Experts forecast real estate market for next year

Real estate businesses and experts gave forecasts about the real estate market in the second half of 2022 and early 2023 and recommendations for investors at the Real Estate Forum held in Hanoi today, with the participation of representatives of the Vietnam Real Estate Association.
Experts forecast real estate market for next year ảnh 1

According to economic expert Can Van Luc, there are many factors that positively affect the real estate market including the relatively good economic recovery, the acceleration of the program of socio-economic recovery and development 2022-2023, and public investment.

In addition, legal issues have been and are being resolved while interest rates and basic exchange rates were stable despite strong upward pressure. In particular, the credit market is having bright spots. From now until the end of the year, there will still be a new credit wave for good property projects and by 2023 there will be a new credit room.

However, challenges still remain because the economic recovery is not sustainable and the supply is not immediately abundant whereas the prices of energy and raw materials also increased. The Government and responsible agencies have been tightening management of the corporate bond market.

Regarding specific developments in the market, a representative of CBRE Group forecast that from now to 2025, investors will launch new projects on the market. Prices will continue to rise but not too high.

For example, the average price of apartments in Ho Chi Minh City is currently VND58 million per square meter and it will only be about VND62 million per square meter by 2024, or a growth rate of 4 percent. In Hanoi, real estate will see a higher increase of around 8 percent. With the housing market, the supply will continue to be scarce in the coming years.

At the forum, experts recommended that real estate businesses actively learn and approach the restoration program and recent resolutions of the Politburo, the National Assembly, and the Government with a focus on digital transformation, the anticipation of new trends and adaptation to new trends, change and risk management.

Real estate businesses also need to flexibly mobilize capital from other channels with the orientation towards transparency and professionalism, especially credit records, and securities issuance records.

In particular, experts warned real estate investors that different types of land division, illegal projects and high-priced projects due to speculation in the near future will be prevented; therefore, investors should be knowledgeable and educated about the real estate market.