The common market has many new movements
The three laws related to real estate, including the Land Law, the Real Estate Business Law and the revised Housing Law, are assessed to have many positive impacts, directly impacting the general market. Legal problems are expected to be resolved, land resources are expected to be unblocked, and the market has the opportunity to filter out investors and develop more transparently.
While the National Assembly is pressing the button to approve the early implementation of the laws, the Government is also paying close attention to the implementation of the new regulations. Recently, the Prime Minister signed an official dispatch directing ministries, branches and localities to effectively implement the implementation of these new laws in order to create momentum for socio-economic development and create a favorable investment and business environment for enterprises and people.
Real estate market receives more positive signals from policies (Illustration: Trinh Nguyen).
At a recent event, Mr. Phan Le Thanh Long - Founding Chairman of AFA Group - assessed that the recently passed real estate-related laws have had a very positive impact on the market.
The Land Law creates a transparent corridor, helping to speed up the development of new projects. The Real Estate Business Law clearly stipulates the roles and activities of real estate business individuals, real estate brokers, investors, etc. Thanks to that, the real estate market will no longer be "chaotic".
Assessing the impact on investors, Mr. Long said that the law will shorten project implementation time and reduce financial risks. Investors with sustainable and long-term business strategies and healthy financial structures will have an advantage for development.
Sharing the same view, Mr. Bui Quang Anh Vu - General Director of Phat Dat Real Estate Development Joint Stock Company (stock code: PDR) - commented that with the 3 newly passed laws, especially the Land Law, investors in the market will continue to be screened. Investors with brands, land funds, legal capabilities, and good products will be more stable in the industry. In addition, the 3 laws also create a new playing field for businesses.
Mr. Nguyen Quoc Cuong - General Director of Quoc Cuong Gia Lai Joint Stock Company (stock code: QCG) - assessed that the changes in the three sets of laws greatly support the development of the real estate market. However, the change in land use rights transfer tax makes it difficult to reduce real estate prices. For Quoc Cuong Gia Lai, projects that have not yet finalized the land use rights transfer tax are affected by the new provisions of the Land Law.
After August 1, real estate prices may tend to increase. However, Mr. Cuong said that the general level of the whole market is the same, so Quoc Cuong Gia Lai will do the best it can to limit that.
On a broader perspective, Mr. Lucas Ignatius Loh Jen Yuh - General Director of Nam Long Investment Joint Stock Company - is confident that in the long term, the Vietnamese real estate market will grow strongly. This assessment is based on the fact that Vietnam's urbanization rate has only reached 39%, much lower than China (64%), Malaysia (78%), and Singapore (100%).
The government has begun to be more cautious in approving new investment projects, some cases have been frozen. Mr. Lucas said that this year, in addition to the high-end and super high-end product segments launched on the market, supply has appeared in a number of other segments. Supply has increased strongly while people's demand is increasing.
Business Acceleration
In the context of the real estate market having many positive signals from policies and anticipating the new growth cycle of the market, some businesses have also taken the opportunity to start the process of completing legal procedures and implementing projects.
With Quoc Cuong Gia Lai, General Director Nguyen Quoc Cuong focuses on developing the Marina Da Nang project. This year, the company continues to complete the 1/500 planning adjustment and implement procedures, in time for sales in the fourth quarter of 2024 or the first quarter of 2025. In case Marina Da Nang cannot be implemented, the company will continue to sell assets to recover capital.
Quoc Cuong Gia Lai's project in Da Nang (Photo: Hoai Son).
In addition, the company will also have measures to handle inventory of completed real estate projects such as Quoc Cuong Gia Lai II Apartment - Lot A (HCMC), DeCapella Project (HCMC), Giai Viet Apartment (HCMC) and some other projects.
Mr. Nguyen Van Dat - Chairman of Phat Dat Real Estate Development Company - said that the company has just been assigned an additional 15.8 hectares of land in Bac Ha Thanh Urban Area in Tuy Phuoc District, Binh Dinh Province. To date, this project has been assigned 90% of the land.
According to Mr. Dat, Phat Dat will complete calculating land use fees and complete construction to be eligible for opening sales at the Bac Ha Thanh project in September. With the Thuan An project (Binh Duong), the company will calculate land use fees in October and be eligible for sales in November. These two projects can bring in nearly VND20,000 billion in revenue for the company.
In addition, the company is also focusing on completing the legal procedures for another project in Ba Ria - Vung Tau, expected to record revenue of about 15,000 billion VND.
For Nam Long, the company aims to expand its market in Ho Chi Minh City and its suburbs, in the North such as Hai Phong. However, Ho Chi Minh City and its suburbs are still the core market.
Recently, Nam Long has planned to raise an additional VND950 billion from bonds. Nam Long CEO said that he is trying to raise capital, use capital for business activities and restructure debt. This action is necessary and will strive to accelerate project development, rotate capital faster, and use capital effectively for new project merger and acquisition (M&A) opportunities in the future.
In the coming time, the company said it will learn more about agricultural land funds, explore investment opportunities to acquire suitable companies to create a premise for growth and expand land funds.
Source: https://dantri.com.vn/bat-dong-san/quoc-cuong-gia-lai-va-loat-dai-gia-dia-oc-chay-nuoc-rut-nua-cuoi-nam-20240817100325179.htm
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