Will real estate businesses begin a new 'race'?

According to the Vietnam Association of Real Estate Brokers (VARS), when the new laws come into effect on August 1st, the "wait-and-see" mentality will be lifted. Project development companies will begin a new race to resolve bottlenecks in collaboration with state management agencies.

According to VARS, the effective date of August 1st for the Land Law 2024, the Housing Law 2023, the Real Estate Business Law 2023, and Clause 2, Article 209 of the Law on Credit Institutions will have a positive impact, contributing to the recovery and development of the real estate market.

Once the laws come into effect, the "wait-and-see" mentality will be dispelled. Project development companies will begin a race to resolve bottlenecks alongside state management agencies. Investors will feel more confident in launching their projects.

Investors' confidence was boosted, driving the flow of maturing funds from banks into real estate. Brokers and brokerage service businesses actively improved their capabilities, recruited staff, and provided training to meet new regulations.

Investors are gaining confidence, driving maturing funds from banks into real estate.

VARS believes that, while waiting for the new laws to take effect, the real estate market will continue to recover slowly and sustainably, with gradually improving results. By the end of the year, the recovery process of the real estate market will show clear progress. The recovery results will continue to differentiate by segment and region, but with a more even distribution.

Regarding the housing segment, VARS forecasts that supply in the second half of 2024 will continue to improve, estimated to increase by approximately 20% compared to the first six months of 2024. Demand for residential housing will continue to remain high, along with investment demand recovering by about 30% compared to the beginning of the year and focusing on new markets.

Housing transactions are expected to increase by approximately 20% compared to the first half of the year, as supply is projected to only "surge" towards the end of the year. Liquidity in the secondary market is also showing significant improvement as efforts by state management agencies and real estate businesses yield better results.

Along with that, transactions and selling prices of villas/townhouses and terraced houses have improved across the board, especially in the secondary market, thanks to the previous recovery and investors' expectations of higher returns.

Land prices have recovered from their "bottom" and are gradually becoming the "king of investment channels." However, investors are only "hunting" for auctioned land, subdivided plots, in areas with complete infrastructure, and where prices are not yet too high.

The social housing segment also faces the opportunity for a "reversal" as new regulations aimed at removing difficulties and obstacles are effectively implemented. The industrial real estate segment continues to grow with the acquisition of land for the development of industrial parks by corporations.

Sustainable industrial park models will be promoted to develop more vigorously and rapidly, contributing to the development of a green and circular economy as advocated by the Party and the State. At the same time, the supply of tourism and resort real estate will continue to improve with more businesses "bravely" launching new projects. However, the number will not be significant because the overall real estate market has not yet truly recovered.

In the future, when the new laws come into effect, the land price list will be higher. This means higher land use fees, higher compensation for citizens, and greater pressure on businesses regarding their available capital.

With this new playing field, the market will only have room for developers who operate professionally, possess large land reserves, have financial resources, and are capable.

Hoai Anh

Source: https://doanhnghiepvn.vn/kinh-te/bat-dong-san/doanh-nghiep-bat-dong-san-se-bat-dau-cuoc-dua-moi/20240727082615813