Struggling with difficult access to bank loans, the real estate sector has got good news that two major credit packages totaling VND230 trillion would be launched after Prime Minister Pham Minh Chinh met with real estate businesses on Friday.

Prime Minister Pham Minh Chinh on February 17 urged stakeholders in the real estate market, including the State, businesses, buyers and people, to join efforts for the safe, heathy and sustainable development of the market.

The HCM City Real Estate Association has proposed removing controversial regulations on apartment ownership termination in the draft revised laws relating to the real estate market.

While the real estate market is gloomy and realtors need capital, some enterprises are developing projects with investment capital of trillions of VND.

Real estate prices have been staying high, though they have slightly fallen at times at some projects, according to the Ministry of Construction (MOC).

The ongoing credit crunch and the Government’s restrictions on corporate bond sales have put an additional strain on the debt-ridden real estate sector.

The demand for industrial land for rent in Vietnam will remain high this year thanks to policies promoting investment in the country, experts said.

Speaking at a conference on real estate credit on February 8, State Bank of Vietnam (SBV) Governor Nguyen Thi Hong warned about lending to "back-door" enterprises.

Experts have held that the real estate sector will begin a recovery phase in 2023 with many difficulties lying ahead. However, difficult times will present opportunities for long-term investors to buy low.

Although the global economic picture of 2023 is expected to face a series of conflicts, foreign direct investment in real estate is still expected to prosper.

The 2022 real estate market ended with ups and downs, from land fevers to a frozen market. But analysts believe the picture will be better in 2023.

Apartments located in advantageous positions in Hanoi and HCM City have average prices of VND50-60 million per sq m.

Bankers say they do not lack policies to provide loans but face problems related to the subprime quality of collateral.

The number of real estate firms declaring bankruptcy and dissolution in 2022 increased by 38.7 percent over 2021, according to the Ministry of Construction’s (MOC) recent report.

The State Bank of Vietnam (SBV) has never issued any documents or statements ordering credit for real estate be tightened, Deputy Governor Dao Minh Tu said on February 8.

The HCM City People’s Committee has consulted with the Ministry of Planning and Investment (MPI) on the draft of a resolution to replace the National Assembly’s Resolution 54/2017/Wh14 on policies to create momentum for the city development.

Over 80% of real estate bonds have been issued by unlisted firms that are financially weak and have low transparency, said the credit rating agency FiinRatings.

Investors tend to target real estate with real value. Products with value of below VND1.5 billion will be the most chosen.

As of December 31, 2022, the outstanding loans provided to the real estate sector had reached VND800 trillion, while the figure was VND700 trillion by the end of 2021, said the Ministry of Construction, citing SBV’s (State Bank of Vietnam) figures.

Volatile real estate market caused revenue and profit of realty businesses to decrease sharply in the fourth quarter of 2022.