Domestic real estate market boom unlikely in 2023

Vietnam's real estate market is unlikely to boom next year, according to experts.
Domestic real estate market boom unlikely in 2023 ảnh 1The property market expects more advantages from new regulations effective to recover next year, such as decrees No 44/2022/ND-CP and 42/2022/ND-CP. (Photo: tienphong.vn)
Hanoi (VNS/VNA) - Vietnam's real estate market isunlikely to boom next year, according to experts.

TranKim Chung, former deputy director of the Central Institute for EconomicManagement, said that in the context that there is no sudden change in capitalsource and new policies will not be approved until the end of 2023, the marketnext year could continue to adjust towards a more substantive direction.

Themarket expects to have new impetus from the promulgation and amendment of thethree laws relating to the property market, namely the Land Law, the Law onHousing, and the Law on Real Estate Business. 

Chungsaid the market boomed in 2019-2021, so a large part of finance is needed in2022 and 2023 to pay for the transactions in those two years. But now thefinancial sources have reduced beyond expectations.

Inaddition, some businesses have assets frozen due to legal issues, while someother enterprises are having difficulty in finance.

Changesin credit policies relating to interest rates and exchange rates will affectthe real estate market, Chung said.

SuNgoc Khuong, Senior Director of the Investment Consulting Division SavillsVietnam, said that Vietnam's economy and finance will also besignificantly affected by the fluctuations in the world, such as inflation, exchangerates, scarcity of petroleum and socio-political instability in many countries.

Thereal estate market suffers from these economic impacts. Therefore, Khuongpredicted that in 2023, the property market will change quite cautiously.

Formarket liquidity, the residential segment will maintain stable liquidity.However, the limited supply and absence of affordable products will affectliquidity. 

Segmentssuch as industrial and office real estate are still doing well, and businesseswill continue to need to expand, he said.

Forfinancial issues, according to Khuong, unfinished projects need to have capitaldisbursed to continue the construction process, creating new supply for themarket.

Inaddition, investors need additional capital from foreign investment, investmentfunds or joint ventures to solve complex financial problems.

“Itis necessary to have legal support for enterprises developing property projectsfor a strong recovery in the domestic market. We hope that in the coming time,these bottlenecks will be removed soon to create a healthier and morefavourable business environment for investors as well as solve the problem ofhousing supply for the majority of people. That helps them own a morereasonably priced house," he said.

Accordingto the latest forecast from the Finance – Economics – Real Estate Institute ofDat Xanh Services (FERI), the market supply will still be in severe shortage inthe short term due to the continued tightening of real estate management.Meanwhile, social housing projects have yet to be implemented. With a cautiousmentality, customers have turned to keeping money, leading to a frozen market.

Moreover, the increase in interest rates of loans and limited credit"room" make it difficult for even genuine home buyers to accessloans.

Theproperty market expects more advantages from new regulations effective thisyear to recover next year. They include decrees No 44/2022/ND-CP ondeveloping a database about the real estate market, 42/2022/ND-CP onthe provision of online information and  publicservices by the State agencies in the cyber environment,Decree 65/2022/ND-CP on the bond market, and new policies on land underResolution 18-NQ/TW./.

VNA

See more

VinFast showcases its complete range of electric vehicles at the BIMS 2024 exhibition. (Photo: VNA)

Vietnamese products rise from villages to global markets

Many Vietnamese brands like VinFast, Hoa Phat, Viettel, Vinamilk, and GrowMax have steadily increased their market share at home, expanded their export markets, and built production and value chains, all while contributing to the country’s economic growth.

At the forum (Photo: baoquocte.vn)

Vietnam – a land of opportunities for Nordic firms

Ole Linnet Juul, Senior Chief Advisor of the Confederation of Danish Industry, commended Vietnam’s recent strides, particularly in institutional reforms, technological advancements, innovation, and digital transformation.

Apartments building in HCM City. 2025 is predicted to be a crucial foundation year for the real estate sector in HCM City. (Photo baoxaydung.com.vn)

HCM City real-estate market predicted to recover this year

2025 will serve as a crucial foundation year for the real estate sector in Ho Chi Minh City, marking the path towards a full recovery by 2026 after facing challenges caused by COVID-19 and economic recession, experts predicted.

The Commission for Management of State Capital at Enterprises transfers the rights and responsibilities of the agency representing state capital ownership to the Ministry of Finance. (Photo: VNA)

State capital ownership rights transferred to Ministry of Finance

After merging with the Ministry of Planning and Investment and receiving 18 state-owned groups and corporations from the Commission for Management of State Capital at Enterprises (CMSC), the Ministry of Finance acts as the 'backbone' of the economy, managing all financial resources from public investment and resources from these groups and corporations, to foreign loans.

At the ceremony on February 28 to officially transfer MobiFone Telecommunications Corporation from the commission to the Ministry of Public Security. (Photo: VNA)

State-owned MobiFone now under Ministry of Public Security

MobiFone's profit before tax in 2024 was estimated at over 2 trillion VND (78.23 million USD), exceeding its annual target by 20.6%. The corporation's digital services sector has witnessed high growth rates across many products and services, including MobiFone Meet (1,050%), Cloud (312%), mobiAgri (49%), and MobiFone Invoice (58%).

Investors monitor the development of the stock market at MB Securities JSC (Photo: VNA)

Vietnam pushes to elevate stock market

Vietnam will create favourable conditions for the stock market to develop more breakthrough and innovative products, enhancing the quality of market offerings and attracting more investors.