The real estate market will face more challenges in H2/2022 because of cost-push inflation, interest rate increases and limited lending, while property prices will cool down, according to VNDirect’s latest report.

Credit expansion is good news, but not for the property sector, as banks have poured too much money into it, experts said.

Although real estate experts are worrying about a debt of VND 360 trillion ($15.6 billion) in bonds that will be due date in the 2022-2024 period, some businesses have returned to issuing bonds for potential investments in their next periods.

Building a solid and long-term legal basis for corporate bond issuance is an urgent solution to build a capital market for the real estate sector.

Removal of the land price framework issued by the Government will make the market more transparent and prevent real estate from skyrocketing.

Real estate and stocks which are seen as risky investment vehicles are facing strict financing controls. Manufacturers have begun to feel the squeeze as they have found it harder to borrow from banks.

As the tightening of lending and corporate bond issues is hitting the property sector, the market is doomed to grapple with severe financial hardships.

Amid global inflation, the super-rich are still pouring money into luxury real estate. In some Asian markets, for example, Singapore, house prices rose 4.1% in the first half of 2021 as Asian tycoons looked for a safe haven.

Mr. Nguyen Minh Nhat, General Director of Van Xuan Group, said that real estate projects are based on the following capital sources: equity capital, bank loans, bonds and share issuance and capital mobilized from customers.

Unlike other industries, in the real estate sector a large inventory value can create a "steel punch" for businesses, but can also be an indicator of challenges.

To solve the problem of lacking capital, real estate businesses must change to suit the situation. They must focus on the capital market (issuing corporate bonds, stocks).

Cash flow to the real estate market has been tightened. Now is the time for major realtors to buy land.

Vietnam’s logistics industry is developing strongly thanks to the growth of the e-commerce industry, according to Savills Vietnam.

The real estate market of Vietnam showed signs of recovery and more balanced development in the second quarter of this year with increases in the number of successful transactions of apartments, houses and land.

The massive development of resort real estate has led to an oversupply in the market.

At a government-to-business conference held yesterday, representatives of business associations expressed their concern over being unable to access bank loans as banks are running out of credit growth quotas.

As apartment prices have been increasing rapidly, many people with limited financial capability want to buy small houses located in alleys.

Many suburban villas and houses have been left unused for tens of years with overgrown patches of grass overgrown. But prices are still very high.

The prices of land and houses have been leveling off in most localities, according to the Ministry of Construction (MOC).

Since the beginning of the year, the real estate market has seen an uptick in merger and acquisition (M&A) activity, including office, residential, and industrial projects.