Many positive signals for the real estate market

The real estate market is restarting in the new situation. Illustration photo

The market is still alive

Nguyen Van Dinh, Deputy General Secretary of Vietnam Real Estate Association, Vice President - General Secretary of Vietnam Real Estate Brokers Association, said that from the first Covid-19 wave in the beginning of 2020, the transaction rate hit the lowest level since the crisis in 2013, the absorption rate was only about 10% compared to the same period last year.

Although the real estate market was affected, there was no freezing situation. There were three outbreaks of the pandemic in 2020. When the pandemic was controlled, the real estate market rebounded, which showed that the health and internal strength of the real estate market was very good.

According to a recent report by the Vietnam Real Estate Association, in the third quarter of 2021, although many localities implemented social distancing based on Directive 16 to prevent and control the pandemic, there were tens of thousands of real estate transactions happening through technology applications.

DKRA Vietnam JSC’s market report of Residential Real Estate in HCM City and its vicinity in the third quarter of 2021 showed that amid the social distancing in provinces and cities, online sales have been widely used. The effect, although not as expected as the traditional way of selling, has also contributed to changing sales trends, keeping the market active and not falling into a quiet state. Additionally, new investment models based on technology appeared, attracting many small-cap investors; thereby contributing to project liquidity for investors and the market.

According to Pham Lam, General Director of DKRA Vietnam JSC, the fact that a series of projects have been, and are about to restart is a positive move, facilitating the real estate market to be vibrant again. It is because after a long time fighting the pandemic, many people want to find new investment opportunities. For some people, the pandemic has also raised the need to find new and better living spaces to ensure their health. Moreover, HCM City had few new housing projects for sale. Thus, this will be an opportunity for project developers to launch and sell to attract potential customers.

Need support

Although the market has positive signals, in general, there are still many difficulties and challenges after the pandemic, especially for small and medium-sized enterprises with low financial resources and using bank loans.

Le Hoang Chau, Chairman of HCM City Real Estate Association (HoREA), said that to increase resilience and overcome difficulties caused by the pandemic, real estate businesses do not ask the State for financial support, but for removing obstacles and shortcomings in terms of policies, mechanisms, and administrative procedures.

Recently, the Vietnam Real Estate Brokers Association has requested the Ministry of Construction and relevant departments to consider and submit to the Government to adjust the macro policy to promptly support investment businesses, real estate service businesses, and real estate brokers. In which, it is proposed to issue a Resolution on tax exemption and reduction to support people and businesses affected by the Covid-19. Reduce 50% of income tax for real estate trading floor businesses that arise from May to the end of 2021 to restore production and business. Promulgate policies for banks to reduce repayment schedules, adjust interest rates reasonably, helping businesses reduce cost pressure and cope with difficulties due to Covid-19.

Regarding the support for the real estate market, Nguyen Manh Khoi, Deputy Director of the Housing and real estate development department (Ministry of Construction), admitted that there were some legal inadequacies that need to be improved in the future. The Ministry of Construction is developing and finalizing several Decrees on real estate to submit to the Government. Additionally, the Ministry is proposing to amend the Law on Real Estate Business to improve the law, remove difficulties and obstacles, and facilitate real estate business.

"I think there will be more open policies to meet the needs of the market. Experience has shown that in recent development stages, the real estate market will definitely explode after the law amendment," said Khoi.