Topic: real estate

Department of Construction to boost inspections and supervision to identify and punish law-breakers.

Ultimate aim of efforts is to develop a stable, healthy, and sustainable real estate market.

At the Real Estate Forum 2022 with the theme "Supply of real estate market in Ho Chi Minh City: Practical issues to be solved" on October 28, Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association (HoREA), said that the real estate market has improved transparent with clear mechanisms and policies. However, safety and stability still lack due to the overlap between the Land Law 2013 and the Housing Law 2014 and other sub-law documents.

At the Real Estate Forum 2022 on October 28, with the theme “Supply of real estate in Ho Chi Minh City: Practical issues to be solved”, Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association (HoREA), said transparency in the market has improved with clear mechanisms and policies. However, safety and stability are still of concern due to the overlap between the Land Law 2013 and the Law on Housing 2014 and other legal documents.

South-central Ninh Thuan province is becoming the focus of special attention in the local real estate market. With outstanding advantages such as competitive prices and complete infrastructure, and with tourism being a spearhead economic sector, Ninh Thuan’s real estate market is forecasted to experience breakthrough growth.

Dr. Alex Pham, who holds a Ph.D. in Property Economics, is a Lecturer at Western Sydney University, and is General Director of FINA, said that one of the main reasons for losses of tax revenue in real estate transactions in Vietnam is a lack of transparency. He suggested it could learn from models in neighboring counties such as Thailand, Malaysia, and Indonesia.

To ensure Vietnam’s corporate bond market develops stably and sustainably, the Ministry of Finance and the Ministry of Construction will work together to strengthen supervision over issuance activities and limit real estate enterprises issuing bonds with high interest rates. The Ministry of Construction also suggested supplementing regulations on the financial safety ratio of real estate enterprises after granting construction and investment permits for real estate projects.

Amendments to certain laws, including the Law on Land, the Law on Housing, and the Law on Real Estate, are expected to be passed by the National Assembly by the end of 2023. Many analysts, however, believe there are conflicting and overlapping provisions between the laws, causing difficulties and even business stagnation.

The purchase of land plots and apartments in Ho Chi Minh City and surrounding areas fell by nearly 80 per cent in the third quarter of 2022. The DKRA Group has forecast that market demand and liquidity will continue to be affected over the closing months of the year by moves to increase interest rates and strengthen credit control.

Analysts attending the Digital Transformation Promotion Conference for Vietnam’s real estate market on October 7 offered three reasons for the slow digital transformation in the sector: slow perceptions, complicated technology, and data not being optimized.