On the morning of March 15, the Vietnam Real Estate Association directed the organization of the annual event "The 3th Spring Real Estate Forum and Ceremony to Honor Leading Real Estate Brands in 2023 - 2024".
The upward cycle of real estate will be very slow
Speaking at the opening of the forum, journalist Pham Nguyen Toan - Vice President of the Vietnam Real Estate Association (VNRea) assessed that in 2023, the real estate market has gradually warmed up as the Government and ministries, branches, Localities recognize bottlenecks and are accelerating institutional reform, simplifying administrative procedures, overcoming overlapping and inadequate legal regulations, causing risks to implementers.
Citing the latest survey of the Vietnam Institute of Real Estate Research (VIRES), Mr. Toan said that at present, many National Assembly Delegates and experts are members of the Government's advisory council and leaders of ministries. , industry, businesses and international investors... all said that investor confidence in the Vietnamese real estate market is gradually returning, positive energy and bright spots are present.
“But, to restore and develop the real estate market, financial resources are very important. And what is even more important is the institution. Good institutions will free up resources and help "money make money". The legal "shirt" is expanded, the room for development will open up", Vice Chairman of VNRea emphasized.
Also expecting a recovery of the real estate market in the near future, Dr. Vo Tri Thanh - Director of the Institute for Strategy, Branding and Competition Studies also acknowledged that the current period is very difficult for the real estate market, so the supportive policies of the Government, ministries and branches in recent times is very large, much larger than the crisis period of 2013.
Mr. Pham Nguyen Toan - Vice Chairman of VNRea spoke at the forum.
Agreeing with Mr. Pham Nguyen Toan, PhD. Vo Tri Thanh said that there have been many conferences and meetings of the Government and Prime Minister held to discuss solutions to remove difficulties for the market - these are unprecedented efforts of the Government.
According to VIRES forecast, the market will officially recover from the end of the second quarter of 2024. However, the upward trend is quite slow and depends on many factors, both objective and subjective.
And Mr. Pham Nguyen Toan also noted that even though the most difficult period has been overcome, the real estate market still has difficulties and to overcome them requires courage to look straight at the truth.
Assessing that Vietnam's real estate market is currently at the bottom of a "U-shaped" shape, Vice Chairman of VNRea predicted that this cycle will continue to "go sideways" and although very slowly, will tend to gradually inch up. .
Expectations from institutional dismantling
Speaking more clearly about the difficulties of the real estate market in recent times, Associate Professor. Dr. Nguyen Quang Tuyen - Vice Chairman of the Council of Hanoi Law University said that the real estate market faces two barriers: legal institutions and access to capital.
With institutional difficulties, Mr. Tuyen commented that throughout 2023, the National Assembly, the Government, ministries and branches have made great efforts to remove legal bottlenecks.
"The proof is that after 10 years, three important laws, the Land Law, the Housing Law, and the Real Estate Business Law, have been amended at the same time and will take effect starting from January 3, 1," Mr. Tuyen cited evidence.
With the Real Estate Business Law, the expert said that there are some new points such as removing houses formed in the future, related to deposits; Payment for future housing is made in several installments, the first installment must not exceed 30% of the contract value, the second installment must not exceed 2% of the contract value.
With real estate brokerage, activities have been more strictly controlled. Individuals practicing real estate brokerage must have a practicing certificate issued by the Ministry of Construction and are not allowed to practice independently.
With the Housing Law, some new points include officially recognizing the mini apartment type, including a certificate of issuance of pink books for this type; Remove regulations on apartment ownership. In addition, create conditions for real estate businesses to build social housing to reserve 20% of land area for commercial business; Expanding the number of buyers of social housing... is also highly appreciated by the expert.
With the Land Law, there are also some highlights such as expanding and regulating businesses' access to land more openly; Expanding land use rights to Vietnamese people residing abroad who are Vietnamese citizens, including regulations on receiving land use rights, creating conditions for them to directly participate in domestic real estate transactions ... In particular, the Land Law 2024 has removed the land price framework, determining land prices according to market prices.
Associate Professor. Dr. Nguyen Quang Tuyen highly appreciated the Government's efforts to support the market.
“It can be said that the completion of 3 laws related to the real estate market is a common achievement, a great effort of the National Assembly, the Government, ministries, branches, and the entire people during nearly 2 years of comments, Edit and complete the law making," the expert commented.
Up to now, according to Associate Professor. Dr. Nguyen Quang Tuyen Once the institution has been completed and clearly defined, the important thing now is how to implement it to remove existing problems in the land and real estate market.
In order to start implementation from January 1, 1, currently, ministries and branches are urgently developing decrees, circulars, and documents guiding implementation. However, the expert believes that there are still some things that cannot wait until early 2025 but will be applied as early as April 2025, 1.
“I hope that legal solutions will be quickly implemented and effective to help businesses in 2024 and the following years prosper, bringing efficiency and practical benefits. more realistic, not only for businesses but also for people and countries to benefit from the issued policies," Mr. Tuyen expressed..
