Topic: Real estate market

Solutions needed to tackle difficulties facing the sector.

Predictions have been made that the market will gradually recover next year and become healthier and more transparent and standardized in the second and third quarters.

State should only create mechanisms, with investors and enterprises sharing the risk.

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.

A Savills Q3 2022 real estate market report shows that new supply of apartments for sale in Hanoi rose 235 per cent quarter-on-quarter and 69 per cent year-on-year. In addition to improved supply, apartment transactions also grew positively, reaching 3,605, up 61 per cent quarter-on-quarter and 49 per cent year-on-year. Class B apartment transactions accounted for 64 per cent.

Macro-economic fluctuations have slowed Vietnam’s real estate market but investment flows are still going to the Mekong Delta thanks to public investment policies and improved transport infrastructure. The Delta is the largest producer and exporter of food, seafood, and fruit in Vietnam.

Northern Thai Binh province has emerged as a new industrial market in Vietnam’s north. It ranked 15th out of Vietnam’s 63 cities and provinces in FDI attraction in 2021, in large part due to the contribution of the Lien Ha Thai Industrial Park. In its two years, the industrial park has attracted a huge volume of FDI capital and become a spotlight for investment in the whole country, with the local real estate market expected to welcome a strong wave of investment.

Office leasing will continue to increase into the future, analysts believe.

Vietnam’s real estate market has exhibited a number of shortcomings in recent times, with prices rising compared to incomes and the market information database lacking synchronization and transparency. State management agencies are now reviewing regulations, identifying ways to diversify capital sources, and proposing policies to create new development drivers for the market.

Batdongsan.com and real estate investment fund Rich Invest have both forecast that Vietnam’s real estate market will continue to be quiet during the second half of the year because of tightening credit to the sector. Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, said the market is going through a period of rebalancing. House prices will increase due to rising costs and liquidity will decline.