The real estate market has passed the "bottom", but difficulties still surround.

According to the report of Ho Chi Minh City Real Estate Association (HoREA), thanks to the strong participation of the Government and ministries, the real estate market has passed the "bottom".

However, overall, the real estate market is still very difficult, but the level of difficulty tends to decrease over time, each month is better than the previous month, each quarter is better than the previous quarter.

Mr. Le Hoang Chau, Chairman of HoREA, said that the recovery is clearly showing in Ho Chi Minh City. If in the first quarter of 2023, the real estate market in Ho Chi Minh City grew by negative 16.2%. By the first 6 months of 2023, it will continue to grow by negative 11.58%.

By the end of the third quarter of 2023, although the growth was still negative at 8.71%, it showed signs of recovery. After 09 months, the difficulty level of the real estate market decreased by 42.3% compared to the first quarter of 2023.

The real estate market has come a long way, but difficulties remain, picture 1 — The real estate market has passed the "bottom", but difficulties still surround it. (Photo: MH)

Mr. Chau said that in the first 9 months of 2023, the housing supply in Ho Chi Minh City had 13 commercial housing projects eligible to mobilize capital with 15,020 units, an increase of 1.37 times over the same period in 2022.

Of which, the high-end housing segment has 9,969 units, accounting for 66.37% (higher than the national rate of 58%), the rest is the mid-range housing segment with 5,051 units, accounting for 33.63% (higher than the national rate of 26%) and the situation of no affordable housing continues, and there is no more social housing.

The real estate rental market, including rental housing, rental offices, commercial and service premises, is still facing many difficulties. In the dark picture of the real estate market, there is still a “bright spot” which is the industrial real estate market.

“The above drastic measures of the Government and the Prime Minister have initially promoted and created very positive changes that have spread from ministries, branches to localities, cadres, civil servants, and public employees, and inspired the business community, people, and investors to overcome difficulties and support market confidence,” said Mr. Chau.

The Chairman of HoREA said that although the real estate market is still facing many difficulties, there is every reason to affirm the prospect of recovery and continued growth in a safe, healthy and sustainable development direction due to the driving forces.

Firstly, Resolution No. 18-NQ/TW dated June 16, 2022 of the Central Executive Committee directed the completion of amendments to the Land Law and related laws to ensure consistency and uniformity, and competent state agencies are making efforts to remove "legal obstacles" which are the biggest obstacles of the real estate market.

Therefore, with the efforts of the National Assembly considering amending relevant Laws, along with the efforts of the Government, Ministries and branches to immediately amend some "inadequate" regulations of sub-law documents, it will create momentum for market growth.

Second, the "total demand" for housing to meet the real needs of society is still very large, especially the demand for affordable housing and social housing for the majority of middle-income and low-income people in society is very large.

Third, the middle class continues to grow steadily, despite falling incomes across the population.

Source