The market has been gradually bouncing back since May, with the second quarter recording better results than in the first quarter. (Photo: doanhnhantrevietnam.vn)Since the start of 2023, the StateBank of Vietnam has continuously reduced policy interest rates, by a total of 0.5-2 percentage points per year. It has also ordered credit institutions to minimise expenses tolower lending interest rates to aid businesses, people, and economic recovery.
The Government, ministries, andsectors have also issued an array of other support policies to remove bottlenecksin the economy.
Thesefactors have been providing a boost for the real estate market to recoverfaster, more safely, and more sustainably, which also indicates that supportpolicies are gradually proving useful, experts opined.
Dr Can Van Luc, Chief Economist at theJoint Stock Commercial Bank for Investment and Development of Vietnam (BIDV)and member of the National Financial and Monetary Policy Advisory Council, heldthat the property market underwent the most trying time, including financialdifficulties caused by corporate bond-related problems.
Themarket has been gradually bouncing back since May, with the second quarterrecording better results than in the first quarter. Industrial parks now havean occupancy rate of 76%, he noted.
Investors said prices of real estatestocks have increased 18% and construction tickers 39%. Procedural and legal obstaclesfacing many real estate projects have also been tackled.
Interestrates have returned to the levels in the first half of 2022.
Specialistsof the WiGroup JSC, which provides economic data and fintech solutions inVietnam, forecast the property market will witness observable improvements fromlate 2023 or early 2024. Compared to the pre-pandemic period, developments inthe market at present are similar to those in 2014-2015.
Theypointed out that the investor sentiment has improved, procedures related to investmentprocedures been removed, interest rates slashed, lending ceiling limits raised,and public investment disbursement accelerated while consumption and tourism stimulated.These factors are fueling real estate transactions.
Lowerinterest rates will be the main driver for the property sector. While depositinterest rates have been reduced since Q1, lending rate cuts are slowerbut still continue. Besides, a more favourable legal corridor has also helpedfacilitate real estate supply, according to WiGroup.
Nguyen Quoc Anh, Deputy DirectorGeneral of Batdongsan.com.vn – an online property trading platform, said ifdeposit interest rates continue to drop to under 10% by the end of this year,the money people put into their deposit accounts in late 2022, when depositinterest rates surged, will be withdrawn and channelled into the market.
Echoingthe view, Chairman of the Vietnam Association of Realtors Nguyen Van Dinhperceived that if lending interest rates for both new and old loans decline,the financial pressure on investors will ease. Besides, if deposit interestrates are brought down to under 5%, money will return to real estate and foster transactions in the market./.
VNA
