According to the Association of Realtors (VARS), the real estate market, although not strong enough to “tumble...
According to the Association of Realtors (VARS), the real estate market, although not strong enough to “tumble”, has partly escaped the state of “loss of brakes”
The stock exchange showed signs of recovery. Photo courtesy of Thuc Vy.
A representative of VARS' Market Research and Real Estate Investment Promotion Consultancy Department said that in the overall market picture, some positive points appeared. At the same time, real estate companies have also shown signs of improvement. This is reflected in the increase in the number of real estate businesses resuming operations. Generally, in the first 3 quarters of 2023, the number of businesses established in the real estate field will be multiplied by 3.5 compared to the number of businesses dissolved, with about 3,000 businesses.
In particular, when information about hundreds of projects has restarted, it creates confidence and strength for the market and participants, helping the market next month better than the previous month, the next quarter better than the previous quarter. The volume of transactions in the market has gradually increased. While the second quarter of 2023 recorded 3,700 transactions, an increase of 1,000 transactions from 2,700 in the first quarter, in the third quarter, the market recorded nearly 6,000 transactions. 1.5 times more than in the second quarter and more than 2 times more than in the first quarter of 2023.
According to Mr. Tran Van Binh, Vice President of the Secretary General of VARS, in addition to removing legal bottlenecks, it is necessary to have capital for the real estate market to return to a normal state. Mr. Binh also said that the real estate market in the fourth quarter of 2023 will be a springboard for transformation in 2024.
On another note, Le Xuan Nghia, a member of the National Advisory Council on Monetary and Financial Policy, said credit had been frozen due to a “crisis of confidence” between banks and businesses. Companies need capital, but cannot prove their ability to repay their debts and have no guarantees. “The collateral requirement depends more or less on the risk appetite of each bank, the characteristics of each project, the reputation of each client. According to the banks, real estate companies still want the banks to trust them, but many companies themselves have not been fair, have not created trust with the banks,” Nghia said.
Speaking on this issue, Dr Vo Tri Thanh, director of the Institute for Research on Brand Strategy and Competition, said it was necessary to understand that the relationship between commercial banks and companies is symbiotic. However, the fact that banks cannot lend when there are no guarantees is due to substandard conditions. The law must be approved so that the bank can “reduce money”.
Via Cafebiz