Companies upbeat about Vietnam's property market

A number of companies have trust in Vietnam's property market and will witness more positive changes soon because profit streams from production and business usually run into real estate in the last quarter of the year and public investment and FDI often grow at this time. Remittances flowing into the country are expected to hit $14-16 billion this year, which is cash that helps the market gain in liquidity at the end of the year.

"Picture" of the real estate market nowadays

 A number of difficulties and obstacles have hindered the launch of new projects. It is predicted that these things can not be declined rapidly, so the new supply in the 4th quarter of 2022 will keep decreasing by about 2,500 units compared to this quarter.

Still, the unsold inventory was estimated at VND273.37 trillion from 45 major property developers in the first nine months, accounting for more than half of their combined asset value.

In addition, companies also recall that the biggest problem is legal, accounting for 70%. The second biggest problem of the market is administrative procedures.

The credit growth limit (room) has been continually Hot when the State Bank of Vietnam still kept the room at 14% for the whole year 2022. Particularly, from April to early August this year, many companies' customers could not access credit capital because the bank announced that it was "out of supply".

Proposed tackling the challenges of Vietnam's property market

Vietnam's credit tightening for too long led to a risk to the real estate market. The capital bottleneck property developers inflows into real estate will boost the imbalance between the supply and demand of real estate (a lack of supply, demand cannot decrease. Property projects may be uncompleted, bad debts will rise accordingly, and stocks fell, leading to a decrease in economic recovery momentum.

Vietnam's real estate market. Picture

Le Hoang Chau proposes: "The State Bank of Vietnam can also take into consideration increasing its credit quota by 1 or 2% points for the remaining weeks in this year as a boost to the industry". And facilitating investors who are not professionals to buy bonds under a certain cap. Those actions will also reduce the "thirsty" capital of companies. 

Tan Long Land is the official distributor of a series of high-end real estate projects from reputable investors such as Vin Group, Sunshine Group, Tan Hoang Minh, Ciputra... All details About the project will be continuously updated by us to customers.

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