Real estate market to recover by Q3: experts

With the Government’s drastic measures to address problems related to legal bottlenecks, lack of capital access, and challenges in corporate bonds, the real estate market is expected to recover from the third quarter, experts have said.
Real estate market to recover by Q3: experts ảnh 1

Experts discuss ways to remove challenges in the real estate market and promote its sustainable development on February 25. (Photo: VNA)

Hanoi (VNS/VNA) - With the Government’s drasticmeasures to address problems related to legal bottlenecks, lack of capitalaccess, and challenges in corporate bonds, the real estate market is expectedto recover from the third quarter, experts have said.

Experts have also called for continuing market restructuring bydiversifying products, especially affordable housing, and addressing themismatch between supply and demand.

Speaking at a talk on how to remove challenges in the real estatemarket on February 25, Prof Dr Tran Dinh Thien, a member of the PrimeMinister’s Economic Advisory Group, said the real estate market was facingserious problems such as a lack of capital access, credit tightening, and legalbottlenecks.

The market has faced unprecedented hurdles in the past five yearswith a huge inventory and a sharp drop in liquidity, he added.

It has seen a significant imbalance between supply and demand withan oversupply in the high-end segment but a shortage of affordable housingproducts, he said. 

Fortunately, the market would have positive signals based on ViệtNam’s economic prospects in 2023, he added.

He attributed to the promulgation and amendment of the three lawsrelated to the real estate market, including the Law on Land, the Law onHousing, and the Law on Real Estate Business.

“The key is to remove the legal and capital bottlenecks, includingreal estate corporate bonds,” he noted.

It’s good that the Prime Minister has already issued fourdirectives to remove difficulties for the economy, especially the real estatemarket, according to Thien. 

Dr. Can Van Luc, a member of the National Monetary and FinancialPolicy Advisory Council, said the Government has focused on improvingmechanisms and policies (both short- and medium-term) related to the realestate market, aiming at improving the cash flow, which is important to regainthe confidence in the market.

Removing roadblocks for the corporate bond market is also importantto unlock capital sources, Luc said.

“The decree amending Decree 65 issued in September 2022 oncorporate bonds is being urgently revised, which is expected to removedifficulties for the corporate bond market.” 

The Government has also taken measures such as rescheduling,deferring debt, tax, and land rent for real estate businesses, he added.

The Ministry of Construction has recently proposed a creditpackage worth around 110 trillion VND (4.6 billion USD) similar to the 30trillion VND package implemented in the 2013-2016 period to finance socialhousing projects and housing projects for workers, he said.

Dr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real EstateAssociation, said: “The real estate market will become warmer by the thirdquarter of 2023 as the government has made drastic moves to create conditionsto help the market develop sustainably.”

The government has also established a working group to proposesolutions with ministries and local authorities, and will review and work withlocalities, projects, and investors to remove bottlenecks, he added.

Speaking at a recent meeting, economist Vo Tri Thanh said thereremained high hopes this year for the real estate market, especially insegments of real estate tourism, industrial parks, and retail, followingdrastic actions of the Government. 

Once the Land Law and Law on Real Estate Business are finalised,they would provide opportunities for investors to come back to the market, headded.

Experts also recommended the Ministry of Finance implementmeasures to develop the corporate bond market transparently, safely andsustainably. 

The event aimed to discuss ways to address challenges in the realestate market and promote its sustainable development./.
VNA

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