Many experts are betting on a recovery in the real estate market after August 1st.

However, according to Ms. Mien, not all segments experienced positive growth, and there was significant differentiation. Industrial real estate continued to be the market's "star." Next came the apartment segment, which remains the dominant segment, leading the way and controlling market liquidity.

The low-rise and land plot segments are also beginning to show positive signs of recovery, with some projects, mainly in the central and northern regions, recording fairly good sales and transaction results.

Specifically, the tourism and resort real estate segment showed more positive signs in the second quarter compared to the first quarter of 2024. However, there were still not many significant changes, despite a strong increase in supply and transaction volume compared to the same period last year.

Ms. Mien emphasized: The positive growth signals of the market in the first six months of 2024 are the culmination of many outstanding factors, with the combined efforts of the Government , relevant agencies, and real estate businesses themselves.

“In the first half of 2024, the overall picture of the Vietnamese real estate market has become brighter with clear recovery results in some segments and localities. Although these ‘strong points’ are not yet enough to cause the market to ‘boom,’ they will certainly be the foundation for more impressive results in the second half of the year,” Ms. Mien said.

Place your faith in August 1st.

Despite positive growth each month and quarter, the recovery process remains slow and has not yet truly broken through. The reason is believed to be that bottlenecks in mechanisms and legal frameworks are still the main obstacle to recovery. These bottlenecks account for up to 70% of the difficulties real estate businesses are currently facing.

However, from August 1st, many bottlenecks will be removed thanks to a series of new regulations officially coming into effect, namely the Land Law 2024, the Housing Law 2023, the Real Estate Business Law 2023, and the Law on Credit Institutions 2023.

Regarding this issue, Associate Professor Tran Dinh Thien, a member of the Prime Minister's Economic Advisory Group, stated that the new laws will certainly have a positive impact, contributing to the recovery and development of the market.

Because the laws were drafted in the context of a market facing difficulties and obstacles, their goal was to thoroughly resolve these difficulties and obstacles.

"In fact, the efforts to address the obstacles and bottlenecks shown in the recently passed laws, while not yet meeting expectations, will certainly have a positive impact," said Associate Professor Dr. Tran Dinh Thien.

Sharing the same view, Dr. Vo Tri Thanh - Director of the Institute for Brand and Competition Strategy Research - assessed: The new laws, once officially in effect, will create a new legal framework, resolving most of the "bottlenecks" for the market, as 70-80% of existing obstacles are legal in nature. At the same time, it will create a foundation for the real estate market to develop in a safe, healthy, and sustainable direction.

However, Dr. Vo Tri Thanh noted that, to ensure effectiveness in the implementation process, it is necessary to expedite the completion of the above Decrees while ensuring quality content and close alignment with the market.

Meanwhile, Dr. Nguyen Van Dinh, Vice President of the Vietnam Real Estate Association, stated that currently, over 1,200 projects nationwide, with a total capital exceeding 30 billion USD, are facing difficulties due to legal obstacles and are awaiting review and inspection.

In response to this situation, the Government and the National Assembly have amended laws related to the market, such as the Land Law, the Real Estate Business Law, the Housing Law, and the Law on Credit Institutions.

"In these revised laws, the lawmakers' perspective is to standardize institutional regulations related to land use, avoiding overlaps and conflicts between laws, ensuring clarity and transparency in investment activities and the use of land resources, and aiming to enhance practical capacity," Mr. Dinh said.

According to Mr. Dinh, the recent market difficulties are also a form of selection. Only those businesses with sufficient capacity will remain in the market. Small businesses will be forced to form joint ventures and partnerships to have enough strength to develop and survive in the market.

"When the laws come into effect, businesses will no longer be able to 'start from scratch,' and developing projects will become much more difficult. Investors must be serious about their work and play. Riding the wave or speculating on the virtual market will be impossible when the new legal regulations take effect," Mr. Dinh said.

Alongside positive factors that could create momentum for a market breakthrough after August 1st, the new regulations also give rise to new problems, creating considerable pressure on businesses, especially struggling real estate companies.

Elaborating on this issue, Mr. Pham Thanh Tuan, M.Sc., from the Hanoi Bar Association and a real estate legal expert, stated that the aforementioned laws still have some unresolved issues.

For example, the 2024 Land Law has new regulations stating that businesses that win bids but are slow to provide compensation and resettlement support may have their bids canceled. Or, the 2023 Real Estate Business Law is creating a new bottleneck related to defining the "boundaries" when transferring a portion of a project versus transferring land use rights that already have technical infrastructure.

Therefore, Mr. Tuan believes that, with new issues arising, state management agencies need to continue researching further to improve their practices.

Viet Vu