Hanoi (VNS/VNA)  —The domestic real estate market is forecastto recover in the second half of the year thanks to policies issued so far in2023.

The Government has made many decisions to helpsolve difficulties of the real estate market to solve obstacles related tocapital and legal procedures for property projects.

Economist Can Van Luc, a member of the NationalMonetary and Financial Policy Advisory Council, said we'll need to wait untilthe fourth quarter of 2023 to see a clearer path for recovery of the propertymarket, as policies issued to remove obstacles in the market will take time tohave real impacts.

According to Luc, in the second half of 2023, itis still necessary to speed up the review and have solutions to continueremoving problems of real estate projects; and accelerate the disbursement ofpublic investment, the implementation of rehabilitation programmes, and thedevelopment of social housing and housing for workers. Authorities also need tofocus on regulating supply and demand in the real estate market.

In addition to stipulating the classification ofreal estate segments to have appropriate credit, capital and financialpolicies, the management agency needs to have a suitable tax schedule andpromote non-cash payments for real estate transactions.

Meanwhile, enterprises in the property sectorneed to have a specific and feasible plan to pay for mature corporate bonds,especially in the period of 2023-24.

Besides bank credit, there are many channels tomobilise capital, such as bonds, stocks, investment funds, real estateinvestment trusts (REITs), and finance leases, Luc said.

Assessing the market, Nguyen Vu, director of theNew Home Real Estate Centre, said that the market will have better performancein the fourth quarter of 2023 or in the second quarter of 2024 if theGovernment's policies on supporting the real estate market have real impacts onthe stakeholders in the market.

The market is still struggling with limitedtransaction volume and is waiting for better performance in the second half of2024 thanks to policies and credit packages for developing social housing and housingfor workers.

Pham Anh Khoi from the market research team ofthe Viet Nam Real Estate Brokers Association (VARS), said that there will betwo scenarios for the real estate market in the second half of the year.Specifically, in the first scenario, if the real estate market remains indifficulties and investors' confidence has not been restored, it is possiblethat capital will continue to stay in the banking system even though interestrates are at lower levels.

In the second scenario, if the deposit interestrates fall to 6-7% by the end of this year or even do not decrease, thecapital from deposits will likely return to the real estate market when buyers'confidence is improved./.