A newly developed residential project in Can Tho city. (Photo: VNA)This could sendinvestors hunting for good deals in the property market despite the tighteningof monetary policies by the central bank and recent downturns in the market.The flow of capital could give a lifeline to the market, as well as dozens ofindustries including construction materials, machinery, equipment, furniture,and labour that are traditionally dependent on property sales.
There have been signalsfrom the government that starting from the second quarter of 2023, additionalpolicies will take place to provide additional money to the market.
In the meantime, localauthorities have been told to step up efforts in resolving legal bottlenecks toallow property projects to take off. This time around, according to theassociation, developers have taken steps to address the market's demand.
Factors that favour themarket's recovery include reduced interest rates, a move by commercial banksthat have allowed developers access to much-needed capital injections, andwhere to start new projects or to finish ongoing ones.
Nguyen Van Dinh, Chairmanof the VARs, said with credit room starting to open up and additional capitalflowing into the market could look at a recovery phase in the near future.Traditionally, he added, properties were the preferred investment channelamong Vietnamese investors that often yielded higher returns than others.
He said now could be agood time for investors to start looking for good deals as prices have had timeto cool down significantly during last year.
According to theassociation, the tightening of monetary policy by the central bank and thegovernment have shown signs of slowing down and could start opening up as soonas the second quarter of 2023.
Capital inflow couldalso be expected by the third quarter, he said.
Last year, totaldeposits by businesses and individuals in the banking system reached 900trillion VND with individuals accounting for more than 565 trillion VND. The thirdquarter of 2023 would be a critical period as a large portion of said depositwould mature, with investors sitting on piles of cash looking for moreprofitable investments.
Reports from propertybrokers have been so far positive, with the market starting to see upticks intransactions and a higher number of requests for information by potentialbuyers.
Dang Quoc Viet, arepresentative from Smartland Real Estate Trading Floor in the northernprovince of Nghe An, said more prospective investors had made calls and visitedhis trading floor in recent weeks.
He said many had showngreat interest in projects with good reputations and infrastructure, a markedlyimproved situation compared to last year. He added this could be a sign thatinvestors' confidence in the market was returning./.
VNA
