1. 2. Real estate market in Vietnam showing signs of recovery

The Vietnamese real estate market shows signs of warming up, with improved supply from Q4/2023, mostly from subsequent phases of existing projects, yet still insufficient to meet actual market demand, especially in the affordable housing segment. Positive signals include improved demand, diverse supply from investor sell-offs, and reduced interest rates.

Investors are entering the market for properties priced from 3 to 5 billion VND, anticipating a new growth cycle starting in early 2024. Large-scale projects across the country are initiating sales campaigns, and decreasing home loan interest rates are prompting a shift towards real estate investment, driving market recovery. Various housing projects are launched, spanning from the North to the South, with statistics indicating increased sales transactions in the secondary market. To ensure a safe, healthy, and sustainable market, a balanced supply and demand are crucial, requiring state regulation through land allocation and favorable policies for affordable commercial housing development.

Source: vietstock.vn

1. 3. Vietnam to post faster growth over other countries in 2023: CIEM

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The Central Institute for Economic Management (CIEM) forecasts Vietnam’s GDP growth at 5.19% in 2023, a decline from last year’s 8.02% but still outperforming global and regional averages.

Despite positive trends in public investment disbursement and FDI implementation, challenges persist in the corporate bond and real estate markets. The economy’s failure to meet the 6.5% growth target may impact the 2030 development roadmap. Internal factors, including regulatory complexities and slow administrative reforms, contribute to these challenges. To overcome economic headwinds, CIEM emphasizes the need for strategic policies, harnessing Fourth Industrial Revolution achievements, and addressing institutional issues. UNDP Representative Ramla Khalidi advocates flexible solutions, innovation, and energy transition for a robust recovery in 2024, unlocking new opportunities and ensuring sustained development.

Source: bnews.vn

1. 4. Continue to remove obstacles to restore real estate, bonds, and clear resources

In the regular government press conference held on December 6th in Hanoi, Vietnam, Minister, and Head of the Government Office Tran Van Son stated that various levels and sectors should continue efficiently addressing existing issues to restore and stabilize markets, particularly real estate, corporate bonds, stocks, and labor.

Emphasizing the need for transparency, the government aims to seize the opportunity to propel economic growth in 2024. The economic and social situation in November 2023 showed positive trends, with stable macroeconomic fundamentals, controlled inflation, increased exports, and stable financial markets. However, challenges persist, such as global inflationary pressures, supply chain disruptions, and obstacles in real estate and corporate bonds. 

Minister Tran Van Son highlighted the importance of active and flexible monetary policies, fiscal coordination, and overcoming administrative hurdles for sustained economic growth.

Source: baotintuc.vn

1. 5. It’s difficult for the land fever to return in the next 3 years
   

The passage discusses recent changes in Vietnam’s real estate laws, particularly amendments to the Business Real Estate Law. Stricter regulations on urban land subdivisions, increased developer responsibilities, and standardized transaction contracts aim to enhance transparency in the market, according to legal expert Le Van Hoi. Đinh Minh Tuan, Director of the Southern region at Batdongsan.com.vn, acknowledges the impact of these changes, foreseeing short-term difficulties in land fever but anticipating its return in the long run.

Experts also predict a potential condominium boom due to the absence of ownership duration regulations in the Housing Law. Vu Cuong Quyet, CEO of Dat Xanh Mien Bac, suggests that removing ownership duration regulations could positively influence buyer sentiment, making the market more dynamic.

Tran Minh, CEO of a real estate enterprise in Hanoi, believes a new land fever is unlikely in the short term. Buyers, more informed about speculative risks, prioritize investments with tangible value, and the overall market remains weak due to slow business recovery. In conclusion, a short-term return of land fever is deemed improbable, given buyer awareness, recent market experiences, and local government control over land management.

Source: cafef.vn

1. 6. Addressing Challenges for Stalled Housing Projects

In Decision 6017/2023/QD-UBND, the People’s Committee of Hanoi addresses housing challenges by adding 12 commercial and 3 social housing projects for 2021-2025.

This aims to expand homeownership opportunities, especially for low-income residents. However, Hanoi faces a housing supply shortage, with only 27.6% of the 1.25 million sqm social housing target completed by mid-2023. Global factors and internal issues contribute to this imbalance. The existing legal framework poses constraints, hindering effective urban planning and housing development. Despite challenges, positive strides have been made in previous programs, exceeding targets. Decision 6017/2023/QD-UBND underscores the city’s commitment to addressing housing needs, adding projects to achieve basic goals and enhance housing accessibility.

Source: cafef.vn

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