Real estate in 2024: Businesses need to increase supply and reduce selling prices

After a relatively “harsh” year for the market as well as real estate businesses, the market has now recorded many positive signals regarding new policies, planning mechanisms and capital sources. Many experts believe that this is an opportunity for real estate businesses to transform and revive the market in 2024.

The important thing now is that real estate businesses need to seize the opportunity and join hands to "paint" a brighter picture of the market by sharing difficulties together, restructuring products and reducing costs even more, approaching the ability of buyers to promote the real estate market to recover soon and develop sustainably!

Seize the opportunity to transform

Sharing about the opportunity to revive the real estate market in 2024, Chairman of the Ho Chi Minh City Real Estate Association Le Hoang Chau said that recently, the Government and central ministries and branches have held many meetings and proposed many solutions to remove difficulties for the market.

Notably, on the morning of January 18, 2024, at the 5th Extraordinary Session, the 15th National Assembly passed the Land Law (amended). This is a law that has received many opinions from experts, associations, businesses and more than 12 million opinions from people nationwide; in which the law has added many important new points on land prices, land recovery...

The passage of the Land Law (amended) together with the Housing Law and the Real Estate Business Law (amended) meets the requirement of synchronously perfecting policies and laws on land management and use in accordance with the development institutions of a socialist-oriented market economy.

In particular, the announcement of new planning by many provinces and cities (such as Hai Phong, Hai Duong, Phu Tho, Da Nang, Quang Ngai, Can Tho, Ninh Thuan, An Giang, Ca Mau, Ben Tre, Kon Tum...) has also opened up opportunities for businesses and investors to participate more actively in the real estate market.

Meanwhile, according to the Ministry of Construction, despite positive signals in terms of policy mechanisms, planning and capital sources, the real estate market will still face many difficulties and challenges in 2024. This requires real estate businesses to join hands to share and stimulate the market.

Representatives of the Vietnam Real Estate Association (VNREA) also said that real estate businesses need to take immediate concrete actions, reduce housing product prices, not keep prices high, and increase discounts, promotional policies, after-sales services, and stimulate consumer demand in the real estate market to create cash flow and liquidity.

In addition, real estate corporations and businesses also need to shift their investment to the affordable housing segment, with prices suitable to people's income, in order to join hands to remove difficulties for the market to recover quickly and sustainably.

Sharing the same view, Dr. Can Van Luc - Chief Economist of BIDV, member of the National Financial and Monetary Policy Advisory Council, emphasized that in the current situation, real estate enterprises need to show more determination in restructuring segments, accepting price reductions and diversifying capital sources to reduce risks; reduce financial leverage, and limit scattered investment.

“Along with that, businesses need to focus on investing in completing unfinished projects, especially social housing projects, worker housing projects, and affordable housing projects to gradually increase liquidity,” Mr. Luc recommended.

What scenario for the market?

According to the forecast of the Vietnam Association of Realtors (VARS), 2024 will be the final year of the real estate market's "overcoming obstacles". Although it is unlikely to "explode", the market will gradually stabilize.

It is forecasted that in the 2024-2025 period, bottlenecks in real estate project approval will be resolved, and the market will recover when the Housing Law, Real Estate Business Law, and Land Law (amended) are implemented on schedule and will come into effect.

According to Associate Professor - Dr. Nguyen Kim Chung, former Deputy Director of the Central Institute for Economic Management, if there is no breakthrough in the policies affecting the market in 2024, real estate will continue to recover slowly. Therefore, for the market to recover quickly and develop sustainably, there must be 3 supporting factors, including increased foreign investment in the market; completion of sub-law documents of the above laws; and loosening of financial and monetary instruments.

On the side of the Ministry of Construction, Director of the Department of Housing and Real Estate Market Management Hoang Hai said that the new regulations of the laws related to the real estate market that have been passed will be a big step forward in policy, creating an important legal framework, completing the mission of reforming shortcomings after a long period of application.

In the coming time, the Ministry of Construction will focus on implementing important solutions such as: Focusing on removing policies and promoting the safe, healthy and sustainable development of the real estate market; completing documents guiding the recently passed laws; increasing access to capital for the real estate market through a credit package of 120,000 billion VND; focusing on developing social housing; effectively implementing Resolution 33/CP on solutions to promote the real estate market.

In order for the real estate market to recover soon and develop sustainably, Deputy Minister of Construction Nguyen Van Sinh also expressed his hope that businesses will proactively mobilize capital to develop specific projects; reduce financial leverage, limit scattered investment; focus on completing unfinished projects, especially social housing projects, low-cost housing segment to increase liquidity, meeting real housing needs of people.