Experts have also called for continuing market restructuring by diversifying products, especially affordable housing, and addressing the mismatch between supply and demand.

Speaking at a talk on how to remove challenges in the real estate market on February 25, Prof Dr Tran Dinh Thien, a member of the Prime Minister’s Economic Advisory Group, said the real estate market was facing serious problems such as a lack of capital access, credit tightening, and legal bottlenecks.

The market has faced unprecedented hurdles in the past five years with a huge inventory and a sharp drop in liquidity, he added.

It has seen a significant imbalance between supply and demand with an oversupply in the high-end segment but a shortage of affordable housing products, he said. 

Fortunately, the market would have positive signals based on Việt Nam’s economic prospects in 2023, he added.

He attributed to the promulgation and amendment of the three laws related to the real estate market, including the Law on Land, the Law on Housing, and the Law on Real Estate Business.

“The key is to remove the legal and capital bottlenecks, including real estate corporate bonds,” he noted.

It’s good that the Prime Minister has already issued four directives to remove difficulties for the economy, especially the real estate market, according to Thien. 

Dr. Can Van Luc, a member of the National Monetary and Financial Policy Advisory Council, said the Government has focused on improving mechanisms and policies (both short- and medium-term) related to the real estate market, aiming at improving the cash flow, which is important to regain the confidence in the market.

Removing roadblocks for the corporate bond market is also important to unlock capital sources, Luc said.

“The decree amending Decree 65 issued in September 2022 on corporate bonds is being urgently revised, which is expected to remove difficulties for the corporate bond market.” 

The Government has also taken measures such as rescheduling, deferring debt, tax, and land rent for real estate businesses, he added.

The Ministry of Construction has recently proposed a credit package worth around 110 trillion VND (4.6 billion USD) similar to the 30 trillion VND package implemented in the 2013-2016 period to finance social housing projects and housing projects for workers, he said.

Dr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association, said: “The real estate market will become warmer by the third quarter of 2023 as the government has made drastic moves to create conditions to help the market develop sustainably.”

The government has also established a working group to propose solutions with ministries and local authorities, and will review and work with localities, projects, and investors to remove bottlenecks, he added.

Speaking at a recent meeting, economist Vo Tri Thanh said there remained high hopes this year for the real estate market, especially in segments of real estate tourism, industrial parks, and retail, following drastic actions of the Government. 

Once the Land Law and Law on Real Estate Business are finalised, they would provide opportunities for investors to come back to the market, he added.

Experts also recommended the Ministry of Finance implement measures to develop the corporate bond market transparently, safely and sustainably. 

The event aimed to discuss ways to address challenges in the real estate market and promote its sustainable development./. VNS