The real estate market is favorable to speculators.

This is the opinion of Prof. Dr. Hoang Van Cuong, Member of the National Assembly 's Finance and Budget Committee at the Workshop "Vietnam's real estate market in the context of amending the Law on Land, Housing and Real Estate Business".

The market is seriously lacking affordable housing.

According to Mr. Hoang Van Cuong, the current market demand is very high, especially in Hanoi , many projects are sold out as soon as they are launched. However, this is not necessarily a good sign.

“In recent times, legal problems have caused a decrease in supply. In addition, project implementation costs are increasing, and access to clean land is also more difficult. Currently, the supply is mostly projects that have been started before,” said Mr. Cuong.

According to the member of the National Assembly's Finance and Budget Committee, the situation of "skyrocketing" real estate prices in the context of decreasing inventory but no increase in supply will cause the market to become unbalanced. This will be the time when speculators benefit the most, instead of real home buyers.

Speaking at the workshop, Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), said that the escalation of real estate prices simply comes from the law of supply and demand. If we want to "cool down" the selling price, the factor that needs to be affected is the supply, instead of administrative intervention.

“The market is currently divided into two segments. One is the high-end segment serving people with good financial conditions and investors. The other is the social housing segment. It is worth mentioning that affordable products, the segment in between the two above segments, are almost non-existent,” Mr. Dinh emphasized.

The head of VARS said that affordable projects are the desire of the majority of people and this is the important missing piece in the overall picture of the market. The sudden "extinction" of the segment that should have been the most popular is an anomaly. Policy makers need to have specific regulations to promote this segment, from which the market can truly stabilize.

Discussing further the impact of the three new real estate laws, Mr. Dinh said that the new policy needs more time to penetrate the market. With a very shared perspective, the Chairman of VARS said that implementing about 300 laws in a short period of time is not easy. In fact, local authorities and businesses have encountered certain problems when implementing the new regulations.

“However, this is not a difficult problem. We will do it and research it at the same time, and fix it wherever we encounter it. Overall, businesses are still very excited about the birth of the three new laws,” Mr. Dinh shared.

Prospects of Vietnam real estate market

Looking to the future of the Vietnamese real estate market, Mr. Nguyen Quang Thuan, Chairman of Fiin Group JSC, said that in the next 1-3 years, the real estate industry needs to handle the following 2 issues to truly make a breakthrough.

Firstly, it is the legal aspect. In which, the authorities need to prioritize handling projects that only have problems with small details, creating conditions for investors to complete and open for sale.

“The second is about the credit environment and interest rates. Sooner or later we will have to open a non-bank capital channel. Currently, this step is not being implemented well and is not diversified in form. In addition to the above two ideas, agencies also need to implement a land database system and real estate price index. However, that will be a long-term project,” Mr. Thuan commented.

Regarding the story of real estate price reduction, the leader of Fiin Group supports the solution to stimulate the market. However, if relying only on using budget capital, Mr. Thuan is afraid that it will not be enough.

“The three entities including the government, banks and investors need to join hands. The government only commits to providing legal support and clean land sources if businesses carry out affordable projects. When the legal process is complete, banks will commit to lending to businesses at preferential interest rates or even disbursing directly to home buyers in the project,” Mr. Thuan suggested.

In an optimistic moment, the Chairman of Fiin Group enthusiastically said that if the real estate market develops stably and healthily, public investment is promoted, FDI capital continuously arrives, the stock market is upgraded, etc., Vietnam's economic growth could reach double digits, up to 10% in the next 3 years.

“At that time, Vietnam will be the new star of the world,” Mr. Thuan shared in a very positive manner. Many speakers and guests attending the conference responded with thunderous applause.

Despite many challenges ahead, Mr. Hoang Van Cuong is also optimistic that the future of the real estate market is showing promising signs. This assessment is driven by two factors. First is the opening up of legal issues, thanks to the presence of three new real estate laws. Next is the positive growth momentum of the economy in the "era of national growth".

“When the economy grows, real estate will thrive. This has been proven in market cycles. With GDP growth expectations in the period 2025 - 2030, we can be confident that the real estate market will continue to grow,” Mr. Cuong commented.

Source: https://baodautu.vn/batdongsan/thi-truong-bat-dong-san-dang-co-loi-cho-nguoi-dau-co-d227106.html