An uptick in the Vietnamese real estate market is expected as early as Q1 thanks to improved government regulations and economic growth forecasts, according to Vietnam Real Estate Association.
Capital shortages, legal bottlenecks, and inconsistent regulations have plagued the property sector as of late. Ill-advised lawmaking and cumbersome administrative procedures have combined to create an environment in which real estate rules are ineffectively enforced and loopholes are easily taken advantage of, according to the association.
According to association president Le Hoang Chau, 70% of the difficulties facing real estate projects spring from legal bottlenecks. But he said this would no longer be the case when amended laws on land, real estate trading, and housing are adopted in late 2023. The new laws will become pillars of stability for the market, he said.
Economist Can Van Luc stated that the recovery of the local real estate market next year would be grounded in the fact that countries around the world would no longer be raising interest rates as much, which would help alleviate pressure on foreign exchange rates.
The potential for growth in the Vietnamese real estate market could be high over the next few years. The country’s stable economic foundation, rapid urbanization and shifts in production from China to Vietnam are major contributors to this potential. Foreign investors are keeping their eyes on segments of the Vietnamese property market, he said, adding that projects next year would be more suitable to buyers’ budgets.
