Apartments located in advantageous positions in Hanoi and HCM City have average prices of VND50-60 million per sq m.

Bankers say they do not lack policies to provide loans but face problems related to the subprime quality of collateral.

The number of real estate firms declaring bankruptcy and dissolution in 2022 increased by 38.7 percent over 2021, according to the Ministry of Construction’s (MOC) recent report.

The State Bank of Vietnam (SBV) has never issued any documents or statements ordering credit for real estate be tightened, Deputy Governor Dao Minh Tu said on February 8.

The HCM City People’s Committee has consulted with the Ministry of Planning and Investment (MPI) on the draft of a resolution to replace the National Assembly’s Resolution 54/2017/Wh14 on policies to create momentum for the city development.

Over 80% of real estate bonds have been issued by unlisted firms that are financially weak and have low transparency, said the credit rating agency FiinRatings.

Investors tend to target real estate with real value. Products with value of below VND1.5 billion will be the most chosen.

As of December 31, 2022, the outstanding loans provided to the real estate sector had reached VND800 trillion, while the figure was VND700 trillion by the end of 2021, said the Ministry of Construction, citing SBV’s (State Bank of Vietnam) figures.

Volatile real estate market caused revenue and profit of realty businesses to decrease sharply in the fourth quarter of 2022.

Believing that the market will recover in 2023, real estate firms have prepared to grasp the opportunities.

Outstanding loans in the real estate sector have topped VND1,200 trillion, according to the Ministry of Construction.

Ho Chi Minh City authorities made a proposal to clear bottlenecks for healthy and sustainable development of the real estate market.

Prices for apartments in Hanoi tend to increase as supply becomes short, according to the Vietnam Association of Realtors (VARS).

Legal entanglements representing 70 percent of the difficulties faced by real estate projects may end up driving the property market into recession.

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 Vietnam.

The government has designed a program on developing 1 million social housing units, committing to apply serious measures to complete the program on schedule.

Bank loans have been made available only to projects with adequate legal dossiers and plausible profit prospects.

The real estate market had to face many difficulties in 2022 and still faces many challenges in the coming year. The Government and ministries have taken a firm decision to support all real estate enterprises in 2023.

Experts have warned that problems won’t be settled overnight and difficulties will still exist in 2023. However, they can see positive signs in the property market.

Many real estate brokers began their Tet holidays in mid-December as they have had little to do.