With several laws concerning land, housing and property trading coming into effect this August, the market is expected to recover after a long period of stagnation.
However, legal issues and those related to capital access need to be quickly addressed to provide momentum for the market in the future.
In 2023, property was the only sector that witnessed a decline in new enterprises, with about 107 property firms going bankrupt each month.
Most property enterprises face the risk of insolvency, operation suspension, staff layoffs, downsizing and salary cuts.
According to Nguyen The Diep, Vice Chairman of the Hanoi Real Estate Association, the largest bottleneck is policy inconsistency, resulting in low supply compared to demand.
In addition, complex legal procedures that can last 3-5 years hinder the property sector’s growth.
Noting that 70-80% of property enterprises find it difficult to access bank loans, Diep suggested establishing a credit guarantee fund to support the sector.
For his part, Vice Chairman of the Vietnam Real Estate Association Do Viet Chien stated that the goal of building at least 1 million social housing units by 2030 is feasible, thanks to new revisions to the Law on Housing and related laws.
He suggested that investors should be given land rent, use and tax incentives to recover their capital and profit when participating in social housing projects.
