The Vietnamese real estate market is recovering, though the process has been going slowly. Property firms are applying flexible solutions and seeking support from local authorities to overcome challenges.

The real estate giant saw record gains in Q3, following a revaluation that initially turned profits to a 7,300 billion VND ($297.8 million) loss earlier this year.

The Ministry proposes taxing additional properties and unused land to stabilize the real estate market and discourage speculative buying.

Despite a modest influx of foreign direct investment (FDI) in the real estate sector since early 2024, Savills Vietnam sees a silver lining in the surge of FDI into high-tech manufacturing.

Citing cases in which buyers bid sky-high prices and then give up the deals, National Assembly Economics Committee chair Vu Hong Thanh pointed out that problems at land auctions have recurred, having a negative impact on the housing market.

Deputy PM Tran Hong Ha yesterday ordered competent ministries and local administrations to evaluate the real estate situation as well as the responsibilities of relevant sides in housing market predictions and regulation of realty product segments.

New apartments in Hanoi have been marketed at sky high prices, while old, degraded apartments are still selling for VND70 million per sq m.

Developing a legal framework for joint real estate investment in Vietnam will be difficult, despite the laws on land, housing and real estate that took effect at the beginning of August, experts have said.

The Ministry of Construction and the Ministry of Finance have aligned on a proposal to tax multiple property owners in an effort to reduce speculative behavior and stabilize the real estate market.

Despite its prime location on one of Da Nang’s most beautiful coastal roads, the $30.2 million Aria Da Nang Hotel & Resort project has been left incomplete and abandoned.

Vietnam’s property sector remains vulnerable to money laundering with the risks high in the sector, according to the latest report by the State Bank of Vietnam (SBV).

The Vietnamese real estate market is recovering slowly, facing numerous challenges. Companies are seeking flexible solutions and collaborating with authorities to overcome these hurdles.

Apartment prices in the primary market in Hanoi soared to VND69 million per sq m in the third quarter of 2024. With an average income of VND7 million per month, Hanoians need 50 years to save to buy a VND4 billion apartment.

The Ministry of Construction (MOC) has proposed setting up a real estate and land-use right transaction center under state management, saying the center would help minimize risk in prices and legal status for buyers.

The association said that the real estate market normally has about 300,000 - 400,000 practising brokers. After the 2023 Real Estate Business Law officially took effect, individual brokers must have certificates.

Foreign investment are continuously poured into the real estate market in southern localities, resulting in the emergence of a series of new property projects in the past eight months.

Taxing second and subsequent homes and tightening lending to real estate buyers should only be considered if the move causes negative effects to the market, according to Nguyen Van Dinh, deputy chair of the Vietnam Real Estate Association (VREA).

Recent proposals by the Ministry of Construction and the Vietnam Real Estate Brokers Association to tax second homes have reignited a fervent debate, highlighting potential drawbacks that could overshadow the intended benefits.

While some real estate companies have paid large dividends to investors, many others in the sector still have to struggle to rotate capital sources to pay debts and reinvest.

The Ministry of Construction predicts a 15-20% rise in housing prices following the update of Vietnam's land price index to reflect market values more accurately.