Friday, July 19, 2024 6:19:29 PM - Markets open
VN-INDEX 1,264.78 -9.66/-0.76%
HNX-INDEX 240.52 -1.97/-0.81%
UPCOM-INDEX 96.78 -0.84/-0.86%
Real estate market won’t recover until late 2024: experts
Vietnam News - 3/14/2023 9:57:56 PM
 (0 ratings. You must sign in to rate.)
Despite the Government efforts to remove challenges facing the real estate market, it won’t prosper until the end of next year, experts warned.
 
Speaking at a forum last Friday, Nguyễn Quốc Hiệp, chairman of the Việt Nam Association of Construction Contractors, said the market would continue facing prolonged hurdles such as a lack of access to capital, credit tightening, legal bottlenecks and delays in bond payments.
 
Decree 08 recently issued by the Government aimed at removing difficulties for the corporate bond market is not effective enough to regain investor confidence in the market, he said.
 
“The decree, which allows issuers to extend bond terms by up to two years, only helps prevent the market from collapsing but it does not actually protect the rights and benefits of bondholders.”
 
A huge amount of bonds are going to mature this year and next year, putting great pressure on issuers, mostly property developers, as they now face liquidity problems and cannot issue new bonds to restructure debt, he noted.
 
He said it was vital to develop a long-term legal basis for corporate bond issuance in order to build a sustainable capital market for the real estate sector.
 
Đỗ Viết Chiến, deputy chairman of the Việt Nam Real Estate Association, said property firms must be well prepared as the market would continue facing obstacles in the coming time.
 
A recently set up task force aiming to remove difficulties for the market now faces issues beyond their authority in terms of provisions of laws, he added.
 
The task force should have more power to resolve the challenges faced by property firms, he said. "It should also work directly with real estate firms to assist them in addressing their issues."
 
Once the Law on Land, the Law on Housing, and the Law on Real Estate Business are finalised, hopefully they will provide opportunities for investors to come back to the market, he said.
 
Dr. Nguyễn Văn Đính, deputy chairman of the Việt Nam Real Estate Association, said the market has faced unprecedented problems in the past five years with a large inventory and a sharp drop in liquidity.
 
The market has seen a huge imbalance between supply and demand with an oversupply in the high-end segment but a shortage of affordable housing products, he said.
 
He recommended property developers focus on affordable housing and social housing projects in order to address the mismatch between supply and demand.
 
It’s vital to have specific regulations to implement the VNĐ120 trillion support package to finance social housing projects and housing projects for workers, he said.
 
Bond issuers must develop specific debt repayment plans and actively negotiate with bondholders in order to regain their confidence in the market, he added.
 
The Government has already issued four directives to remove challenges for the economy, especially the real estate market.
 
It has also taken measures such as rescheduling and deferring debt, tax, and land rent for real estate businesses.
 
However, experts have urged property firms to take efforts themselves first instead of replying too much on Government support measures. — VNS
 
Read original article here
Newer News
18/07 Land Law to create investment waves in various sectors: Experts
16/07 New legal framework to create advantages for foreign real estate investors
12/07 Villas in Hanoi see price increases, although the real estate market is still slow
08/07 Early enforcement of real estate laws - a catalyst for the market recovery
05/07 Real estate market to ‘prosper’ from 2025: Batdongsan
05/07 HCM City real estate revenue up 6% in H1
02/07 Two Vinhomes projects granted permission to sell homes to foreigners
02/07 Hoà Vang district offers ready-cleared land to investors
29/06 Property transactions of individuals might be limited
15/06 Property market sees many driving forces for growth
Older News
06/03 HCM City condo supply down in 2023
03/03 HCM City to remove challenges facing 116 property projects
16/01 Experts call for favourable policies to help real estate
16/12 Domestic real estate market boom unlikely in 2023
16/12 Domestic real estate market boom unlikely in 2023
16/12 Interest rate for social housing loans to be raised to 5% in 2023
07/12 MoF to raise taxes on land and housing
07/11 Real estate market must be digitalised
03/10 Banking, real estate not ideal options for short-term investors
13/09 Industrial real estate likely to pick up in remaining months
 
Newsletter Signup
Top Stories
VCCI recommends mineral mining rights be granted through auction and bidding
Central bank works to raise interbank rates and ease forex market
Inflation a concern following salary increases
National Council for Sustainable Development established
Việt Nam, Cambodia look forward to $20 billion trade
Market Update
Last updated at 3:05:01 PM
VN-INDEX 1,264.78 -9.66/-0.76%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.