Speaking at the 2024 Real Estate Market Forum held this morning (January 5), Mr. Hoang Hai - Department of Housing and Real Estate Market Management (Ministry of Construction) - said that in 2022 and especially from the second half of 2022 until now, the real estate market has encountered many difficulties.
Purchasing power and liquidity have decreased sharply. The lack of supply is accompanied by an unreasonable housing product structure. There is an excess of high-end products while there is a shortage of affordable housing for low-income earners in urban areas.
Enterprises face many difficulties in accessing credit loans, issuing bonds and mobilizing capital from customers. The number of completed and newly approved commercial housing projects has decreased.
According to Mr. Hai, since the beginning of 2023, the Government and the Prime Minister have given strong directions to support the real estate market. At the same time, ensuring the synchronization and connectivity of the legal system related to land, construction, housing, real estate business, securities, credit and reducing the time to handle administrative procedures.
An apartment project under construction in Hanoi (Illustration photo: Ha Phong).
Notably, with the focus of authorities at all levels and localities, up to now, in the period of 2021-2030, nationwide, 470 social housing projects for low-income people and industrial park workers have been completed and are being implemented.
Mr. Hai also said that the real estate market has passed the most difficult period and it can be said that the first quarter of 2023 is the "bottom". Overall, the real estate market is still very difficult, but the level of difficulty tends to decrease over time, the next month is better than the previous month, the next quarter is better than the previous quarter, clearly shown in the real estate market of Ho Chi Minh City.
"For the policies and solutions of the Government and the Prime Minister to achieve the expected results, it also requires time, participation, and synchronous coordination of all levels and sectors, and the consensus and support of the business community and the people. This is considered an urgent and important task that needs to be focused on solving," Mr. Hai emphasized.
The market recovered clearly in the third quarter of this year.
A representative of the Market Research Team of the Vietnam Association of Realtors (VARS) said that 2023 is the year when the "disease" of difficulties in the Vietnamese real estate market will break out, after a long "incubation" period and showing signs of "onset" since May 2022.
The signal has improved in the second half of the year, but overall, 2023 is a difficult year for the real estate market in general, and brokerage activities in particular, when thousands of real estate brokers lost their jobs and quit their jobs. Up to now, only about 20% of real estate brokers are still operating.
Regarding the general market situation, the supply in 2023 shows a shortage and poverty when the total supply in 2023 only reaches 55,329 products. Although this supply increases by 14% compared to 2022, it is only 32% compared to 2018, the time before the Covid-19 pandemic.
It is noteworthy that very few new projects are approved, while thousands of unfinished projects are "shelved" due to legal problems, and a large number of projects are stalled due to lack of capital, which is the cause of the above situation.
Assessing the 2024 market, VARS forecasts that in the first half of the year, the market will continue to maintain good signals from the end of 2023, but it will not be until the end of the third quarter of 2024 that the recovery will be clearly demonstrated.
The market is recovering, so in 2024, the real estate industry will welcome the return of about 30-40% of brokers. Along with that, large-scale opening programs and massive media campaigns will take place more frequently and continuously.
Mr. Nguyen Van Dinh - Chairman of VARS commented that 2024 will have many intertwined opportunities and challenges. In particular, positive movements in both total supply and total demand are recorded thanks to planning information. The participation of investors in the "race" to develop affordable housing and social housing will also gradually narrow the gap between supply and demand.
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