Hoang Hai, head of the Department of Housing and Real Estate Market Management, said the real estate market has faced hurdles since late 2022 because of the global recession and the difficulties of Vietnam’s economy.

The real estate market faces decreased purchasing power and liquidity, shortage of affordable products and oversupply of high-end products, difficulties in bank loan access, and capital mobilization from clients.

The government has directed ministries and branches to create legal documents and perfect the legal framework to support real estate development. The Law on Real Estate Business and Housing Law have been amended, while the Land Law and Law on Credit Institutions have been submitted to the National Assembly for ratification in the upcoming session.

Hai said that once the five laws take effect, they will cause major changes to the real estate market, help increase supply and regulate market prices to make them more suitable to people’s financial capability.

Pham Thi Mien from VAR said that the real estate market became more bustling in the fourth quarter of 2023 with many projects for sale.

The supply and transactions in the fourth quarter saw considerable improvement, with 7,000 products launched on the market. Meanwhile, 46 social housing projects with 20,210 products were completed.

The total housing supply for sale in 2023 was 55,329 products, an increase of 14 percent compared with the total products put on sale in 2022, while 18,600 apartments and low-storey products saw successful transactions.

Nguyen Minh Phong, an economist, commented that there are favorable conditions in the real estate market in 2024. The instructions by the government and decreased interest rates will help businesses access bank loans more easily, while people will pour money into real estate. 

Predicting the real estate market performance in 2024, VAR chair Nguyen Van Dinh said 2024 may be the last year before it begins recovering.

Dinh said the new regulations in the new laws have not been applied yet, but they will send positive signals to realtors to develop new projects in anticipation of better times ahead. 

He said that positive signals turning up in late 2023 will continue in the first and second quarters 2024, while the market will see clearer recovery from the end of third quarter.

Hong Khanh