According to construction experts, factors such as limited land fund, scarce supply, high selling prices and the project licensing process are still being tightened... that the real estate market is facing. will contribute to investor purification in the last 2 quarters of 2022.
Facing 4 great difficulties
Vietnam's real estate market is witnessing a large demand and strong growth momentum coming from rapid urbanization with an increasing population rate. However, market barriers such as legal procedures, land fund and investment capital are also leading to a mismatch between supply and demand.
According to Mr. Neil MacGregor, General Director of Savills Vietnam (a leading corporation providing real estate services in the world), in the two largest cities of Vietnam, Hanoi and Ho Chi Minh City, are witnessing the demand for real estate services. search for large housing and housing, along with rapid urbanization and golden population rate, but due to supply not keeping up with demand and the need for practical solutions to solve this situation, housing prices increased sharply compared to real value, exceeding the income level of the majority of people.
The real estate market at the end of the year purifies investors.
Summarizing the challenges that the real estate market is facing, Savills Vietnam identified four major difficulties. Localities are lacking in master planning. In 2020, then Prime Minister Nguyen Xuan Phuc approved the "Task to prepare the national master plan for the period of 2021 - 2030, with a vision to 2050", but so far, the progress of planning for the period 2021 - 2030 quite slowly, until the end of May 2022, only 7/111 plannings have been decided and approved. The reason is due to the lack of clarity on planning management of 1/10,000, 1/2000, 1/500 between the authority of the Ministry of Construction and the People's Committees of the provinces and cities.
In addition, many laws related to land, housing, and real estate overlap, such as the Land Law and the Construction Law, the Housing Law, the Investment Law and the Real Estate Business Law, which causes difficulties in the process. submit applications for approval to domestic and foreign investors. Meanwhile, the Law on Planning was passed in 2017, but the implementation process encountered many problems due to inadequacies with reality.
On the other hand, the shortage of land fund in big cities, leading to the risk of market bubbles, especially the situation of land speculation is taking place in many localities, the housing market price is not oriented towards the final buyer. . This will make society and the economy develop unhealthy in the long run and land bank in big cities is easily manipulated.
In addition, the tightening of real estate credit and strict control of corporate bond issuance also caused the market to stagnate due to the lack of investment cash flow, the development of two unfinished or new projects.
Faced with this fact, the view of Savills Vietnam, as well as that of many experts and state management agencies, should soon amend and supplement laws related to reality, in order to avoid the overlap between regulations. various provisions of the legal framework, thereby assisting the local authorities in the project approval process and ameliorating the shortage of land fund for housing development; build a public and transparent land auction process on the basis of reference to public land auction processes in the country with an effective way and increase the supply for the affordable segment, meeting the real needs of home buyers to stay; At the same time, it is recommended that real estate businesses diversify their sources of investment capital.
Investor purification
According to Mr. Nguyen Van Dinh, Vice Chairman of Vietnam Real Estate Association, the real estate market in the first half of 2022 faces many difficulties in terms of investment capital, limited land fund, with a state of "up and down" constantly changing. change across the country. The supply of goods is scarce, the demand is large, when the supply exceeds the demand, it will lead to the price of real estate being pushed up. This is the story in many localities, especially Hanoi and Ho Chi Minh City, where there have been no new affordable housing projects recently. This fact will continue in the second half of 2022, when credit sources into the real estate market are tightened, but this will help purify investors.
According to Mr. Nguyen Quoc Anh, Deputy General Director of batdongsan.com.vn (Vietnam's No. 1 real estate service information channel), in the first 6 months of the year, while the number of news posted for real estate sales and purchases tended to increase by 22% compared to the same period last year. During the same period, the demand for housing decreased sharply. This shows that the market is in a phase where trading is not as easy as before. One of the main reasons is the limited capital flow into the real estate sector from the beginning of 2022 until now, when both bank credit and corporate bond issuance are controlled. However, this will eliminate retail investors, snapping, creating waves ...
Faced with the above fact, representatives of real estate companies with current brands all believe that the challenges the market is facing will strongly purify investors in the direction of more sustainable and healthy development. Only real investors with financial resources and sustainable development will continue to exist, while investors who depend on loans without a sustainable development process will face many difficulties. The last two quarters of 2022. The market is forecasted to focus on products that meet real needs rather than speculation and surfing.
Regarding the buying trend at the end of the year, according to real estate experts, the preferred segment for investors will be land plots next to industrial parks, townhouses near the center and apartment projects. The market is in the purification stage, so the safe investment option will prevail, which means that investors will pay attention to clear legal products, good liquidity and can be used immediately to live or live. business operators.
