According to the Vietnam Association of Realtors (VAR), the recent interest cuts by the State Bank of Vietnam (SBV) could send trillions of VND in savings to the real estate market.
Despite the central bank’s monetary policy tightening and recent market declines, investors may be looking for good deals in the real estate market. The flow of capital could give a boost to the market, as well as to dozens of industries, including building materials, machinery, equipment, furniture and labor, that traditionally depend on property sales.
The Government has given signals that, from the second quarter of 2023, additional policies will be carried out to provide more money to the market.
Meanwhile, local authorities have been asked to redouble their efforts to resolve legal bottlenecks allowing real estate projects to get off the ground. This time, according to the association, developers have taken measures to meet market demand.
Among the factors favoring the recovery of the market are the reduction in interest rates, the actions of commercial banks, which have allowed developers to access much-needed capital injections, and where to start new projects or finish those that are in progress. March.
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Nguyen Van Dinh, Chairman of VAR, said that with the opening of credit and additional capital inflows, the market could enter a recovery phase in the near future. Traditionally, he added, real estate was the preferred investment channel for Vietnamese investors, who tended to earn higher returns than others.
The Government has given signals that, from the second quarter of 2023, additional policies will be carried out to provide more money to the market.
He said now might be a good time for investors to start looking for good deals, as prices have had time to cool off significantly over the last year.
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According to the association, the tightening of monetary policy by the central bank and the government has shown signs of slowing down and could begin to open as early as the second quarter of 2023.
A capital inflow could also be expected for the third quarter, he added.
Last year, total corporate and individual deposits in the banking system reached VND 900 trillion, of which more than VND 565 trillion were held by individuals. The third quarter of 2023 will be a critical period, as a large portion of these deposits will mature and investors will hoard cash in search of more profitable investments.
So far, the reports from real estate agents have been positive, as the market begins to register upticks in transactions and a greater number of requests for information from potential buyers.
Dang Quoc Viet, a representative of Smartland Real Estate Trading Floor in the northern province of Nghe An, said calls and visits from potential investors had increased in recent weeks.
He said many had shown great interest in reputable projects and infrastructure, a notably better situation than last year. He added that this could be a sign that investors are regaining confidence in the market.
Article republished from the Vietnamese state media VNA in the framework of an agreement between both parties to share content. Link to the original article: https://en.vietnamplus.vn/trillions-of-vnd-expected-to-move-into-property-market/254850.vnp
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