Property

According to the Ho Chi Minh City People’s Committee, the city’s real estate market is skewing towards the high-end segment and more affordable housing is needed. CBRE has said that the high-end segment has led the city’s real estate market since 2020 and accounted for over half of new supply in the first quarter of this year.

North-central Thanh Hoa province has approved a social housing project in Nam Ngan ward in Thanh Hoa city. On 28,000 sq m and with capital of more than VND3.7 trillion ($159.52 million), the project will build 2,400 apartments for low-income earners and is expected to be completed in 2027.

According to analysts at the “Controlling capital into real estate - Policy and impact” seminar on May 11, if banks continue to tighten lending to real estate then real estate businesses will face difficulties and many projects will lack capital and not be implemented. The supply-demand imbalance will increase as a result, leading to an escalation in housing prices.

One of the main challenges facing Vietnam’s real estate sector is that many businesses depend on credit while there have been regulations introduced recently to tighten credit to the sector. According to Mr. Nguyen Manh Khoi, Deputy Director of the Housing and Real Estate Market Management Department at the Ministry of Construction (MoC), when capital access is tightened, real estate is affected. Under a proposal from the MoC, the government will submit amendments to the Land Law, the Law on Housing, and the Law on Real Estate Business to the National Assembly, to open up development.

“Land fever” has spread all around Vietnam over the past three years. Faced with the risk of a real estate bubble forming and possibly bursting at any time, management agencies are trying to identify solutions to cool and re-regulate the market in order to make it a driving force of economic development.

The Dong Nai Provincial People’s Council has issued a decision to cancel 12 residential projects in Long Thanh district that were included on a list of land acquisitions but not implemented for three years. Most of the projects are in the southern province’s Long Thanh town and Long An, Long Phuoc, Phuoc Binh, and Tam An communes on a total area of some 220 hectares.