The Land Law (amended) and the Draft Decree detailing the implementation of the Land Law have many new points. Market members believe that this will be an important legal foundation for the real estate market in the new cycle.
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| The real estate market is expected to be "unleashed" with new regulations. |
"Bracing" for the law
For a long time, legal procedures have been the biggest headache for businesses when implementing a project. Each project in a different region has a different way of doing things and procedures, no project is the same. Meanwhile, a single stuck step is enough to prolong the project implementation time for years. As a result, the supply of products is in short supply, especially affordable products. Cash flow is not circulated flexibly and appropriately, and is stagnant in unfinished projects...
According to real estate market participants, procedural bottlenecks are part of the cause of the imbalance in the market, making it difficult to plan and develop market regulation policies. Therefore, they have high expectations for the Land Law (amended) to resolve the impasse, creating a more “open” and flexible business environment, while still ensuring strictness and fairness for all market participants.
Mr. Tran Le Thanh Hien, General Director of Danh Viet Group Real Estate Company, commented that the Land Law (amended) is more open and flexible. However, what businesses always expect is to put the law into practice as soon as possible. In addition, the completion time and administrative procedures need to be shortened, otherwise, the story of project procedural congestion will continue to repeat.
Mr. Nguyen Van Binh, General Director of Hung Loc Phat Real Estate Company, said that the Land Law (amended) will help businesses more easily access land and develop projects. However, the law will not take effect until early 2025, and then we have to wait for the documents guiding its implementation... so it takes a long time to wait, while businesses have been stuck for many years, and are "exhausted", so we really hope that the procedures will be resolved soon.
Creating momentum for a new cycle
From a market perspective, after the Land Law (amended) was officially passed, many experts said that this is a "medicine" that has a strong impact on the psychology of buyers, especially real estate investors and businesses.
The Land Law (amended) will not be applied in practice for another year, but its clear impact is that it has cleared up market psychology and confidence, which have been suppressed for a long time. 
Mr. Tran Hoai Bao, General Director of TPI Real Estate Company, shared that the Land Law (amended) will not be applied in practice for another year, but the obvious impact is that it has cleared up the psychology and confidence of the market, which has been suppressed for a long time.
“In reality, from the past to the present, the majority of Vietnamese people have a preference for investing in real estate, because real estate is not only for living or doing business, but also for saving assets. When people have money, they tend to invest in real estate as savings,” said Mr. Bao.
This CEO added that recently, the market has lost liquidity, partly due to the impact of the economic recession, and partly because investors have stayed out of the game because they fear policy changes with many rumors of unfavorable investment conditions such as time limits on apartment ownership, high taxes on second property owners, etc.
"Through surveying customer psychology, I believe the real estate market will quickly improve," said Mr. Bao.
According to Mr. Bao, in addition to the psychological impact of policies, other factors such as lower interest rates will stimulate demand for real estate investment to increase again.
From another perspective, foreign investors see Vietnam’s recent land law reforms as a step forward in improving the investment environment. These reforms demonstrate the Government’s commitment to creating a favorable environment for real estate development. This is certainly encouraging.
Evidence is that foreign direct investment (FDI) registered in Vietnam in 2023 reached nearly 36.61 billion USD, an increase of 32.1% over the same period in 2022. Of which, the processing and manufacturing sector reached the highest position, accounting for 64.2% of total FDI capital, while the real estate sector firmly held the second position, accounting for more than 12.7% of capital flow. Notably, the industrial real estate segment developed significantly compared to the residential, commercial and hotel real estate segments.
Mr. Neil MacGregor, CEO of Savills Vietnam, predicted that the newly passed Land Law will boost the number of transactions significantly in the coming time. Foreign investors are waiting for the legal documents to take effect.
Currently, industrial real estate dominates FDI inflows into Vietnam, but many investors are looking to invest in office buildings and hotels in cities. The resort real estate sector will need more time to fully recover.
“I believe that when the revised Land Law comes into effect, investor sentiment towards the real estate sector will change dramatically. We will see new commitments and new projects announced. That is truly a game-changer,” Mr. Neil MacGregor affirmed.
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