Creating momentum for a new development cycle of the real estate market

The real estate market picture in the coming time is expected to change in a more difficult direction, as customers and consumers are increasingly demanding about product quality as well as project legality.

Mr. Nguyen Nhat Truong.

2024 lays the foundation for a new development cycle.

- Mr. Nguyen Nhat Truong, Director of Sales - Marketing and Customer Service, Seaholdings

In the coming time, the real estate market picture will change in a more difficult direction, when the requirements of customers and consumers are increasingly strict on product quality as well as project legality. With easy access, search, and verification of information, customers have higher requirements in all aspects, such as legality, investor reputation, product aesthetics and quality, payment methods, etc. This requires investors to be sensitive to grasp, research, and develop products that are more suitable to the tastes of home buyers. Therefore, 2024 will lay the foundation for a new development cycle.

However, we cannot expect a boost at this time, because the market will gradually consolidate confidence and a solid foundation, creating momentum for a new development cycle, when the economy recovers and management policies are absorbed. At that time, affordable housing will be the real estate segment that enters the first recovery phase, because the demand for housing is very high.

Mrs. Meir Tlebalde.

Hope Vietnam promotes infrastructure development and upgrades urban master planning.

- Ms. Meir Tlebalde, General Director of Sunwah Kiri Consulting Vietnam

Foreign investors see Vietnam’s recent land law reforms as a step forward in improving the real estate investment environment. These reforms demonstrate the government ’s commitment to creating a favorable environment for real estate development. This is certainly encouraging.

However, foreign investment continues to face significant challenges due to the unpredictable nature of the licensing process. This unpredictability is evident before the completion of the master plan and is further compounded by the complexity of land compensation. These barriers delay project initiation and affect investor confidence in the feasibility of project completion.

Additionally, the common feedback we often receive from foreign-invested companies is the desire for Vietnam to promote infrastructure development and upgrade urban master planning.

Furthermore, securing project finance remains a challenging task for both domestic and foreign investors. Investors expect the Vietnamese Government to prioritize the establishment of consistent, market-oriented regulations to create a more stable foundation for project financing. Doing so will boost investor confidence and contribute to the long-term and sustainable growth of the Vietnamese real estate market.

Mrs. Dinh Nhat Hanh.

Good signal for strong market recovery.

- Ms. Dinh Nhat Hanh, General Director of Khai Hoan Land Group

I agree with the experts' assessment that the real estate market has overcome the difficult period. This is a good signal for the market to recover strongly from 2024. Khai Hoan Land aims to recruit 10,000 sales staff to supplement and build a strong human resource team.

In 2024, we will have 10 key projects as a developer and exclusive distributor. To achieve business goals, it is understandable to increase the sales force. However, 10,000 sales staff is not a small number.

Mr. Andy Han Suk Jung.

FDI capital into Vietnam will continue to remain high in the coming time.

- Mr. Andy Han Suk Jung, CEO of Filmore Real Estate Development Joint Stock Company

Registered foreign direct investment (FDI) in Vietnam in 2023 will reach nearly 36.61 billion USD, up 32.1% compared to 2022. Of which, the processing and manufacturing sector will take the highest position, accounting for 64.2% of total FDI capital, while the real estate sector will firmly hold the second position, with more than 12.7%. The outstanding activity in the real estate sector is the industrial real estate segment.

My expectation is that FDI inflows into Vietnam will continue to remain high in the coming time. Therefore, the strategy of developing more green and smart industrial parks will contribute to sustainable growth, ensuring stable FDI flows.

Government initiatives emphasize administrative reform, promoting public-private partnerships and attracting foreign capital as key factors in creating an increasingly favorable investment environment.

Mr. Neil MacGregor.

Real estate transactions will increase significantly in the coming time.

- Mr. Neil MacGregor, CEO of Savills Vietnam

Hopefully, the new Land Law that has been passed will boost the number of transactions significantly in the coming time. Foreign investors are waiting for the new legal documents to come into effect. I believe that when the Land Law (amended) comes into effect, investor sentiment towards the real estate sector will change dramatically. We will see new commitments, new projects announced. That will really be a game changer.

Industrial real estate currently dominates FDI inflows into Vietnam, but many investors are also looking to invest in office buildings and hotels in cities. The resort real estate sector will need more time to fully recover.

Mr. Le Nhu Thach.

Land fund ready for project implementation.

- Mr. Le Nhu Thach, Chairman of the Board of Directors of Bcons Construction Investment Joint Stock Company

2023 is a difficult time, considered the “bottom” of the market. However, Bcons still implements the construction of a series of new projects and hands over previously constructed projects to customers.

To meet the development plan in the coming time, Bcons has prepared a land fund with a total area of 35 hectares to implement projects from now until 2030. In addition, the development orientation of the enterprise is to become a multi-industry corporation. In addition to the construction and real estate investment sectors, Bcons will invest in development in the fields of education , services, and logistics.

With such an ambitious plan, the company needs a lot of resources. Therefore, Bcons has filed documents to prepare for an initial public offering (IPO). Only through an IPO can there be a chance to attract investment capital. If there are no changes, in 2024, Bcons will be listed on the HoSE.

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