[E] What are the expectations for real estate in 2024: Sifting sand to find gold?

In an environment of deep profit decline and high project legal risks, Mr. Nguyen Quang Thuan - Chairman of FiinGroup assessed that capital channels for real estate are facing great challenges.

Firstly, bank credit capital is controlled for credit risk, has high credit risk and gives rise to high project legal risk stories.

Second, the corporate bond channel is involved in high debt default events, causing low investor confidence in corporate bond products. Foreign capital/FDI in real estate is affected by the high international interest rate environment.

Third, the source of money from down payment buyers is narrowed due to high real estate prices and the income of home buyers is also affected in the difficult economic context. Meanwhile, the interest rate of home purchase credit has tended to decrease recently but there are still risks from the legal and floating mechanism.

Finally, capital from business cooperation must face the State Bank's policy of credit risk control regarding the use of borrowing purposes, capital contribution restrictions and business cooperation according to Circulars. At the same time, Decree 65 also limits the purpose of bond issuance.

Accordingly, the Chairman of FiinGroup said that, in the context of the real estate market facing many difficulties, the execution and sales capabilities of real estate developers were significantly affected, as shown by the sharp decrease in the ratio of prepaid revenue/inventory in the first 9 months of 2023.

Since then, the financial health and liquidity of real estate businesses have also weakened as the pressure to repay debt and loan principal is large while cash flow from business operations is not enough to meet the demand.

Source: https://www.nguoiduatin.vn/e-ky-vong-nao-cho-bat-dong-san-2024-dai-cat-tim-vang-a648981.html