Real Estate Market Shows Signs of Recovery

Được viết bởi Mary Smith trong Business Today

The real estate market in Vietnam is showing promising signs of recovery, with experts predicting a brighter future ahead. After a period of tightening, the real estate sector has seen an increase in investment following four interest rate cuts by the State Bank of Vietnam. The government has also taken several measures to alleviate difficulties in the market and support real estate investors and citizens. These efforts have been described as unprecedented in the history of Vietnam’s real estate development.

Easing the Storm

According to Dương Quốc Thủy, Chairman of the Can Tho Real Estate Association (CaREA), the turbulence in the Vietnamese real estate market is gradually subsiding, giving way to brighter prospects in the coming years. The recent interest rate cuts and government support have played a significant role in stabilizing the market. The government has issued over 20 resolutions, decisions, decrees, circulars, and official letters aimed at addressing market difficulties and supporting real estate investors and citizens.

Caption: Khách hàng xem phối cảnh chung cư cao cấp do Công ty CP Dịch vụ và Đầu tư Đất Xanh Miền Tây làm chủ đầu tư. Ảnh: LINH MỸ

Cấn Văn Lực, an economic expert, believes that recent legislative changes, such as the revised Business Law, Housing Law, and Land Law, have had a positive impact on the real estate market. These changes have introduced important legal concepts and eased business conditions, allowing more Vietnamese citizens living abroad to engage in real estate activities.

In Can Tho, a city in Vietnam, the real estate market has shown positive signs despite challenges. Total real estate transactions in Can Tho in 2023 reached 7,155, a 20% decrease compared to the previous year, primarily due to a shortage of new products and market conditions. However, in the fourth quarter of 2023, transactions increased by 8% compared to the third quarter.

Resurgence

The Mekong Delta region, known as the ĐBSCL region, has gained attention from the government and investors as various projects are being implemented. Improved transportation infrastructure between Ho Chi Minh City and Can Tho has reduced travel time and facilitated economic and trade connections. The investment in infrastructure has created economic growth and trade opportunities between Can Tho and the ĐBSCL region, as well as Ho Chi Minh City and the Southeast region.

Nguyễn Văn Đính, Chairman of the Vietnam Real Estate Brokers Association, and Vice Chairman of CaREA, stated that the ĐBSCL region still has untapped potential in terms of land reserves and real estate value. The region offers lower real estate prices compared to other parts of the country. The government’s commitment to invest in the ĐBSCL region will unlock its potential and drive future development. Local provinces and municipalities must seize this opportunity by focusing on improving infrastructure and service systems to meet the needs of residents and stimulate economic growth.

As the center of the ĐBSCL region, Can Tho’s real estate market is expected to thrive due to ongoing and upcoming projects that will have a significant impact on the entire region. Projects such as the Vĩnh Thạnh Industrial Park, the Cồn Ấu 18-hole golf course, and the AEON Mall Can Tho commercial center are expected to contribute to the city’s economic and social development. These projects are predicted to create job opportunities, attract investments, and promote trade and services, including real estate.

In addition to government initiatives, the approved regional planning for the ĐBSCL region will play a critical role in managing and developing the region’s economic and social sectors between 2021 and 2030, with a vision towards 2050. This planning framework will unlock the region’s potential for real estate development.

According to Đỗ Công Nguyên, Secretary General of CaREA, the supply of primary projects in the ĐBSCL region will be scarce, particularly in the apartment segment, which is expected to see a 5-10% price increase. High-end condominiums have become a popular choice for residence and investment. On the other hand, land prices are expected to rise sharply due to a regulation that prohibits land parcelization in special, type I, II, and III urban areas starting from January 1, 2025. Products with proper legal documentation, developed by reputable investors, and meeting market demands with favorable prices and policies will attract a large number of customers and investors.

Strengthening Market Information

To further support the real estate market’s growth, experts recommend that government agencies expedite the issuance of guidelines that ensure consistency and synchronization between the revised Land Law, Housing Law, and Business Law, as well as other related laws. Real estate businesses are urged to restructure and incorporate sustainable and digital practices. The government should also enhance market information dissemination to the public and relevant institutions to foster a more transparent and professional real estate market.

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