Policies taking shape for real estate market overhaul
Policies taking shape for real estate market overhaul
The Vietnamese government’s new policies on land, market transparency, taxes, and bond issues are expected to help the real estate market in 2023 to pass through the current gloomy winter and help the market become more stable.
In the past year new resolutions and decrees have been issued related to policies for the real estate market, which are hoped to officially start impacting the market in 2023.
Resolution No.18-NQ/TW, on continuing to improve the effectiveness of land management and use, and create a driving force to develop Vietnam to become a high-income developed country, has defined the specific goal to complete the amendment of the 2013 Law on Land and a number of related laws, ensuring uniformity and consistency.
In December, the government also issued Resolution No.156/NQ-CP on solutions to promote the real estate market safely and sustainably; and Decision No.1435/QD-TTg the previous month set up a working group on reviewing and removing difficulties in implementing real estate projects for both localities and businesses.
Also last month, the prime minister signed Official Letter No.1164/CD-TTg on removing difficulties for the real estate market and housing development. The prime minister requested a review and proposals to amend legal regulations which were overlapping and inadequate, causing obstacles in the implementation of real estate projects.
The prime minister also requested the State Bank of Vietnam to direct, coordinate, and guide localities and commercial banks to lend and disburse quickly, with the correct focus and subjects for loans and disbursements.
Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, said that these timely directions will create fundamental changes to restore and develop the market.
“With these moves, we see that the psychology of businesses and the market is gradually recovering and is more confident to overcome this difficult time. Real estate and related businesses are actively restructuring customer segments, products, prices, and payment terms and methods to be more attractive for end-users,” he said.
Associate professor Tran Dinh Thien, former dean of the Vietnam Economics Institute, said that 2023 will still be tough, but opportunities are also out there, basing this on the fact that the Vietnamese economy has been developed in a stable manner and leads the ASEAN community in many aspects. “However, the real estate market must reduce speculation and restructure investment flow which should be towards affordable properties to serve the majority of the population first, rather than luxury segments,” he said.
Phan Duc Hieu, a standing member of the National Assembly Economic Committee, forecast that the market will have many positive signals based on Vietnam’s economic prospects in 2023.
“The prerequisite is to soon remove the legal and capital bottlenecks, including real estate corporate bonds, and even to have strong solutions to stimulate demand,” said Hieu.
