Real estate market is fueled, entering a new game

New mechanism facilitates faster market development

Speaking on the sidelines of the law guidance conference, Mr. Nguyen Manh Khoi - Deputy Director of the Department of Housing and Real Estate Market Management ( Ministry of Construction ) - emphasized that up to now, the system of legal documents detailing the Housing Law and the Real Estate Business Law has been basically complete. The Government has issued 5 decrees. The Ministry of Construction has issued 2 circulars. The Prime Minister has issued a decision.

The representative of the Ministry of Construction said that real estate business activities have important content that is strongly influenced by policy mechanisms. Many policy mechanisms are stipulated in the law, some are stipulated in the decree, some are implemented according to local conditions for consideration and decision.

Mr. Khoi acknowledged that in recent times, the whole country as well as Ho Chi Minh City have encountered difficulties and obstacles in the process of implementing and investing in the construction of commercial and social housing. If the legal system is not amended and supplemented to handle the problem, it will continue to face difficulties. After the National Assembly and the Government issued policies and mechanisms, the above situation has been basically resolved.

He stated that the first is the mechanism for investment in commercial housing construction, clearly regulating investors, land funds, etc. In particular, for the first time, regulations on project implementation procedures are provided as a basis for localities, including Ho Chi Minh City, to determine the process, avoiding the case where each locality follows a different procedure.

Second is the regulation on renovating old apartment buildings. Ho Chi Minh City and Hanoi have had many apartment buildings in the past, but despite efforts, the renovation is slow. The recently passed Housing Law has many regulations related to this, such as land fund planning, methods of selecting investors, and regulations that the State must take the lead in order to implement the fastest.

New regulations on land use fee exemption for social housing, resettlement, and old apartments will also encourage businesses to participate. The process of renovating old apartments is also included in the Housing Law for implementation.

Regarding social housing, Mr. Khoi said that there are many new points such as exemption of land use fees but investors do not have to go through procedures to determine land prices, procedures for exemption of land use fees to avoid cumbersome administrative procedures. The regulations also have many incentive mechanisms for investors, and localities are assigned to have their own incentive mechanisms based on the law.

"I think there are many new mechanisms that create conditions for the real estate market to develop faster, especially with regulations on market management to help develop more stably. Localities, including Ho Chi Minh City, if fully implementing regulations, will certainly be able to resolve many projects, including projects that have been stuck for a long time, or projects that are being implemented with many problems," emphasized a representative of the Ministry of Construction.

The real estate market is predicted to have passed the U-shaped bottom (Photo: Nam Anh).

The market is gradually moving into the "attack" phase.

Experts expect the real estate market to enter a new context, a new game, when important laws such as the Housing Law, the Real Estate Business Law and the Land Law officially take effect. All parties have made adjustments and participated in the market with a new mindset and new actions.

At a recent event, Mr. Luu Quang Tien - Deputy Director of the Dat Xanh Services Institute for Economic - Financial - Real Estate Research (DXS-FERI) - said that after a cautious defensive phase, the market has gradually moved to an offensive phase with many notable points. The confidence of home buyers and investors continues to improve thanks to more positive signals from the market and the Government's support policies.

He affirmed that the market has passed the U-shaped bottom, has grown again and continues to show signs of slight increase until the end of this year, aiming for more positive development from 2025, and is expected to recover in 2026.

This expert stated that in the last 3 months of this year, the Government will continue to complete the legal framework and guiding documents to soon put real estate-related laws into practice. At the same time, the process of receiving opinions from all parties will gradually move to the implementation, supervision, and coordination phase; thereby creating a more open investment and business environment.

Sharing the same view, Mr. Vo Hong Thang - Deputy General Director of DKRA Vietnam Company - forecasted that in the coming time, with more positive macroeconomic conditions and attractive lending interest rates, the market is expected to recover better. The market will continue to recover from the end of 2023, especially in the affordable apartment and housing segment. Land in areas with full amenities, clear legal status and residential land will still be bright spots.

According to Mr. Thang, since August 1, the market has not had many projects implemented because it needs more time to absorb legal changes. If these issues are resolved, many projects will be able to access capital and the market will be more vibrant, helping supply and demand meet. It is forecasted that by the end of 2025, Ho Chi Minh City and neighboring provinces will enter a new development cycle, with expectations of more sustainable and vibrant growth.

Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association (HoREA) - also said that the Ho Chi Minh City real estate market has escaped the most difficult bottom in the first quarter of 2023. From the second quarter of 2023, the market has begun to gradually recover and this trend will not be reversed.

Source: https://dantri.com.vn/bat-dong-san/thi-truong-bat-dong-san-duoc-tiep-suc-buoc-vao-cuoc-choi-moi-20241012061727148.htm