A total of 2.75 quadrillion VND (41 billion USD) went into the property market in 2023, according to the State Bank of Vietnam (SBV), an increase of 6.75% in comparison to last year.

Only a few large real estate firm reported profits for 2023, while most firms reported losses amid a stagnant property market.

The newly amended Law on Credit Institutions makes it difficult for banks to transfer real estate projects used as collateral for loans to settle debts.

Companies in sectors less affected by the economic crises and those with deep pockets are driving transactions in the HCM City office market, analysts have said.

As many as 2,000 real estate firms suspended their operation in January, or 138 percent of the number in the same period last year.

Many real estate firms left the market, a number of leaders were sentenced to prison, and a major apartment fire occurred, causing a high death toll. These were the main sad stories of 2023.

The National Assembly has approved the revised Land Law, which will come into full effect next year.

Real estate and bank shares caught securities investors’ attention last week after the amended Land Law and the Law on Credit Institutions were approved by the National Assembly on January 18.

After a topsy-turvy year, 2024 is expected to see more major issues tackled in real estate.

The real estate markets in Vietnam’s two largest cities, Hanoi and Ho Chi Minh City, indicated signs of recovery amid protracted woes in the final months of last year, according to a Savills report.

The hotel real estate market in Vietnam, particularly in Hanoi and Ho Chi Minh City, is predicted to see a big supply thanks to new projects in the 2024-2026 period, according to Savills Vietnam.

As of the end of November 2023, the amount of outstanding loans provided to the real estate sector had reached VND1 quadrillion, up 3 percent over the previous month (VND994 trillion).

Condominium market prices in both Hanoi and Ho Chi Minh City maintain an upward trend this year, according to CBRE Vietnam.

Vietnam has so far attracted 1,135 foreign-invested projects in the real estate sector with a total registered capital reaching US$68.045 billion, according to data provided by the Ministry of Planning and Investment (MPI).

The Vietnam Association of Realtors (VAR) believes that 2024 will be the last year the real estate market will face hurdles before it begins recovering and becomes stable in 2025.

The domestic real estate market is believed to have reached the bottom and expected to roar back to life this year thanks to a slew of measures taken by the Government, ministries, agencies and localities.

In its Vietnam Macro Monitoring report released on December 18, the World Bank pointed out that Vietnam’s economy is still facing difficulties with weak purchasing power despite goods price stability and a lower-than-predicted inflation rate.

A brighter outlook is predicted for the property market in 2024 compared to last year thanks to favourable regulations and interest rates.

The HCM City Real Estate Association (HOREA) says that housing prices are increasing because of legal barriers. Also, high input costs have made it impossible to reduce real estate prices.

Analysts believe that now is the time to inject money into land as the real estate market is lackluster.