In the context of the 2019 real estate market entering a downturn, with many unresolved limitations, the real estate in 2020 is expected to be difficult but still have positive bright spots.
The real estate market in 2019 is not completely gray, but according to experts, the existing limitations need to be strongly resolved in 2020 for the market to develop smoothly and healthily. According to the Vietnam Real Estate Brokers Association, the real estate market in 2019 has both positive and negative points. Specifically:
Vietnam's GDP increased by 7.02%. This is the second consecutive year that Vietnam's economic growth has reached over 7%.
Foreign direct investment (FDI) in Vietnam reached US $ 38.02 billion, up 7.2% over the same period in 2018, real estate business accounted for 10.2%.
The amount of remittances to Vietnam is estimated at 16.7 billion USD, up slightly by 4.6% over the previous year. In particular, more than 20% of remittances flow into real estate.
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Demand for housing is huge, Vietnam is currently the 15th most populous country in the world. Tourism activities achieved a feat, attracting over 18 million international visitors, the highest ever.
The State always focuses on investing in new infrastructure. Up to now, there has been nearly 997 km of highways nationwide completed and put into operation, connecting regions.
Credit: Circular 36 of the State Bank has tightened credit capital into real estate.
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There is still a lack of information systems about the real estate market.
The world economic situation continued to slow down, the trade tensions between the US and China and the political issue significantly increased the instability of the global trading system.
Move to review, inspect, check the entire process of land allocation, construction licensing for real estate development projects. The process of investment approval and real estate project development is checked and controlled strictly.
The system of legal documents related to real estate is still inconsistent:
A series of projects that do not meet the legal requirements for sale on the market.
Investment costs, project development increased: compensation, site clearance, labor, interest, materials, ...
According to this unit, Vietnam's real estate market in 2020 will continue to slow down, but more substantially, no virtual market crisis or bubbles will appear. The only paradox of the real estate market in 2020 is that despite the high demand, it is impossible to promote development investment.
According to DKRA Vietnam, within only 5 consecutive years, from 2015 to 2019, the real estate market experiences different states from 2015: Growth; from 2016 - 2017: Hot development; Mid-2018: Starting to cool down; 2019: Declining. According to this unit, many ideas that the real estate market in 2020 can start to go to the end of the growth cycle and prepare to enter a period of depression and depression?
“Obviously, the real estate market is going through a challenging period with many difficulties but the most important thing is that each of us must take action, need breakthrough actions to overcome challenges. In my opinion, the market is developing in a good way. This is the period when the market resolves bottlenecks to serve as a common foundation for development in subsequent years.
Currently, companies that do not work well have had sanctions and policies to make the market develop more sustainably. It can be said that 2020 will be the foundation year for the real estate market, in which businesses compete with each other by capacity ”, Mr. Pham Lam, Chairman of DKRA Vietnam emphasized.
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