Kinhtedothi - Vietnam's real estate market is entering 2024 with more positive movements than negatives. Accor...
Kinhtedothi - Vietnam's real estate market is entering 2024 with more positive movements than negatives. Accordingly, the supply and demand are forecasted to improve significantly, based on state policies that have been "absorbed" and the actual business operations of enterprises.
Customers researching information about a real estate project in Hanoi. Photo: Cong Hung
Eroded Confidence
Vietnam's real estate market was officially established in 1993, after the National Assembly passed the Land Law and ordinances on housing, laying the initial legal basis for land use rights and homeownership. Since then, the real estate market has gone through many periods of ups and downs closely linked to the urbanization process, along with the macroeconomic impacts of the world economy.
However, over the past 30 years, the market has never experienced a situation where the confidence of the people, investors, has been eroded, and the State has had to take strong measures to prosecute and imprison a series of "real estate giants" as in recent times.
It is undeniable that the prolonged Covid-19 pandemic for more than 2 years has paralyzed the production and business activities of the real estate market, even causing them to "freeze"; or legal regulations have not kept pace with the development reality, causing thousands of real estate projects to fall into a state of "limbo".
2024 will mark a milestone for a new development cycle, the real estate market will stabilize and change in a more positive direction. Recently, the market has undergone a strong purification process, with companies with "health" and the ability to adapt to difficulties continuing to exist and develop. In particular, changes in draft laws, although not yet applied, will be a good signal to rebuild confidence for market participants.
Vice President of the Vietnam Real Estate Association, TS Nguyen Van Dinh
Institutional reform is the driving force for acceleration.
According to TS Nguyen Si Dung - former Vice Chairman of the Office of the National Assembly, the real estate market currently contributes about 20% of GDP to Vietnam's economy, which is a very high ratio, and an important source of revenue for the state budget. The real estate market also creates employment for millions of people, through promoting financial investment and stimulating hundreds of related industries. Especially, when the real estate market flourishes, it will play an important role in improving the living conditions of the people. Therefore, ensuring that the real estate market develops in a healthy, sustainable manner is a strategic task in the process of socio-economic development.
"To overcome the current difficulties in the market, the first issue that needs to be addressed is institutional reform. The state needs to intervene more strongly in restructuring products and supply sources to match actual demand. In particular, the market can only continue to develop when trust is restored, and to achieve that, transparency must be ensured," said TS Nguyen Si Dung.
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