DECODING THE REAL ESTATE MARKET AND SPARKING INSPIRATION FOR A NEW CYCLE

NDO—The 2024 National Real Estate Forum, with the theme 'Steadfast in the New Cycle,' took place in Da Nang on November 9. The event was organized by the Institute for Research and Real Estate Training in collaboration with the Vietnam Real Estate Council (VREC), under the Institute for Research and Real Estate Training, and nearly 500 delegates attended.

Many challenges for the real estate market

The Vietnamese real estate market is entering an important transitional phase, marked by strategic policy changes, legal frameworks, and macroeconomic conditions. In recent years, Vietnam's real estate market has experienced significant fluctuations. Adjustments in macroeconomic policies, and global economic volatility, along with the improvement of the legal framework, have created a multi-faceted market landscape, with both challenges and opportunities intertwined.

Mr. Nguyễn Đức Lập, Director of the Institute for Research and Real Estate Training, Chairman of the Vietnam Real Estate Council, and Head of the Event Organizing Committee, stated that this new cycle requires rapid adaptation, strategic vision, and innovative thinking. Investors need to proactively research, analyze the market, stay informed, and enhance their management and operational capabilities to make effective investment decisions.

"The forum is a platform for experts, managers, businesses, and investors to 'decode' the market landscape, share experiences, and knowledge, and work together to find solutions to key issues. This event will contribute to promoting legal knowledge, sharing visions, and fostering the healthy and sustainable development of the Vietnamese real estate market in the new cycle" Mr. Nguyễn Đức Lập emphasized.

In response to the market's fluctuations, the 2024 National Real Estate Forum aims to provide the community with accurate information, in-depth analysis, and timely forecasts about the development trends of the real estate market.

Seizing Opportunities in the new cycle

The forum, with three main sessions, focuses on core topics such as National socio-economic development strategies and strategic suggestions for the real estate sector. The discussions center on the macroeconomic landscape of Vietnam and the world, providing strategic directions for the development of the real estate industry shortly. Delegates also shared insights on issues related to the National socio-economic planning, sector development planning, and the planning and connectivity of the coastal urban areas of Huế - Da Nang - Quảng Nam.

In the legal aspect of real estate, the discussions delved into analyzing and evaluating changes in the legal system related to real estate, helping businesses and investors stay updated on regulations to ensure their operations comply with the law.

The development trends of Vietnam's real estate industry in the new era focus on the latest market trends, forecasts on potential segments, and attractive investment opportunities.

Dr. Cấn Văn Lực, Chief Economist at BIDV, a member of the National Financial and Monetary Policy Advisory Council, stated: “In 2024-2025, Vietnam's economy will face significant risks and challenges from external factors, especially geopolitics, trade protectionism, and climate change. Global economic growth is slowing, and the recovery momentum in exports, investment, and tourism is being affected; private investment and consumption growth remain low. Meanwhile, public investment disbursement is still slow, lacking breakthroughs, and is uneven. Businesses continue to face many legal difficulties, high input costs, uneven and unsustainable recovery of orders, labor shortages, and low productivity. The risks in the corporate bond market persist, and the real estate market is recovering slowly.”

Regarding the real estate market, Dr. Cấn Văn Lực suggested that businesses need to propose solutions that are accurate and persistent, continue to restructure operations, and manage risks related to cash flow, finance, and maturing debts.

At the same time, businesses need to actively explore and access support programs, especially fiscal, tax, credit support packages, and debt restructuring and resolutions from the Central Government. They should diversify sources of capital, products, and partners, proactively transition to green, digital, and circular business models, and be well-prepared to implement new laws on land, housing, and real estate businesses that will come into effect.

Associate Professor, Dr. Trần Đình Thiên, from the Vietnam Institute of Economics, offered insights into real estate activities in the new context with the enforcement of three new real estate laws and how to address bottlenecks amidst the surge of foreign investment, with many trends, challenges, and risks emerging.

Lawyer Lê Cao, Managing Partner of FDVN Law Firm and Vice President of the Central Arbitration Center, stated: “The three laws on real estate, which came into effect on August 1, 2024, are gradually making an impact on the real estate market. Specifically, for businesses engaged in brokerage, consulting, management, and real estate operations, the effects of the new regulations from the three real estate laws are evident in the updated business conditions. These new requirements will elevate the professionalism of real estate services.”

These conditions not only help raise the status and role of real estate brokerage, consulting, and management services to a new level, but also serve as a basis for forcing businesses to adapt, change, and become larger, more professional, and make a greater contribution to the dynamic growth of the real estate market.

The rights of entities that use and own real estate are the foundation for opening up demand in the market. Real estate service companies need to introduce and showcase the supply to enable participation in the market. Vietnamese citizens abroad and overseas Vietnamese always represent a potential driving force for the market. With the new conditions and clearer regulations that expand their rights, they are ready to provide significant capital for a market that needs to restart and accelerate. Understanding this new situation, real estate service companies must envision what actions are needed to transform, improve, and breakthrough with what the market offers and what society needs.