Warning of ‘fake and contraband’ destroying the real estate market

Challenges

At the 2nd Annual Spring Real Estate Forum, Dr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association, assessed that the Vietnamese real estate market faces many difficulties. Accordingly, legal obstacles are certain obstacles to the above supply market. The market also appears a lot of “fake goods and smuggled goods”, such as unsuitable subdivision of real estate, price spikes with the potential for bubbles.

According to Mr. Dinh, from the beginning of 2022, the market is hot in all regions, transactions are vibrant, businesses are excited. In the long term, real estate still faces a crisis, inflation pushes up housing prices, making the market increasingly harsh. Legal problems need to be resolved so that the business has the opportunity to develop.

GS. Dr. Hoang Van Cuong, Member of the Finance and Budget Committee of the National Assembly, assessed that the crisis from the Covid-19 epidemic brought disadvantages, but also realized that real estate must develop healthily and sustainably. With large-scale projects, of reputable enterprises, there are more opportunities. The market in 2022 has many opportunities, but not everyone can grasp the opportunity, it depends only on professional businesses and investors.

According to Mr. Cuong, when real estate goes down, it will go up, the recent periods have proven that every 4-5 years is a growth cycle of the market. Looking at the prospect of the market, it is necessary to look at the long-term in the next 3-5 years, which is relatively stable and developed.

Real estate 2022 still has many challenges

Mr. Nguyen Do Dung – General Director of enCity, real estate has 4 opportunities. Specifically, 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.

Public investment in transport infrastructure such as Ring 4 and Belt 3 will have a huge impact on real estate. Third, the pandemic and public investment stimulate urbanization in the periphery: Legislation opens opportunities for urban reconstruction. 2,000 old apartments need to be renovated in Hanoi and Ho Chi Minh City, equivalent to 500 hectares of land fund.

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.

Legal troubles

Dr. Vu Tien Loc acknowledged that the legal system on land and real estate is currently the biggest bottleneck of the Vietnamese economy, while the exploitation of land resources and the promotion of urbanization are the main sources of income. is also the most important driving force of the industrialization process. However, these limitations are creating bottlenecks that we have not yet resolved.

Experts predict the real estate market in 2022

Specifically, amendments to the Land Law are temporarily halted, and solutions in the field of tourism real estate have not been resolved. Therefore, solving these bottlenecks is becoming an issue of prime importance.

“Recently, we have revised 8 Laws related to construction investment, but in reality, it is just “salt out of the sea”, has not solved much for the bottlenecks related to the real estate market today. “, said Mr. Loc.

Also related to legal issues, Assoc. Dr. Nguyen Quang Tuyen, of the Law University, suggested that it is necessary to focus on solving many different groups of issues such as adding regulations on State management in the Law on Real Estate Business 2021 on real estate business in general and tourism real estate business in particular, showing the types of real estate investors that issue real estate stocks and bonds on the stock market.

Another point is to add regulations on State management in the Law on Real Estate Business 2014 to closely integrate real estate investment and business activities in general and tourism real estate in particular with the issue of real estate investment. environmental Protection.

At the same time, develop criteria and green tourism real estate products; establish a synchronous and uniform mechanism on preferential and incentive policies for real estate investors in creating green tourism real estate products or integrating the circular economy model in the tourism industry. tourism real estate investment.

In addition, reviewing and amending the provisions of the Law on Tourism 2014, the Law on Real Estate Business 2014, relevant laws and guiding documents on tourism real estate business, insurance. ensure consistency, compatibility, synchronization, contributing to creating a legal framework for tourism real estate investment activities smoothly, healthy competition, openness, transparency and equality among entities. participate in the tourism real estate market segment.

Meanwhile, Dr. Can Van Luc suggested, real estate businesses need to actively learn and approach the Recovery Program; green recovery, green growth because green real estate is the trend, digital transformation, anticipating new trends related to changing customer behavior; Adaptation, change management, risk management… are inevitable.

Duy Anh