The recovery signal of Vietnam’s economy is increasingly clear with the Government’s direction striving to achieve the annual GDP growth target of 7%, opening up many expectations for the recovery and development of investment channels, including the real estate market.
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Becamex Hoa Loi social housing, Thu Dau Mot City, Binh Duong Province.
In the first half of 2024, the real estate market showed positive growth signals in several segments, especially apartments, that are recovering in supply and liquidity. The number of customers deciding to buy real estate for investment and to buy for a living has grown significantly in both the primary and secondary markets. This has helped the absorption rate of many projects to improve slightly.
The industrial real estate segment is starting to become vibrant to welcome the fourth wave of foreign direct investment (FDI) pouring into Vietnam. The apartment segment is also warming up with new price increases and improved liquidity. Land plots are also starting to show signs of recovery as transactions and transfers increase.
Notably, the National Assembly’s permission for three laws related to the real estate market, including the Land Law, Housing Law, and Real Estate Business Law, which took effect from August 1, 2024, months earlier than the regulations, is creating expectations for a more positive recovery of the real estate market in the second half of 2024. The basis for this belief is the promulgation of new (amended) laws that have overcome previous limitations and obstacles with many innovative and progressive regulations that can be applied immediately without detailed guidance documents.
The view of lawmakers is to unify institutional regulations related to land use, avoid overlapping and conflicting laws, and help investment activities and use of land resources to be clear and transparent, aiming at promoting practical capacity. Therefore, when officially coming into effect, the laws will create a new legal corridor, removing most of the “bottlenecks” for the market because 70-80% of the current problems are due to legal reasons.
To ensure effectiveness in the implementation process, related decrees are also being accelerated ensuring quality content, closely following the market. Of course, it still takes enough time to “absorb” the law but the real estate market is forecast to continue to recover sustainably with gradually better results, by the end of the year, the market's recovery process will have clear progress.
For these reasons, the “bright door” opens when real estate becomes a channel that investors consider choosing in addition to other popular investment channels, such as stocks, foreign currencies, gold, and deposits. When the real estate market “warms up” again, it will bring in revenue, promote economic development through positive effects and spread to many other industries and fields.