue to face a host of difficulties. It is expected that recovery in the real estate market will take another 2 to 3 years.

Many businesses believe that the real estate market will see more positive changes in the near future, because profit streams from production and business usually pour into real estate in the last quarter of the year and public investment and FDI often increase at this time. Remittances flowing into the country are expected to hit $14-16 billion this year, which is cash that helps the market gain in liquidity at the end of the year.

Vietnam’s north is considered to have great potential for economic development and is part of the supply chain of a great number of international manufacturing ‘giants’.

One of the main reasons behind the difficulties facing north-central Thanh Hoa province in attracting FDI is that the construction of infrastructure at some industrial parks, especially those within the Nghi Son Economic Zone, has not been completed or developed. The province is therefore introducing a site clearance project for industrial parks in Nghi Son, to help boost investment.

At a conference on November 8 on removing difficulties and obstacles facing Vietnam’s real estate market, many in attendance said profits have fallen sharply and some real estate stocks have lost a lot of ground. It is therefore necessary for the government to adopt timely and effective solutions.

JLL Vietnam has said that the new supply of apartments in Hanoi was down 19.3 per cent during the third quarter compared to the previous quarter. It is forecast that new supply in the fourth quarter will again be lower than in the third. New demand may also weaken as buyers wait for interest rates to stabilize.