The real estate market is facing this double risk
At the second annual Spring Real Estate Forum recently, Mr. Nguyen Do Dung – General Director of enCity commented on the opportunities and challenges of Vietnam’s real estate market from the perspective of planning.
Mr. Dung said that the Vietnamese real estate market has four opportunities: Firstly, industrial real estate is still hot in the Vietnamese market. This is a long-term trend due to the shift from China and Vietnam’s growing infrastructure, abundant labor force.
Second, public investment in transport infrastructure such as Ring 4 and Belt 3 will have a great impact on the real estate market.
Third, this is not only a matter of safety, but also the face of the city. Pandemic and public investment stimulate urbanization in periphery: Legislation opens the door to urban reconstruction 2,000 old apartments need to be renovated in Hanoi and Ho Chi Minh City, equivalent to 500ha of land fund. Thus, we have land banks right in the heart of the big city.
Fourth, the pandemic creates the need for green living. 61% of people want to live near green space and have a garden, 45% want to move to suburbs and less crowded areas.
At the same time, Mr. Dung also added that the real estate market faces three major challenges that will have certain effects on the real estate market: Firstly, legally, the land plots are waiting to be renewed. in Vietnam is still waiting for planning.
Second, we opened to tourism from March 15, but the psychology of Asian people is still afraid. This mentality helps to fight the epidemic well, but it hinders the development of the tourism industry.
Third, the conflict between Russia and Ukraine has made the world economy, which has just been affected by the pandemic, now suffers from broken supply chains and disrupted logistics.
Mr. Nguyen Do Dung said that the real estate market is facing 3 big challenges.
Giving comments on the challenges facing the real estate market, Dr. Can Van Luc – BIDV’s chief economist said: “Supply is not immediately abundant; prices of energy and raw materials increase rapidly (in 2 years). in the first month of the year increased by 2%); The Government directed to control and review the corporate bond market (amended Decree 153); land auctions created an unhealthy ground; real estate prices still increased, raises the question of whether there is an adjustment; Circular 16/TT-NHNN controls the investment of credit institutions in real estate bonds; the real estate tax program”.
Dr. Vu Tien Loc, Member of the National Assembly, Chairman of the Vietnam International Arbitration Center (VIAC) also commented: “The recovery and development of the real estate market is one of the important indicators of the process of real estate development. The general recovery of the economy We are in a situation of double effects, which are very detrimental, the epidemic has not passed, the war has come.Dual risks increase even on two fronts: Legal risks management, market risk”.
Dr. Loc said that to solve this problem, a dual solution is needed. Openness is understood in the broadest sense not as market opening but institutional openness. Opening up to the outside and opening inside should promote institutional reform, free up all resources, and break down all barriers to promote entrepreneurship and promote business processes. This is the most important requirement right in the current context.
In addition, monetary and fiscal support packages. These support packages are very important but always have limited scope, usually short-term impact. The most important support package is the institutional support package, to free up resources and promote entrepreneurship for the long-term development of the Vietnamese economy.
Business and Marketing
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
