Term for Vietnam real estate market to fix itself

Vietnam real estate market is bracing for recession and that should bring it back to its true value. That sounds great for those buying to live and for speculating the add-value property in the future. Along with that, making money isn't easy nowadays. So the realtors need to put the effort into low prices for those who find houses for a living. 

Good scenarios for homebuyers looking for real homes - Vietnam real estate

According to customers: "In a constant period, now it is coming back to real value. Due to the low supply last year, the selling price for a villa for sale in Hanoi downtown is ranging $8,000 to $11,000 (per square meter). The price of housing is like in Singapore or Hong Kong, etc. And it's been through 3 years, and half of the villas for sale in Vinhomes The Harmony have been vacant. In general, the properties have to decrease in price to help real estate businesses generate cash flow. 

Challenges Vietnam real estate ought to face

Vietnam's real estate market had gone bad within just a few months. And the current number one bottleneck for the economy is that companies are running out of money. According to the Private Economic Development Research Board under the Prime Minister's Advisory Council for Administrative Procedures Reform (Board IV), a shortage of funds and systemic problems have put most companies in difficult cases where they are facing to retain partial operations.

After the events related to Tan Hoang Minh, Van Thinh Phat, and SCB Bank spreading to all industries, investors are worried about purchasing bonds and tend to redeem prematurely even those issued by strong enterprises. Leading to tons of challenges that property companies in the bond market or bottleneck of capital. Therefore, to eliminate the capital bottleneck in businesses' real estate, settling the capital issues is imperative. This is being interpreted as a simple question of whether or not to rescue real estate.

I realized that the simplistic understanding of the economy's current liquidity issue has led to it being turned into a debate over whether or not to rescue real estate and bond investors. Untangling capital flows is to untangle capital flows for the whole economy. If theirs are stuck, it can impact many other areas of the economy.

Minh is just layoffs by a real estate company because of its weak finance. "We need to strive hard, I guess all jobs have ups and downs sometimes. The only thing I have to do is accept and find another job. In a bad situation, if working at another field now, I might have to do it from scratch" - Minh said.

See more: PM sets up taskforce to tackle hardships in Vietnam property market

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