Businesses, particularly property developers, are under pressure to sell off assets and real estate projects to settle their debts, including bond repayments and bank loans.
Despite the global economic slowdown, Vietnam's real estate performance remains robust with significant appeal for foreign manufacturing investors, property services firm Savills said in its Asia Pacific Investment Quarterly Report.
One hundred and six industrial zones were being constructed to supply the market with 35,700ha of land for factories and warehouses.
PM Chinh urged relevant ministries, agencies, and local authorities to heighten accountability and adopt a proactive attitude.
- Vietnam's real estate companies' funds drop to their five-year low 1
- Resort real estate: Overcoming hot fever, treating cold fever 2
- Dong Khoi Street (HCMC) is the 13th-most expensive place to rent in the world 3
- Real estate developers increase sales on lower interest rates 4
- Novaland to settle bond debt using luxury property assets 5
- Real estate firms offer higher salaries to attract quality brokers 6
As of August 31, real estate loans totaling over VND986 trillion ($41.1 billion), according to the State Bank of Vietnam.
The real estate sector is finally emerging from its slumber as the economic recovery in the third quarter of the year has triggered a resurgence of demand for realty properties.
Enterprises are restructuring products to meet buyer demands in the real estate sector.
Demand from the growing middle-class is providing support to the stability of the retail rental market in Ho Chi Minh City amidst the challenges faced by the real estate sector.
Townhouse rental rates in downtown HCM City are continuing to decline as a result of the year's weak economic development, according to analysts.
Real estate businesses in Vietnam mobilized about VND55.6 trillion ($2.28 billion) worth of bonds via private placements in the first nine months of the year.
Real estate attracted 1.94 billion USD in foreign direct investment (FDI) in the first nine months of this year, accounting for about 9.6% of total FDI to Vietnam in the period.
The real estate market in Ho Chi Minh City recorded 2,003 transactions in the third quarter of this year, an increase of 561% quarter-on-quarter and 102% year-on-year.
The vacancy rate of offices in Ho Chi Minh City reached 18% in the third quarter of 2023, while rents decreased by between 0.2 -2.2% quarterly, according to Knight Frank Vietnam.
The Vietnamese real estate market has overcome its most difficult period and is bouncing back thanks to fiscal and monetary loosening that has yielded positive effects, according to a leading economist.
Avison Young, a 45-year-old Canadian real estate service firm, expands its APAC reach to the South-East-Asian market by taking on board 100 industry experts in Ho Chi Minh City and Hanoi.
Vietnam stands at a crossroads within the dynamic currents of global trends, with the potential to become a strategic link in the world's global supply chain.