LOW-INTEREST RATES, THIRD QUARTER INVESTMENT REAL ESTATE MARKET?

The real estate market is gradually "reviving" again after a series of difficult moves by the Government. Along with that, investors also continuously give new information about the project, making the real estate market exciting again.

The market recovered strongly because of good policies

After a series of drastic instructions from the end of 2022, recently on May 25, Deputy Prime Minister Tran Hong Ha signed and promulgated Official Letter 469/CD-TTg on dismantling and promoting the development of the real estate market. safe, healthy, and sustainable development. The official requires ministries, branches, and localities to consider this an urgent and important task to focus on solving according to the principle that problems within the authority of any level must be resolved by that level. Ministries and branches focus on guiding localities on regulations in their fields to solve current problems and do not reply to avoid them.

Along with a series of urgent orders from the Government, the SBV also continuously lowered the interest rate ceiling to support the recovery of economic growth. Accordingly, the State Bank of Vietnam announced that it will continue to reduce a series of operating interest rates applied from May 25. Since the beginning of 2023, this is the third reduction. Accordingly, for deposits with a term from 1 month to less than 6 months, the maximum applicable interest rate will be reduced from 5.5 %/year to 5.5 %/year. %/year. In addition, the refinancing interest rate decreased from 5.5 %/year to 5 %/year. Cooling interest rates also dragged down real estate lending rates of a series of banks to a deep drop compared to 2022.

According to real estate experts, the market is being strongly supported by a series of good policies. In particular, not only short-term measures such as the Prime Ministers urgent dispatch or lowering interest rates but also long-term policies for real estate are also interesting. Specifically, during the National Assembly session this June, the legal bottlenecks of the Law on Housing, the Law on Real Estate Business, and the Law on Land are being discussed to amend the Law, creating an open corridor for investors. real estate development.

Prepare to welcome the new recovery cycle of real estate

Before the Governments determinations, the real estate market has gradually warmed up since May. While investors have been busy looking for new products, real estate floors have started to start training sales again. Real estate businesses are also rushing to start projects and kick off sales aggressively to prepare for a new recovery cycle of real estate.

One of the notable events to welcome the recovery of the real estate market is the groundbreaking event of the Eco Central Park mega-urban area organized by the founder of Ecopark (Nghe An) together with Ricons Construction Joint Stock Company. . With a scale of nearly 200 hectares in Vinh city, this is the largest project in the Central region to be started in 2023.

After the commencement, the Ricons contractor is accelerating the construction of the first subdivision to bring the project on schedule. When the model villa Eco Central Park and Thien Nga Lake Park were officially opened, the project blew a new breath in the real estate market of Nghe An in particular and the Central and Northern regions in general.

Following the Eco Central Park project, the focal point of the Central region, a project in Hanoi that is also expected to start construction this year is a project of more than $4 billion on the Nhat Tan - Noi Bai axis. Specifically, during a meeting with Chairman of the Hanoi Peoples Committee Tran Sy Thanh, Japanese Ambassador to Vietnam - Yamada Takio expected that the smart city project in the North of Hanoi would be started soon in 2023, becoming become a symbol of cooperation between Vietnam and Japan, at the same time the two countries celebrate the 50th anniversary of establishing diplomatic relations.

According to actual records, in addition to these great projects, currently, investors throughout the North, Central, and South are also providing project launch plans, kicking off sales and simultaneously starting many new projects. In particular, the common point of most projects that can be implemented at this time is good legal status, prime location and development by reputable investors, and good financial health.

Talking to us, Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association (VARS), said that the real estate market is showing positive signals when synchronously deploying solutions to solve problems with many different methods. legal documents. Many businesses ensure the "health" status through structuring, aligning, and implementing projects for quick delivery and easier absorption.

In the second quarter of 2023, the Government will focus on amending and dealing with problems related to investment procedures with group housing projects, including social housing projects, worker accommodation, and renovation. creating old apartment buildings... From here, it will spread the heat to other segments of the market, break the ice and help the market recover, and the real estate market can recover from the third quarter and quarter. IV this year" said Mr. Dinh. Sharing the same view with Mr. Dinh, Assoc. Dr. Tran Dinh Thien, Chairman of the Scientific Council of the Vietnam Institute of Economics and a member of the Prime Ministers Advisory Group, said that currently, the Government has many solutions to support businesses in extending the deadline for paying taxes. VAT, corporate income tax, land rent reduction... And real estate is also expected to receive a credit package to support the development of social housing projects, and housing for workers. “With these drastic moves, in the immediate future, policies on social housing development will be implemented quickly. It is forecasted that the market will soon recover again in the third quarter of 2023”- TS Thien forecast.