In the bustling heart of Hanoi, a 4m² house has become the subject of intrigue and amazement. Despite its tiny size, the owner recently turned down an offer of VND 4 billion.

Though analysts said the gloomy period of the real estate market is over, real estate firms keep complaining about difficulties.

Starting August 1, 2024, three key laws - the 2024 Land Law, the amended Housing Law, and the amended Real Estate Business Law came into effect.

More than 17,100 apartments and land plots of real estate projects across the country remain on the market in the second quarter of this year, with land plots and houses doubling that of apartments.

HOREA (HCM City Real Estate Association) Chair Le Hoang Chau says a big gap still exists between prices announced by local authorities and market prices, though authorities have raised prices within the land price framework.

Foreign investors injected more than 2.87 billion USD into the Vietnamese realty market during January-July, a year-on-year surge of 78%, according to the Ministry of Planning and Investment (MPI)’s Foreign Investment Agency.

The Land Law, the Law on Real Estate Business, and the Housing Law, all to be effective from August 1, are expected to help remove pending roadblocks to real estate projects and promote the transparency of the market, according to insiders.

A series of high-profile resignations from top executives in the real estate sector has raised questions about the stability and future direction of these companies.

Real estate enterprises are facing significant debt maturities of nearly 59 trillion VND (2.3 billion USD) and a rapidly rising delinquency rate in the sector.

The pressure of maturing bonds is still weighing heavily on real estate businesses in Ho Chi Minh City, forcing them to find solutions to restructure debt.

Experts believe that positive changes in real estate laws and the policies of the Government will increasingly attract many foreign investors, helping to orient the market to develop in a more healthy manner.

Banks are struggling to sell defaulting borrowers’ collateral, primarily real estate, to recover the debts since the property market is sluggish.

The Ministry of Public Security (MPS) has requested information about the assets of 11 individuals involved in the case of the Vietnam Rubber Group (VRG), and to stop business transactions of these people.

The domestic real estate market has bottomed out and is gradually making a U-turn, promising a brighter outlook this year with mergers and acquisitions (M&A) bouncing back.

Minister of Natural Resources and the Environment Dang Quoc Khanh believes that if the Land Law takes effect earlier than planned, this will help the property market, free up land resources, and speed up public investment and social housing projects.

The real estate sector has been bustling with a series of positive signs, as some resort projects are reactivated, industrial ones implemented, and new housing supply entering the market.

Ho Chi Minh City and Hanoi have been included in the Savills list of fastest-developing cities on the planet recently released by the commercial real estate brokerage firm.

With around 20 million four- and five-star room nights available in Vietnamese hotels each year, developers should halt new projects in many coastal areas until such time that tourists fill them, according to property consultancy firm Knight Frank.

Since the beginning of 2022, the industry has swiftly rebounded after a prolonged disruption caused by the pandemic.

Realtors and experts believe that if the Law on Real Estate Business, Law on Housing and Land Law take effect six months earlier than initially planned, the problems in the market will be settled.