Nguyen Van Dinh, President of the Vietnam Association of Realtors, has described the recent increase in Hanoi apartment prices as unusual. Although prices have risen sharply, the actual number of transactions remains low, potentially due to a group of investors with ulterior motives driving up prices. These observations were shared by Dinh at the "New Opportunities in the Real Estate Market" seminar organized on August 1.

According to Dinh, the current supply of real estate is problematic. For several years, the market has not seen new projects approved or investment licenses granted. Most available projects are either old or being resold, leading to a lack of quality supply, especially for low-income residents. The product structure is also unsuitable, failing to meet the investment demand due to limited supply.

Predicting future Hanoi apartment prices, Dinh noted that areas with "bubbles" are likely to see price corrections to reflect their true value. However, he also pointed out that apartment prices are unlikely to decrease overall due to rising input costs such as land prices and compensation fees. Project approvals are now more challenging, and only capable investors can develop projects.

"When supply and demand balance, apartment prices will be determined by market forces. Hopefully, more projects will be resolved soon, increasing the supply and variety of available properties. This should help reduce the supply-demand gap and alleviate upward price pressure in the market. In Hanoi, several new apartment projects will emerge by the end of the year, adding thousands of new units," Dinh stated.

Vuong Duy Dung, Deputy Director of the Department of Housing and Real Estate Market Management (Ministry of Construction), highlighted that three laws (Land Law, Real Estate Business Law, and Housing Law) came into effect on August 1, introducing specific regulations to address obstacles and increase market supply.

"The combined impact of these three laws on the real estate market is significant, as they will help boost supply. Additionally, more flexible social housing policies will increase the availability of affordable housing, addressing the needs of low-income residents and affecting housing prices and supply," Dung explained.

During the seminar, Dinh cited statistics showing over $3 billion tied up in unimplemented real estate projects. This situation negatively impacts related industries such as materials, consumer goods, furniture, and electronics. As a result, the financial health of hundreds of real estate companies and service businesses is adversely affected.

Dao Trung Chinh, Director of the Department of Land Planning and Development (Ministry of Natural Resources and Environment), emphasized that passing the three laws will resolve numerous issues, including land valuation and financial obligations.

Chinh noted that since the Land Law 2003 was enacted, some projects have been delayed for 20 years due to unresolved land valuation issues. Many local officials have been hesitant to take action for fear of making mistakes. The new Land Law 2024 aims to address these concerns.

However, Chinh emphasized that the implementation still relies on guidance from regulatory procedures and ministerial circulars.

"Five decrees have been issued so far, covering marine encroachment, land valuation, resettlement compensation, and land assessment. These decrees guide the implementation of the Land Law. Two additional decrees on land use fees and land development decisions, drafted by the Ministry of Finance, have been submitted for approval," Chinh added.

Hong Khanh