Some new and delayed projects have found the capacity to get their ventures going, Photo: Le Toan

A survey released in early 2023 carried out by batdongsan.com.vn showed that out of 1,000 Vietnamese people, up to 68 per cent intend to buy real estate within the next year and up to 87 per cent of those who already own three or more real estate still want to buy more.

The strong figures may stem from moves by the government to complete amendments to the 2013 Law on Land and other relevant laws before 2025, which involve adjustment to land price frameworks, determining land prices according to market principles, and land allocation and lease being carried out mainly through auctions.

In addition, a series of provincial plans have been recently approved by the prime minister, opening up opportunities for real estate investors.

“When interest rates start to cool down, real estate transactions will improve. Real estate is still a favourite investment channel because the real demand for both accommodation and ownership of Vietnamese people is great,” said Hoang Ha, an investor in Ho Chi Minh City who is looking for new real estate opportunities.

Many interested parties are also waiting for the acceleration of public investment disbursement by relevant authorities.

In particular, the launch of Ho Chi Minh City’s Ring Road 3 project is encouraging the real estate market. According to the municipal People’s Committee, the city is paying about $382 million for compensation in time to start the project on June 30. Ring Road 3 will be more than 76km long, passing through Ho Chi Minh City, Dong Nai, Binh Duong, and Long An.

In particular, the section through Ho Chi Minh City passes through the key areas of Thu Duc city, Cu Chi, Hoc Mon, and Binh Chanh district.

Southern regional director of batdongsan.com.vn Dinh Minh Tuan said that compared to Southeast Asian countries such as Singapore, Thailand, Malaysia, and Indonesia, the demand for real estate in Vietnam is at the highest level in the region.

“Vietnam has a large and young population with a high urbanisation rate while the supply is limited, so the real demand for housing always increases,” Tuan said.

Pham Lam, general director of DKRA Group, said that the most important issue today is to strengthen the confidence of buyers. At present, products are being offered but buyers remain hesitant.

“It is necessary to let customers access loans at low-interest rates and stimulate consumption,” Lam said, adding that although the current interest rates have decreased, they are still high compared to people’s income.

Duong Minh Tien, general director of real estate group Asia New Time, said that only when the worry of losing money is reduced, confidence is restored, and money from investors will automatically pour into real estate.

“To have the belief return, legal difficulties for projects must be wiped out. Next, developers must be serious about project development to build a track record. Bankers, meanwhile, also have to support by lending lower interest rates. All of those factors will help resume the market,” Tien said.

After a period of difficulty, the beginning or restart of a series of projects are offering hopeful signs for the market. Earlier in May, Bcons Construction Investment held a ceremony to kick off the Bcons Polaris project. Later this year, it will add a total of five new projects, of which Polaris is the first to be implemented, boasting over 520 apartments in Binh Duong New City.

Hung Thinh Group also said that after temporarily suspending construction activities due to difficulties in cash flow and legal procedures, it has reached an agreement with the bank on funding for projects to continue construction. This month, a series of projects in Ho Chi Minh City, Binh Duong, Dong Nai, and Binh Dinh will be restarted.