“THE REAL ESTATE MARKET WILL BE MORE ACTIVE AT THE END OF 2023”
Unbalanced supply and demand
In Hanoi, the apartment market continues to imbalance in the supply as the middle and high-class apartments still account for a high proportion, while the proportion of affordable apartments is decreasing and low in the correlation. The supply is sold by the investor in the market.
Prices above all segments from 2021 have been pushed up at a high level that makes buyers and buying for investment to invest as well as hesitant.
However, the highlight of the first 6 months of 2023 is that the Government, ministries, branches, and local governments have made efforts to enter the “difficult removal” for the real estate market by promulgating Decree 08/ND. -CP helps to relieve the pressure to pay bonds to businesses; Resolution 33/NQ-CP removes difficulties and difficulties for the market in all three groups of legal issues, capital and social housing; The policy of economic and monetary financial management of the government is creating a more positive psychology for the market. Recently, the City People’s Committee. Hanoi is considering the recovery of projects that are slow to implement for many years in areas to gradually create transparency for the market, and eliminate poor quality projects.
Many experts believe that the current market is similar to the period of 2011-2012, however, Ms. Do Thu Hang, senior director of, consulting and investment department, Savills Hanoi assessed, both stages There is similarity, but there are many differences, which is the market size in the previous period, focusing mainly in big cities, now the real estate market has thrive many localities. . The selling price at the time of recognition until the first quarter of 2023 was higher than before Covid-19, the price adjustment decreased unclear. Meanwhile, at the end of 2012, the price of low-rise housing in the project has dropped sharply by 30% compared to the same period in 2011 – the time the Hanoi market entered the recession period.
“Currently, the market is facing larger challenges in the previous approach of capital development, investment as well as solving prolonged project legal issues that make the supply limited and lack of products. Suitable products, and increased development costs due to expected input costs. Accompanied by this is the wait through major law projects in the year such as amended Land Law, amended Real Estate Business Law, and amended Bidding Law, ”Ms. Hang said.
At the end of the year, the market will be warm?
In the current period, the real estate market is difficult in terms of legal and cash flow, Savills expert said that in order for the market to go up, it is necessary to have a synchronous solution from all stakeholders, from the management agency. State, investors, investors to credit institutions. It is necessary to have a synchronous combination of many solutions from the legal policy, to complete the amendment laws such as the Land Law, the Housing Law, the Law on Real Estate Business.
At the same time, it is necessary to have land price policies, land use levies, land rent … harmonizing the common interests towards stable and sustainable market development. In addition, developing transport infrastructure to help people easily move between areas to create flexibility will maximize the demand for housing.
Ms. Hang said that, on the investor’s side, it is necessary to be flexible in finding capital development capital in addition to capital from the bank such as investment cooperation and business to offer good products, price policies, Attractive and diverse sales meet most buyers’ requirements. In addition, the prospect of attracting credit/capital from foreign real estate investment companies/investment funds into the key area is very active. These companies/ investment funds are present in Vietnam and are studying investment opportunities to be able to pour capital. This is also an opportunity for domestic real estate businesses to exploit.
