Many economic experts assess that there are many factors that promise the growth of the real estate market in 2022.
Abundant capital in real estate 2022
According to the Ministry of Construction, due to the 4th Covid-19 epidemic, it has had a negative impact on the Vietnamese economy in general, causing stagnation and disruption in the chain of business and production activities of many industries, trades and real estate industries. Real estate is not an exception. Most of the real estate development projects across the country have had to stop construction and construction because of social distancing and disruption of the production and supply chain of materials and equipment.
From the beginning of October 2021, localities will gradually lift restrictive measures against the epidemic and at the same time reactivate production activities and economic development in the context of the new normal.
According to the assessment of the Ministry of Construction, the real estate market at the end of 2021 will not have breakthrough changes, because the southern economy is still struggling to bear the damage caused by the epidemic. However, if the Covid-19 epidemic is well controlled, real estate liquidity will increase again, leading to a slight increase in prices due to limited supply but still high housing demand, raw material prices. materials, labor… increase.
In addition, in the current pandemic situation, capital flows from many investors cannot flow into production and consumption channels, so capital flows will tend to pour into real estate, because this is still considered as a safe and sustainable investment channel in the long term.
Specifically: Real estate capital is still abundant. in the fourth quarter of 2021, real estate credit increased by about 6% over the same period last year; the total outstanding loans of real estate is about 2 million billion dong, accounting for about 19% of the total outstanding loans of the economy; in which, according to the State Bank and the Ministry of Construction, housing loans accounted for 64%, the rest was credit for real estate business, accounting for about 36%.
From private capital by December 2021, the number of newly established real estate businesses is 6,700, up 10.3%; registered capital of 423,000 billion VND, creating 43,400 jobs. The market recorded 1,250 enterprises returning to operation and 1,580 enterprises temporarily shutting down.
Regarding FDI sources, by December 2021, the total newly registered capital in real estate reached nearly 2 billion USD (accounting for about 11%), ranking third in the fields of FDI attraction. Capital contribution and share purchase alone reached US$983 million (accounting for 22.4%). Regarding bond issuance, as of December 2021, the whole market issued VND 436 trillion. In which, real estate enterprises ranked first (accounting for 45%), the second is banking group (accounting for 30%).
In addition, infrastructure investment is considered as one of three strategic breakthroughs, along with the legal corridor on real estate that has been removed (Decree 148/CP/2020 on land, Decree No. Decree 69/CP/2021 on renovating old apartments, the Land Law expected to be revised in 2022, strong digital transformation, changing customer tastes after the pandemic, etc. are all positive factors driving the market. The real estate market thrives in the future.
Healthy real estate market
Entering 2022, the Ministry of Construction will continue to promote the management of housing development and real estate market; especially focusing on developing social housing, housing for the low- and middle-income segments. Renovate and rebuild old apartments, strengthen management to ensure stable and sustainable development of the real estate market.
In which, the Ministry will focus on amending the Law on Housing and the Law on Real Estate Business; develop implementation plans and urge ministries, sectors and localities to focus on effectively implementing the National Housing Development Strategy to 2030 as soon as it is approved by the Government; focus on formulating policies, removing difficulties to develop social housing, housing for low and middle income segments; overcome the imbalance of housing product structure.
The sale and purchase of subdivisions and plots from the separation of plots take place in a coastal town in Thach That district, Ho Chi Minh City. Hanoi.
Closely follow the economic recovery program for the period of 2022 - 2023 that the Government is currently developing to promptly advise and propose appropriate specific solutions, mechanisms, policies and resources, focusing on promoting the development of social housing, especially housing for workers.
In addition, the Ministry will closely monitor the implementation of Decree 69/2021/ND-CP dated July 15, 2021 of the Government on renovating and rebuilding old apartment buildings in localities to promptly guide guide and solve problems arising in practice, strive to start a number of projects to rebuild old apartment buildings in 2022, especially in Hanoi and Ho Chi Minh City.
For the real estate market, regularly follow the market's movements to have timely solutions to handle the negative fluctuations of the market, ensuring the stable and healthy development of the real estate market.
At the recent meeting to review the 2021 tasks and implement the 2022 tasks of the Ministry of Construction, Deputy Prime Minister Le Van Thanh also clearly directed the need to supplement mechanisms, policies, regulations and tools. managed to strictly control the real estate market, resolutely not allowing real estate speculation. Continue to restructure the real estate market, balance supply and demand, effectively use land and investment resources.