At the conference “Real Estate in the Southwest 2024 – Embracing Opportunities in the New Era” recently held in Can Tho City, Mr. Duong Quoc Thuy – Chairman of the Can Tho Real Estate Association mentioned that 2023 was a difficult year for the real estate market and businesses. He cited that in just 11 months of 2023, there were 1,160 real estate companies leaving the market. Even the surviving large real estate companies had to restructure, dissolve subsidiaries, and downsize their workforce. Many construction and real estate firms have reduced their workforce by 50 to 80%.
According to Mr. Thuy, the turbulence in the Vietnamese real estate market is gradually coming to an end since late 2023. The market is starting to show signs of improvement, creating a foundation for the real estate industry to flourish in the coming years. Specifically, funding for real estate is becoming more accessible, bank interest rates are trending downwards, and amendments to housing laws, real estate business laws, and land laws are making a significant impact on the real estate market.
Western real estate seizes opportunities as infrastructure is completed.
Chairman of the Can Tho Real Estate Association analyzed that the Southwest region is one of the localities benefiting from positive factors in the real estate market. The region has a significant advantage from a series of key infrastructure projects, especially the completion and commencement of transportation infrastructure from 2023 to 2025, which will help boost the real estate market in the Western region.
In addition, the Mekong Delta region has been approved and announced with urban planning, which provides a legal framework for provincial socio-economic management, investment, and development, creating a catalyst for the real estate market of the region with great potential for growth.
Furthermore, with the passing of three real estate-related laws, special-type urban areas I, II, III can no longer be land sub-divided for sale. This will give an advantage to land projects currently being implemented in 2024. Land will continue to become scarce from January 1, 2025, making way for ready-built houses and condominiums. With the aforementioned regulatory changes, it is forecasted that the selling price of condominiums will increase, especially for the land segment in special-type urban areas which may experience significant growth.
Regarding the potential of reduced interest rates for loans from commercial banks, the gradual resolution of legal barriers for real estate projects, and the completion and announcement of provincial planning, they help investors assess the potential of investment fields, particularly in real estate.
