Realty market expected to recover in 2023

Capital shortages, legal bottlenecks and in consistent regulations have plagued the property sector as of late. Ill-advised lawmaking and cumbersome administrative procedures have combined to create an environment in which real estate rules are ineffectively enforced and loopholes are easily taken advantage of, according to the association.

According to association president Le Hoang Chau, 70% of the difficulties facing real estate projects spring from legal bottlenecks.

But he said this would no longer be the case when amended laws on land, real estate trading and housing are adopted in late 2023. The new laws will become pillars of stability for market, he said.

At a recent seminar discussing 2023 property market forecasts, Nguyen Van Dinh, vice chairman of the Vietnam Real Estate Association, said the future of real estate in Vietnam was looking brighter as the government had recently instructed relevant ministries and lower authorities to remove legal obstacles and create smoother cash flow in the sector.

“Real estate businesses as well as other related groups are actively restructuring products, prices and payment terms to make them more suitable and convenient for customers,” Dinh said.

Nguyen Chi Thanh, vice chairman of the Vietnam Association of Realtors, said the market would experience a boost in 2023 as major investors prioritize high liquidity projects and launch social housing projects for those in need.

Phan Duc Hieu, standing member of the National Assembly’s Economic Committee, also said that alongside social housing projects, middle-income property developments and industrial real estate would see booms as well while localities follow through on their socioeconomic development plans.

Economist Can Van Luc stated that the recovery of the local real estate market next year would be grounded in the fact that countries around the world would no longer be raising interest rates as much, which would help alleviate pressure on foreign exchange rates.

Neil MacGregor, managing director of Savills Vietnam, has said the potential for growth in the Vietnamese real estate market could be high over the next few years. He cited the country’s stable economic foundation, rapid urbanization and shifts in production from China to Vietnam as major contributors to this potential.

Foreign investors are keeping their eyes on segments of the Vietnamese property market, he said, adding that projects next year would be more suitable to buyers’ budgets.