Number of Real Estate Businesses Returning to the Market Increases
According to Batdongsan.com.vn’s April 2024 market report, the real estate bond market did not record any bond issuances by real estate enterprises.
Total foreign investment in real estate activities reached $1.6 billion, more than four times the figure for the same period last year. Specifically, Ba Ria-Vung Tau led the country with 1,521 million USD, followed by Hanoi, Quang Ninh, Bac Ninh, Thai Nguyen, and Hung Yen.
Additionally, the government is proposing to allow the Law on Housing and the Law on Real Estate Trading to take effect earlier, along with the Land Law 2024, which is also being submitted to the government for approval to take effect from July 1, 2024.
Source: Batdongsan.com.vn
Notably, in the first four months of the year, the number of real estate businesses returning to the market was 1,302, up 22.25% from the previous year. Meanwhile, the number of real estate businesses temporarily ceasing operations continued to increase (30.72% compared to the same period), and the number of newly registered businesses slightly decreased (10%).
Multiple Factors Support the Recovery of the Real Estate Market
According to Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, the Vietnamese real estate market in 2024 will witness positive changes due to three main driving forces.
Firstly, economic indicators serve as a growth driver. Mr. Quoc Anh stated that the growth momentum of the 2024 real estate market stems from positive shifts in the macroeconomic landscape. In fact, the economy, consumption, and tourism are all on an upward trajectory this year. GDP growth is trending upwards, reaching 5.7% in the first quarter of 2024, an impressive figure compared to the 5.1% GDP for the full year 2023.
Total retail sales of goods and services in the first quarter of 2024 reached VND 1,538 billion, higher than the same period last year. Additionally, international visitor arrivals to Vietnam reached 4.6 million, the highest in the last four quarters. These impressive figures will significantly boost the Vietnamese real estate market.
Secondly, capital sources for real estate. Lending rates have been continuously adjusted downward. Real estate businesses, investors, and homebuyers now have easier access to bank capital, facilitating the flow of money into the real estate sector.
Mr. Quoc Anh also emphasized that, in 2024, foreign capital will also “boost” the real estate market. In 2023, FDI and remittances to Vietnam were $36.6 billion and $14 billion, respectively. It is expected that FDI and remittances to Vietnam in 2024 will be higher than in 2023.
Moreover, new policies will create favorable conditions for foreign capital to flow more robustly into Vietnam. Specifically, according to Article 44 of the Land Law 2024, overseas Vietnamese are allowed to transfer real estate (previously, they were only allowed to manage unused houses). Article 80 of the Housing Law 2023 permits foreign capital and organizations to participate in developing social housing.
Thirdly, policy drivers. The Land Law, the Law on Real Estate Trading, the Housing Law, and the Law on Credit Institutions have all been passed and are expected to take effect in 2024 and 2025. Additionally, public investment will also drive the real estate market in the coming time, especially for key infrastructure projects in 2024.
