Will real estate benefit much from the 30% reduction in land rent in 2023?

Regarding the question of how the real estate market will be affected when the Government reduces land rent by 30% in 2023, speaking to Thanh Nien , Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), said that this is good news for the whole economy. Reducing land rent by 30% in 2023 will help reduce difficulties for businesses and people. Manufacturing enterprises will benefit first, positively affecting the prices of goods in the market.

Bất động sản có được hưởng lợi nhiều từ giảm 30% tiền thuê đất năm 2023? - Ảnh 1. — Real estate will not benefit much from the 30% land rent reduction policy in 2023

However, for the real estate market, the 30% reduction in land rent in 2023 has little impact.

"The supply of new projects is too low in all segments. Many people expect that at the end of the year there will be many affordable housing projects with a series of support policies, but now it is the fourth quarter and the market has seen almost no positive signals. There are few new projects, meaning that the amount of land used is not much, so there is little impact. Luckily, the market for leasing offices, retail space, industrial real estate... on land leased from the State will benefit," said Mr. Dinh.

Economist Ngo Tri Long said that the policy of only reducing land rent by 30% in the context of sluggish real estate market does not have much impact, and businesses have not benefited much even though it is related to land. To recover the real estate sector, it is necessary to remove legal obstacles and open up capital sources, especially for social housing projects to create liquidity and gradually "warm up" the market.

According to Mr. Long, in the context of the current general economic downturn, to stimulate growth, the operating principle will often use tax reduction tools. Businesses and people are facing many difficulties, so reducing land rent by 30% in 2023 will have a positive impact on the economy.

Bất động sản có được hưởng lợi nhiều từ giảm 30% tiền thuê đất năm 2023? - Ảnh 2. — New supply to the real estate market remains tight

Reducing land rent will help businesses and people save costs and capital, create investments, and stimulate growth demand.

"The economy is facing difficulties and the growth rate is likely to not reach the target set by the National Assembly's resolution, even though the next quarter will grow better than the previous quarter. Meanwhile, there are only 3 months left from now until the end of the year, so to support the recovery, it is inevitable that taxes need to be reduced at this time. In the financial sector, we need to nurture revenue sources, not squeeze them dry," said Mr. Long.

Previously, on October 4, Deputy Prime Minister Le Minh Khai signed a decision to reduce land rent by 30% for 2023, applicable to organizations, units, enterprises, households, and individuals that are leased land by the State. The decision takes effect from November 20.

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