Experts and businesses in Ho Chi Minh City’s real estate sector have mapped out recovery scenarios after the COVID-19 pandemic passes, with the local property market having experienced a marked slowdown.

Economists believe that real estate will remain a safe shelter for investors, and will still bring attractive profits in the post-Covid-19 period.

Experts believe that the real estate market is unlikely to fall into a crisis and housing prices will remain stable because market demand remained high while supply is limited.

National Assembly deputies say if the government gives financial support to real estate firms and private schools, it will only be saving rich people.

The HCM City Real Estate Association (HOREA) says there has been a sharp increase in inventory and has urged loosening of legal procedures to hasten completion of projects.

Tax incentives for developers of social housing projects for lease should be made clear and consistent to encourage private investment in the segment, according to the HCM City Real Estate Association.

The HCM City real estate market provides more housing projects and subsidises rentals to boost the market amid the COVID-19 pandemic.

Businesses that previously focused on developing housing projects have begun to lease offices

Despite the COVID-19 outbreak piling pressure on the toughest segments of the real estate market in hospitality, retail, and industrial property, positive signs have also been unearthed.  

The coronavirus epidemic has caused a shock to global tourism, seriously affecting hotels and resorts.

Experts believe the State's issuance of ownership certificates for non-residential real estate projects will solve existing difficulties in Vietnam’s real estate market.

 The development of a commodity exchange in Vietnam is expected to provide an alternative for investors when they find difficulties investing in risky assets such as stock and real estate.

To minimize risks as the real estate market has decelerated, investors have been told not to pour all their money into one project.

Many new policies will take effect in 2020 which aim to warm up the housing market segment for those with real accommodation demand.

The real estate market was stagnant in 2019 and it will continue to be soft in 2020, when many businesses and contractors are expected to go bankrupt because of the lack of projects. 

Thousands of real estate brokers have had to leave the market, which has cooled down.

Akihiko Iwatani, chief representative of Haseko Corporation in Hanoi, believes that Vietnam is the most attractive market in ASEAN for Japanese investors in particular and foreign investors in general.

JLL estimates that hundreds of millions of dollars from Japan, South Korea, Singapore and China are waiting to be funneled into Vietnam’s real estate market.

Commercial banks’ finance reports show that bad debts have been increasing again. Bad debt will be one of big problems for banks this year.

No longer relying on bank loans, real estate firms are seeking capital from many different channels, including bond issuance, stock sales and M&As.