Factors to revive the real estate market
According to Journalist & Public Commentary, information from Vietnam Report, Capital source - Land fund - Policy are the 3 pillars affecting the recovery of the real estate market. In particular, adequate access to capital allows businesses to finance construction projects, thereby directly affecting the competitiveness and development of businesses in the market.
Additionally, capital facilitates innovation and technological advancement in the industry, allowing companies to adopt modern construction techniques and sustainable practices, which can improve efficiency and attract environmentally conscious consumers. However, because real estate is considered a high-risk field, accessing capital for real estate businesses is not easy.
To cope with cash flow shortages, borrowing from commercial banks is still the top choice with 52,8% of businesses choosing it. Bond issuance options witnessed a sharp decline in February 2, and are now showing signs of warming. In addition, solutions to reduce operating costs such as: optimizing operations, streamlining human resources, and salary structure to pay employees also tend to increase.
The second factor is the land fund, the basis for real estate projects to be formed, planned and developed. Currently, one of the bottlenecks that businesses are facing is the requirement that projects must have residential land, which is a difficult condition to implement and limits the formation of large-scale projects.
Capital source - Land fund - Policy are the 3 pillars affecting the recovery of the real estate market in 2024. Illustration from the internet
Accordingly, the National Assembly has allowed the Government to develop a Project to submit to the National Assembly for promulgation of a Resolution on piloting the implementation of commercial housing projects through agreements on receiving land use rights or having land use rights for with other land will allow investors to "agree on receiving land use rights for residential land and other land or other land that is not residential land", or will remove problems in cases where investors The investor "has land use rights other than residential land" to soon implement the project.
Finally, there are policies and legal corridors that shape the real estate market. If in the past, the real estate industry was entangled by a matrix of overlapping laws, then recent policy reform efforts are considered a strong impulse to revive the market after a period of quietness.
Accordingly, the amended Land Law passed by the National Assembly on January 18, 1 removed the "land price framework" and stipulated "land price list" in Article 2024. This regulation is assessed to speed up the land collection process. Land recovery and site clearance when compensation value is calculated based on market mechanisms; Land transfer transactions are taxed based on the new "land price list" which will bring greater revenue to the budget.
In addition, a number of other Laws have also been amended such as the amended Law on Real Estate Business (passed on November 28, 11), the amended Law on Housing (passed on November 2023, 27), and the Law on Housing (passed on November 11, 2023). The revised credit institutions (adopted on January 18, 01) have initially had a positive impact on the psychology of subjects, creating momentum for the real estate market to recover soon.
When the amended laws officially take effect, it is forecast that the real estate market will develop in a safer, healthier, and more sustainable direction. In particular, the regulations aimed at removing difficulties for investors and social housing buyers in the new laws, when officially taking effect, will attract businesses to participate in development and promote housing supply. society.
Differentiation between market segments
According to Marketing World, According to information from Vietnam Report, the real estate market in 2024 has more positive signals than in 2023 but there will be differentiation between market segments.
Specifically, segments that serve industrial development needs, real housing needs, and are suitable for people's financial conditions will recover first; The housing, luxury apartment, and resort real estate segments will recover more slowly.
In particular, low-cost and mid-range residential real estate and apartments are the segment where demand exceeds supply in the market. Policies to unwind and promote the market will be the conditions to increase supply and bring the market bustling again.
For office rental and industrial park real estate, many favorable factors from geographical location, public investment in infrastructure, strong FDI capital flow into Vietnam... will also help this segment. Attractive again.
In particular, the industrial park real estate segment leads the recovery trend with 34,5% of businesses assessing there are many signs of improvement in the first half of 2024.
Particularly, residential real estate, luxury apartments and resort real estate are considered less optimistic. The reason is that supply is in excess after a period of hot growth, people are not too interested in investing in these segments.
The real estate market is still in a state of shortage of affordable housing products, which is one of the reasons why the market is difficult to develop sustainably. Therefore, experts say it is necessary to look at actual conditions and diversify products, not just focusing on developing high-end housing.
Dao Vu (Th)
