A building near Ben Thanh Market in downtown HCM City whose construction stopped at the end of last year. The property market slump is expected to continue until the end of 2024. (Photo: VNA) Speaking at a forum late last week, Nguyen Van Dinh, Chairman ofthe Vietnam Real Estate Brokers Association, said the market would continue tostruggle with limited access to capital, legal bottlenecks and companies’inability to redeem bonds.
A recent survey by his association found over 70% of businessessaying Government policies aimed at resolving funding difficulties have notbeen effective, he said.
Real estate transactions have plummeted by 90% in 2022-2023,indicating weak market demand, he said.
Even after almost five months since its announcement, theGovernment’s 120 trillion VND credit package has remained untouched.
Dinh blamed this on many projects facing obstacles caused by localauthorities lacking mechanisms and determination to resolve difficulties.
Hoang Hai, Director of the Department of Housing and Real EstateMarket Management, said a number of housing projects are facing delays orsuspension due to legal obstacles.
This has led to a sharp decrease in supply and liquidity, furtheraffecting the real estate market, he said.
Nguyen Quoc Hiep, Chairman of the Vietnam Construction ContractorsAssociation, said 70% of the obstacles stem from legal issues, particularly theoverlapping of laws.
Economist Le Xuan Nghia said the weak domestic demand and slowrecovery suggest a U-shaped rebound in the economy rather than a V-shaped one,leading to liquidity difficulties in many sectors.
Recommendations
To help the market recover and develop sustainably, expertsrecommended increasing the supply of affordable housing.
Vice Chairman of the Vietnam Real Estate Brokers Association NguyenVan Dinh said the market has faced unprecedented problems in the past fiveyears with a large inventory and big drop in liquidity.
To address the imbalance between supply and demand, propertydevelopers should focus on affordable housing and social housing projects, headded.
Economist Le Xuan Nghia said it is vital to issue specificregulations to implement the 120 trillion VND support package for financingsocial and workers’ housing projects.
Businesses also need support to develop affordable housing andovercome factors that discourage them, he added.
Dr Tran Dinh Thien, a member of the Prime Minister’s EconomicAdvisory Group, said it is essential to restore the trust of investors,businesses and consumers.
He also called for more Government support measures to revive themarket./.
VNA
