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The recovery process may start from the third quarter of 2023 onwards. As legal bottlenecks, lack of capital access, and challenges in raising capital from corporate bonds are major issues that have hindered the development of Vietnam’s real estate market,  experts suggested 2023 would be a turning point to address these shortcomings. Locals looking at a property project. Photo: Tieu Thuy Addressing supply-demand imbalance The year 2022 proved to be a dismal period for the real estate market, as changes in legal policies and the tightening of bank credit have almost frozen the market. Property developers, large or small, were forced to undergo restructuring to cut costs or postpone investment and construction activities. Others have put their plans to issue shares on hold, some even having to borrow capital outside the banking system at very high-interest rates to stay afloat. The real estate market entered a period of depression unprecedented in the … [Read more...] about Vietnam’s real estate market at turning point in 2023: Experts

According to data from b atdongsan.com , the investor sentiment index for the start of 2023 is 36 points, a significant decrease from 47 and 40 points in the first and second halves of 2022, respectively. The category in which real estate purchasers' and sellers' enthusiasm decreased the most was real estate loan interest rates. In comparison to the second half of 2022, the index evaluating real estate investors' happiness with the market, the likelihood of future price rises, and their ability to purchase a property declined by 12-14 points at the start of 2023. According to Le Bao Long, the strategic director of Batdongsan.com , the sentiment index of investors interested in the real estate market is based on six factors: market satisfaction, the ability to purchase a home, market conditions, interest rates, policy decisions, and potential property prices. Although the future price growth index is not as high as it was at the beginning of 2022, 70 per cent of respondents … [Read more...] about Investors bullish on real estate in 2023

Unpredictable times in real estate sector, photo Le Toan The real estate market in 2022 lacked new projects, and even current projects open for sale are facing liquidity issues. Liquidity remains low with an increase in interest rates, a lack of real estate credit, and weak consumer sentiment. Dat Xanh Group’s consolidated financial statements showed that, by the end of the third quarter of 2022, it had total assets of $1.36 billion, up 11 per cent compared to early last year. However, inventory reached $608 million, up 25 per cent. For Khang Dien House Trading and Investment, total inventory value reached more than $522 million, up 65 per cent compared to the beginning of the year and accounting for nearly 60 per cent of total corporate assets. Financial expert Dr. Dinh The Hien said, “Some businesses face the risk of bankruptcy because cash has been poured into many projects. They need to handle inventory and bad debts, and restructure activities, to clear cash flow.” If … [Read more...] about Unpredictable times in real estate sector

The capital structure of real estate last year suffered from the lack of other capital channels alongside, photo Dung Minh At the beginning of January, Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong said that boosting public investment disbursement, executing tax reductions and extensions, and modifying real estate prices would unclog cash flow through the economy. “Since Vietnam’s monetary and credit indicators have reached a warning level, over-reliance on bank loan sources may result in future issues,” Hong said. Currently, the SBV’s top aim is to guarantee liquidity and keep the system stable and secure. In addition, to eliminate obstacles for enterprises and individuals, the banking sector has emphasised reforms and simplifications of lending processes to enhance access to finance Hong also said that for many firms that could not qualify for loans, the state must implement credit guarantees and small and medium-sized company assistance measures. Almost … [Read more...] about Real estate stability on top of SBV agenda

Tran Khanh Quang, CEO of developer Viet An Hoa, said by the end of the second quarter companies would settle problems such as big inventories and sluggish cash flows. From the third quarter onwards the market would gradually recover, provided bank loan interest rates remain steady at 10-12%. The decrease in prices could then slow down. This scenario was 50% likely, but in a more optimistic one the market would quickly recover starting at the end of the first quarter though the likelihood was only 20%. In the former case, prices in prime locations in HCMC would plateau but continue to drop in the suburbs, with few transactions taking made. Prices would decrease by 5-7% in the city’s three neighboring provinces of Long An, Binh Duong and Dong Nai, 10-15% in Ba Ria- Vung Tau and 15-20% in more distant provinces such as Tay Ninh, Binh Phuoc and Dak Nong. Large real estate companies were trying to fix cash flow bottlenecks by extending debts, selling part of their projects, … [Read more...] about Real estate market to remain mired in difficulties in H1: industry

HoREA head Le Hoang Chau stated that the real estate market is challenging. The most critical obstacles to overcome are legal problems and a lack of financial resources. "It's not just small firms, even huge organisations and multinationals have significant financial issues," Chau warned. According to the chairman of HoREA, transactions in the real estate market have decreased to the point where it is no longer viable to mobilise funds from clients. Access to financing is problematic not just for enterprises but also for homeowners and investors. Regarding the reason, Chau said that in addition to the difficulties imposed by the state's intentional removal of processes and rules, businesses also have a financial burden. "Enterprises spend heavily without measuring their performance and the product structure is not market-appropriate," he said. This results in market phase differences and an imbalance in product development. Both affordable and social housing is in short … [Read more...] about Calls for real estate market overhaul

In 2022, the retail market in general and townhouses in particular recovered with a better occupancy rate, but the recovery has not reached the level of the pre-COVID-19 period. — Photo tapchixaydung.vn The retail space market has the opportunity to grow strongly in 2023 with the forecast of the recovery of the retail industry, especially with new investment of foreign brands in Viet Nam. Many retail brands are looking at Viet Nam because the economy is strong, and they see the potential. Brands are diverse and range from luxury to mid-market brands, said Nick Bradstreet, head of Asia Pacific Retail, Savills. For example, Lotte is completing a new project, and it is expected to welcome international brands. "The challenge Viet Nam is facing is that there are not enough shopping centres being built to meet the demand from international retailers," he said. Viet Nam’s economy is growing quickly, which creates an attractive retail outlook. By 2025, Viet Nam will be the third … [Read more...] about Viet Nam retail real estate market expects growth in 2023

According to the owners, this is the gloomiest situation in nearly a decade due to the slow down in the real estate market and cash shortages, which started in the second half of 2022. Phu, chairman of a real estate company in District 1, said that five days before Tet he mortgaged a house his family is living in, his personal property, to obtain the several billion dong he needed to pay the 13th month salary and Tet bonuses for his employees, taxes, and debts owed to his firm’s partners. Tet falls on January 22-26. Tet bonus is the biggest and most anticipated reward for workers. To save money, for the first time in a decade, his company has not held a year-end party, Phu said. "If the business does not improve in the first six months of this year, I will have to sell some assets and cut staff for the fourth time." Similarly, the chairman of a real estate brokerage company with hundreds of employees has had to complete many procedures to get a personal loan of nearly … [Read more...] about HCMC real estate agencies struggle to pay Tet bonuses

Apartment blocks in Ha Noi. Experts are concerned that affordable housing has been declined steadily in recent years. — VNA/VNS Photo Danh Lam The government has taken timely measures to support the realty market during tough times, according to Vuong Duy Dung, deputy director of the Housing and Real Estate Market Management Agency. Dung was speaking at the workshop 'Measures to ease the difficulties facing the realty market and the market outlook in 2023' on January 13. The deputy director said the Prime Minister had issued various legal documents to lift the market out of difficulties, including Decision No.1435 and Official Dispatch No.1164. Under the decision, a team led by the Ministry of Construction has been established to report on obstacles holding back local realty projects. In two weeks, the team has travelled across five provinces and met 30 realty firms to take stock of their situation. After the team reported to the Prime Minister on the local situation, the … [Read more...] about Experts call for favourable policies to help real estate

In recent years, the real estate market in many regions, notably in large cities like Hanoi and Ho Chi Minh City, has seen a constant price rise, preventing many individuals with genuine housing requirements from purchasing affordable houses. Numerous experts have noted that the structure of real estate goods is out of sync, as the shopping cart is dominated by unsuitable items for consumers' budgets. This is also a contributing factor to the fast decline in liquidity when the market is volatile. According to Nguyen Nam Hien, chairman of VPCORP, the real estate market will undergo a purification phase in 2023 and discover its genuine worth. Demand for housing remains high, particularly in the medium-market category, which meets the demands of the vast majority of clients. Especially in Ho Chi Minh City's outlying towns, possibilities will arise for investors and those with genuine housing requirements. This year, according to Hien, mid-priced homes continue to dominate the … [Read more...] about Genuine estate market relies on demand