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Will the legal "race" make the Vietnamese real estate market exciting again?

Different from the period of "selling young rice" like the golden age of the real estate fever, now, real estate businesses in the South choose the form of "making sure to eat well and lasting longer", racing to perfect the solution. Project management to launch products to market. Will this "war" of investors make customers feel secure in depositing money, helping the real estate market quickly return to excitement?

Interest rates fall, real estate growth is expected

As of November 2023, up to 16 banks have lowered deposit interest rates to a record low, of which 1-2 month terms decreased to 2.6%/year. This move also led to a sharp decrease in loan interest rates, creating especially attractive opportunities and conditions for those wishing to buy a home.

Vietnamese real estate market
Photo: Freepik

Amidst the context of many fluctuations in the world economy, Vietnam's economy is showing many positive signs and bright spots.

In the first 10 months of 2023, the average CPI increased by 3.2%; Foreign investment in Vietnam increased by 14.7%; The trade balance is estimated at a trade surplus of 24.61 billion USD and FDI capital is flowing strongly into Vietnam.

At the same time, according to data from the Foreign Investment Agency (Ministry of Planning and Investment), as of October 20, the FDI investment capital in Vietnam reached more than 25.76 billion USD, an increase of 14.7% compared to the previous year. same period; Disbursement is estimated at 18 billion USD and continues to be the investment destination chosen by many foreign investors

In particular, lending interest rates have been on a sharp downward trend recently as the State Bank has continuously adjusted operating interest rates 4 times in the first 6 months of the year, with a decrease of 0.5- 2.0%/year.

That creates conditions for credit institutions to access capital at lower costs, thereby reducing lending interest rates to support customers.

Faced with the question of banks' deposit interest rates falling to record levels and where the cash flow will go at the end of the year, experts say that savings cash flow will shift to production, business, and service activities. people's demand for goods at the end of the year, in which the trend of investors is shifting to other investment channels such as real estate, stocks, gold...'s Vietnamese real estate consumer psychology report (CSS) in the second half of 2023 surveyed by this unit also shows that 61% of people still want to buy real estate within the next year. shows that demand continues to increase.

However, the lack of clean land fund, financial problems related to land, difficulty accessing capital, and legal problems... lead to a sharp decline in supply, projects with legal and infrastructure and complete construction progress is also increasingly scarce.

Will help investors feel more secure

In addition to interest rates being adjusted to a stable level, credit opening up, and preferential sales policies of investors also contribute to solving financial problems for home buyers, promoting the real estate market. more vibrant.

Amid the complicated periods of fluctuations in the real estate market from the second half of 2022 until now, the market is witnessing many positive signals after the screening period, as well as changes in real estate ownership trends. investor's real estate.

Although price and location are still the top factors of concern for real estate buyers at present, buyers with real housing needs or investors with long-term vision tend to become more and more strict with their choices. In particular, legal safety factors, existing infrastructure, and types of real estate products that generate cash flow are always of special interest to investors at the current stage.

When the market has abundant supply but low demand, investors no longer launch products fragmentarily and "sell young rice" like before, but instead focus on completing the project's legality to ensure safety for investors. client.

“Doing a project if the legal documents take 3-5 years is difficult to make a profit. That is also the reason why business investors have to run with lights in front of cars if they do not want to suffer heavy losses. Every race requires the cooperation and joint efforts of the State and businesses to succeed" - Mr. Thanh said.

For example, despite introducing the product to the market in just a few months, as of November 17, 2023, the FIATO City project (Nhon Trach City, Dong Nai Province) developed by Thang Long Real Group was completed. was granted a construction permit and started the project.

Another project that has just completed its legality and is being offered for sale to customers is Bao Vinh Residences (Long Khanh City, Dong Nai Province). This is a project of Thanh Thang TV and Service Company Limited, along with the RKT Group distribution agency system.

In addition, Phu Dong Group, a real estate group with pioneering criteria following the safest trend for buyers, also launched the Phu Dong Sky Garden apartment building (Di An city, Binh Duong province), when projecting The project is almost complete for the entire building block.

Mr. Doan Chi Thanh - Director of Hoang Anh Holdings commented that in the past, investors and real estate trading floors focused on implementing sales but neglected to pay attention to legal factors because they thought would be deployed in parallel, but when there were problems, the legal stage will be "turned off", causing customers to lose confidence in the market (for products that are not fully legal).

Mr. Thanh said that this is one of the main reasons why the real estate market slowed down in the past, in addition to factors such as credit, epidemics, inflation...

During this period, to overcome and create trust for customers with their products, investors focus on completing the legal and construction stages... to attract buyers.

Shortly, projects with complete legal status and stimulating sales policies will be the decisive factor for quickly deploying sales and creating confidence in the market, and the buying phase will also be over. selling "promise" by investors who have no potential and take advantage of it

Commenting on the current situation, Mr. Thanh said, that for investors to speed up the legal progress, the authorities also step up support to help businesses overcome difficulties because if they wait too long, the business will be Unable to bear bank loan interest.

(Thời báo tài chính)


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