Expectations that the housing market will be 'unstuck' by the end of 2024, early 2025

DNVN - Sharing with Vietnam Business Magazine, Mr. Nguyen Van Dinh - Chairman of the Vietnam Association of Real Estate Brokers (VARS) - said that the new laws related to real estate and housing have just come into effect, so there is a time lag for them to be fully absorbed. He expects the housing market to see improvements by the end of 2024 or the beginning of 2025.

According to Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Real Estate Brokers (VARS), the real estate market began to show quite positive signs in the first nine months of 2024. Real estate projects that were previously hesitant to enter the market are now starting to be launched, increasing the supply.

However, the current housing market shows a weak supply and poor quality. Products in the low-end and affordable segments are almost nonexistent on the market. While the government has created many mechanisms to promote social housing, not many products meet the required standards for market entry.

“We believe this is the period when the amended Real Estate Business Law of 2023, the amended Housing Law of 2023, and the amended Land Law of 2024 come into effect. New laws always have a time lag; the absorption of laws takes time, so directly addressing the difficulties and obstacles of the institutional framework, especially the institutional framework for social housing development, will have to wait a while longer.”

"I hope that in late 2024 and early 2025, many projects will have their difficulties resolved, and then the supply will increase," Mr. Dinh said.

Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Real Estate Brokers (VARS), believes that the implementation of the new legal framework for the housing market needs to be accelerated.

The VARS chairman expressed concern that the supply of low-end (mid-range and affordable) housing would remain insufficient if local authorities did not take more active action, making it difficult to stimulate demand. If that happens, the supply in this segment will continue to be lacking in the market.

"This is not a good sign for the housing market, as there is a significant polarization between two groups: high-end commercial housing and social housing. Although social housing is supported and promoted by the State, it is difficult to find a market, leading to shortages and imbalances," Mr. Dinh emphasized.

The VARS chairman recommended that future market regulation policies should promote the affordable housing segment more. The instability in the housing market, such as the high prices in the affordable segment recently, is due to very weak supply and strong demand. When supply improves and increases, it will help balance the market and regulate prices more reasonably.

"The market needs to be regulated by increasing supply when there is a supply shortage, and increasing supply in specific segments where there is a shortage. The implementation of the new legal framework and the dissemination of new regulations also need to be accelerated," Mr. Dinh recommended.

Ha Anh

Source: https://doanhnghiepvn.vn/kinh-te/bat-dong-san/ky-vong-thi-truong-nha-o-duoc-go-kho-vao-cuoi-nam-2024-dau-2025/20241010061255283