Vietnamese real estate increasingly proved their bravery despite it met a lot of difficulties and thorns. Let’s find out together!
Real estate is one of the fields that are currently being concerned in our country. So how can we launch the perfect products to customers? Our country has taken specific measures to remove the existing situation.
The status of the real estate market in Vietnam today
As we know, the real estate market is the place where takes place the buying, selling, leasing, mortgaging, transferring the ownership,… It goes through the process of formation and development including four stages: initialization, centralization, monetization, and financialization. Due to the characteristics of each economy, the nature and timing of each stage may vary. For developed economies, the real estate market has developed through all four periods, so assets have been securitized at a very high rate. For Vietnam, this market is being evaluated in the period of monetization.
In a normal state, cash flow in real estate transactions is steady, continuous between buyers and sellers. However, when these purchases are not made or at a very low level, they will create a freeze on the market and the Vietnamese real estate market will go through these states during the process of development.
Up to now, the real estate market of our country has experienced many different advantages and disadvantages. From 2011 to now, the market has been facing many problems and difficulties. It can be said that the real estate market is almost motionless with a huge inventory. Specifically, at the end of 2013, the real estate market is still in stock nearly 30,000 apartments and more than 1 million sqm of land with the value up to $ 500,000.
The current concern of the real estate market is the loss of investor trust in the market, the lack of transparency as well as the loose in the monitoring mechanism of investment projects and virtual psychology of the super-sustainable sustainability leading to excessive credit expansion in the past has backfired that threatened the sustainable development of commercial banks in particular and of the economy in general.
What are the solutions to the real estate market in Vietnam to overcome the current situation?
Spite of meeting many difficulties, we cannot deny the potential of the real estate market in our country. These are:
The legal and economic system of our country has been increasingly improved, creating a favorable corridor for market transactions through specific regulations on the right to buy, sell, lease or mortgage the joint venture capital by real estate. Moreover, interest rates on deposits and loans decreased that are also positive dynamics of cash flow to the real estate market.
Potential demand from foreigners and overseas Vietnamese is quite large. Specifically, FDI inflows into Vietnam increased, with real estate capital accounting for 14.2% of the $ 23 billion committed in 2013.
Currently, the real estate market in our country has shown good signs but we cannot be subjective. We need to make synchronized solutions for the market:
- It is necessary to continue to perfect and implement flexible support policies, stick to and meet the needs of the real estate market. At the same time, it needs to create a transparent environment for regulators to regulate themselves following market rules.
- It is necessary to adjust the sectoral planning in the long term, adjust the local licensing process and avoid rampant licensing project which does not match the market demand and economic conditions of the region.
- Licensed projects should be regularly monitored by departments, avoiding illegally using, leasing and transferring land.At the same time, it is necessary to carry out the withdrawal or suspension of delayed projects or investors who are incapable of implementing the project.
- It is necessary to stabilize the macroeconomic policies in order to consolidate the confidence of the participants, in which interest rate plays an important role in motivating the flow of money into the real estate market.
Investors need to change their mindset and strategic vision for long-term cash flow.
Vietnamese real estate promises to make further breakthroughs. Let’s do it with us!
You are reading the article “How Did The Real Estate Market In Vietnam Overcome The Difficulties?” in the section Real Estate on the website: www.realestatevietnam.com.vn
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