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Update news real estate market
The Ministry of Construction (MoC) will study suitable tax policies in the real estate market to encourage the effective use of houses and land, limit speculation, and ensure State budget revenue.
Because of reduced liquidity and lack of cash, many real estate firms have cut wages and the number of personnel.
Affordable housing projects have turned into high-end projects in HCM City’s real estate market, experts said.
The real estate market is currently facing a serious crunch, not seen in the last ten years. Both investors and real estate businesses have never faced such difficult times before.
Financial resources for the real estate sector including bonds, funds raised via the stock market, and especially bank loans contracted substantially in the third quarter of this year.
Tightening control over credit and bond issuance has affected real estate investors, forcing them to stop work on many projects, according to HCM City’s report to the Ministry of Construction (MOC) on the city’s real estate market in Q3/2022.
Real estate businesses are struggling to manage, with capital mobilisation channels narrowing, while businesses are operating in moderation, cutting investment, and waiting for policy easing.
The real estate market is currently going through a tough phase due to a tight monetary policy and a surge in the corporate bonds market. These are the reasons why real estate stocks are also losing their inherent value and luster.
Businesses are trying to restructure their properties in anticipation of credit tightening and interest rate increases.
Only 990 apartments in HCM City were transacted in Q3 and the absorption rate was 15 percent, the lowest level since 2019.
The social housing market has unexpectedly attracted many real estate developers.
Real estate projects include different business fields, such as designing, construction and financing. With frequent information generation, developers need technological tools to manage it.
Real estate sector attracted 3.5 billion USD in foreign direct investment (FDI) the first nine months of this year, accounting for mearly 19% of total FDI that the country lured in the period, coming second among sectors in terms of FDI attraction.
Controversy has arisen over the Ministry of Construction’s draft of the amended law on real estate trading as it requires real estate products to be traded on an official exchange.
Wealthy Vietnamese are ready to spend millions of dollars to buy super-luxury properties.
Many prop-tech startups are facing challenges, though it is a new market with potential in Vietnam.
The branded residence market is gaining a stronger foothold in the Vietnamese market with potential to further develop, shaping the lifestyle of the country’s elite, according to experts.
Many investors have quit large-scale investment projects capitalized at trillions of dong.
Minister of Finance Ho Duc Phoc noted that there are many loopholes in land management, and one unreasonable decision is enough to cause VND100 billion or VND1 trillion to be lost.
The State Bank of Vietnam's decision to raise credit growth targets for banks is expected to create favourable conditions for businesses to lend capital, including real estate firms, according to experts.