Illustrative image. (Source: Vietnam+)
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After a relatively “challenging” year for the real estate market and businesses, positive signals about new policy mechanisms, new planning, and capital inflows have been recorded. Many experts believe that this is an opportunity for real estate businesses to transform and revive the market in 2024.
The important thing now is that real estate businesses need to seize the opportunity and work together to “paint” a brighter market picture by sharing difficulties, restructuring products, and reducing prices even further, approaching the affordability of buyers to promote early recovery and sustainable development of the real estate market!
Seizing the opportunity for transformation
Sharing about the opportunity to revive the real estate market in 2024, Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, said that recently, the Government and central ministries and agencies have organized many meetings and proposed many solutions to remove difficulties for the market.
In particular, on January 18, 2024, at the 5th Extraordinary Session, the 15th National Assembly passed the Land Law (amended). This is a law that has received many comments from experts, associations, businesses, and over 12 million opinions from people nationwide; in which the law has added many important new points regarding land prices, land recovery…
The passage of the amended Land Law, along with the amended Housing Law and Real Estate Business Law, meets the requirements of improving the consistent policies and legislation on land management and use, suitable for the market-oriented socialist-oriented economic development system.
Especially, the announcement of new planning by many provinces and cities (such as Hai Phong, Hai Duong, Phu Tho, Da Nang, Quang Ngai, Can Tho, Ninh Thuan, An Giang, Ca Mau, Ben Tre, Kon Tum…) has opened up opportunities for businesses and investors to participate more actively in the real estate market.
 Real estate businesses need to show more determination in restructuring segments, accepting price reductions. (Photo: Hung Vo/Vietnam+)
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Meanwhile, according to the assessment of the Ministry of Construction, despite positive signals about policy mechanisms, planning, and capital sources, the real estate market in 2024 still faces many difficulties and challenges. This requires real estate businesses to also contribute, stimulate the market.
Representatives of the Vietnam Real Estate Association (VNREA) also believe that real estate businesses need to take immediate concrete actions, implement price reductions for housing products, not maintaining high prices while enhancing discounts, incentive policies, after-sales services to stimulate consumer demand in the real estate market, creating cash flow and liquidity.
In addition, real estate corporations and businesses also need to shift their investment focus to affordable housing segments, with prices suitable for people’s incomes, in order to contribute to removing difficulties for the market’s quick and sustainable recovery.
Sharing the same view, Dr. Can Van Luc – Chief Economist of BIDV, a member of the National Financial-Monetary Policy Advisory Council, emphasized that in the current situation, real estate businesses need to show more determination in restructuring segments, accepting price reductions, and diversifying capital sources to mitigate risks; reducing financial leverage, limiting scattered investments.
“Along with that, businesses need to focus on investing in completing ongoing projects, especially social housing projects, workers’ housing, affordable housing projects to gradually increase liquidity,” recommended Mr. Luc.
Which scenario for the market?
According to the forecast of the Vietnam Association of Realtors (VARS), 2024 will be the last year of the “overcoming obstacles” process of the real estate market. Although it may not “explode,” the market will gradually enter stability.
In 2024, the Ministry of Construction will focus on removing policies and promoting the safe development of the real estate market. (Photo: Hung Vo/Vietnam+)
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According to the forecast for the 2024-2025 period by VARS, the bottlenecks in real estate project approvals will be resolved, and the market will recover when the Housing Law, Real Estate Business Law, and Land Law (amended) are implemented on schedule and become effective.
Meanwhile, according to Associate Professor – Dr. Nguyen Kim Chung, former Deputy Director of the Central Institute for Economic Management, if the policies affecting the market in 2024 have no major changes, the real estate will continue its slow recovery trend. Therefore, to quickly recover and develop the market sustainably, there needs to be three supporting factors, including increasing foreign investment in the market; completion of documents under the laws passed; relaxation of financial and monetary tools.
Regarding the Ministry of Construction, Hoang Hai, Director of the Housing and Real Estate Market Management Department, said that the new provisions of the laws related to the real estate market that have been passed will be a significant step in policy making, creating an important legal framework, and completing the mission of reforming the shortcomings after a long period of application.
In the coming time, the Ministry of Construction will focus on implementing important solutions such as: Concentrating on removing policies and promoting the safe, healthy, and sustainable development of the real estate market; completing guiding documents for the newly passed laws; enhancing access to capital for the real estate market through a VND 120,000 billion credit package; focusing on developing social housing; effectively implementing Resolution 33/CP on solutions to promote the real estate market.
To restore and develop the real estate market soon, Deputy Minister of Construction Nguyen Van Sinh also expressed his hope that businesses will actively mobilize capital for specific project development; reduce financial leverage, limit scattered investments; focus on completing ongoing projects, especially social housing projects, affordable housing segments to increase liquidity, and meet the real housing needs of the people./.
Hung Vo
