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.

Many buyers have become less interested in apartments after hearing that the Ministry of Construction (MOC) has proposed the setting of a cap on the term of apartment ownership. Despite this, apartment prices remain high.

Experts say buying houses now, especially good projects, will help people optimize their credit and price advantages.

Apartment prices in Hanoi have been increasing, now hovering around VND40 million per sq m.

Many banks have so far not only closed their doors to real estate development borrowers but also restricted loans to home buyers.

Prime Minister Pham Minh Chinh stressed that land needs to be used in the right way to create value and jobs, and that real estate development must not be the priority.

The real estate prices in city neighborhoods have decreased, causing big losses to investors.

Prof Dang Hung Vo said Vietnam is taking a step forward with the policy that the lives of people whose land is taken back by the state to make room for investment and development projects must be equal or better than they were before.

Having been dealt many blows, real estate firms have changed their business strategies and scaled down operations.

Prime Minister Pham Minh Chinh, at a conference on the real estate market held recently, affirmed that Vietnam will not tighten real estate credit in an unreasonable or rigid way.

Minister of Construction (MOC) Nguyen Thanh Nghi said real estate prices continue to rise. Very few affordable housing products exist in Hanoi and HCM City.

People may be reluctant to buy apartments if the Ministry of Construction’s (MOC) proposal on setting a cap on apartment ownership term at 50-70 years is approved. Instead, they will seek to buy houses on land plots.

As of early 2020, Vietnam had 335 industrial zones, of which 260 were operational with an occupancy rate of 75.7 percent.

Tran Van Tung, a real estate broker, has not closed any sale over the last three months, but still has to pay for travel, phone calls and ads.