This morning (October 10, 2024), National Economics University (NEU), in collaboration with the Ministry of Natural Resources and Environment and the Ministry of Construction, organized a national scientific conference on “Vietnam’s Real Estate Market in the Context of Amendments to the Land Law, Housing Law and Law on Real Estate Business.”

An overview of the conference

Representing central agencies at the conference were Bui Truong Giang, Vice Chairman and Secretary General of the Central Theoretical Council; Nguyen Hai Nam, Standing Member of the National Assembly’s Economic Committee; and Bui Xuan Du, Director of the Department of Secretarial and Editorial Affairs, Government Office.

Key speakers included Prof. Dr. Hoang Van Cuong, National Assembly Deputy and former Vice President of NEU; Vuong Duy Dung, Deputy Director of the Housing and Real Estate Market Management Agency, Ministry of Construction; Nguyen Dac Nhan, Deputy Director of the Department of Land, Ministry of Natural Resources and Environment; Nguyen Hoang Duong, Deputy Director of the Department of Banking and Financial Institutions, Ministry of Finance; Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors; Nguyen Quang Thuan, Chairman of the Board of Directors of FiinGroup; and Nguyen Tri Hieu, an economic and financial expert.

Also attending were numerous economic experts, real estate and real estate brokerage associations, businesses, and researchers from research institutes and universities.

Representing NEU were Prof. Dr. Pham Hong Chuong, President; Assoc. Prof. Dr. Bui Duc Tho, Secretary of the Party Committee and Chair of the University Council; Assoc. Prof. Dr. Bui Huy Nhuong, Vice President; Assoc. Prof. Dr. Nguyen Thanh Hieu, Vice President; and Prof. Dr. To Trung Thanh, Head of the Department of Research Management and Standing Member of the Organizing Committee. Also attending were representatives of the leadership of schools, departments, faculties, institutes and centers; members of the Science and Training Council; leaders of units and divisions; and the University’s faculty, staff and students.

Prof. Dr. Pham Hong Chuong, President of NEU, delivers remarks.

In his introductory remarks at the conference, Prof. Dr. Pham Hong Chuong, President of NEU, noted that Vietnam’s real estate market faced numerous difficulties and challenges in 2022-2023, partly due to legal obstacles. However, from 2024 onward, the real estate market was expected to see positive changes with the implementation of the important laws mentioned above.

Previously, in November 2023, the National Assembly voted to pass the 2023 amended Law on Real Estate Business and the 2023 amended Housing Law. In early 2024, the most anticipated amended Land Law was also passed. These three laws took effect on August 1, five months earlier than the National Assembly had previously resolved, helping put the final pieces of the legal framework for the real estate market in place.

“The real estate market has grounds to expect a more sustainable recovery as an important legal framework is introduced, with numerous regulations and policy mechanisms affecting the market and its participants,” Prof. Pham Hong Chuong emphasized. Despite the Government’s vigorous direction and management, many bottlenecks remained unresolved after the new legal documents took effect.

At the conference, delegates and experts discussed and clarified the effects that changes to the legal framework and innovations in policy mechanisms would have on Vietnam’s real estate market in the coming period as these important laws took effect. They also proposed specific, timely policy mechanisms to implement the Government’s major projects for developing the real estate market, while supporting the Ministry of Natural Resources and Environment and the Ministry of Construction in researching, drafting and issuing subordinate legislation (decrees and circulars).

Prof. Dr. Hoang Van Cuong, National Assembly Deputy and former Vice President of NEU, presents his paper, “Innovations in the 2024 Land Law Regarding Land Prices and Their Impact on the Real Estate Market.”

Discussing changes in the real estate market and forecasting developments in the coming period, Prof. Dr. Hoang Van Cuong, National Assembly Deputy and former Vice President of NEU, noted that the numbers of apartment projects, social housing projects and new products launched recently were very modest. This could lead to a housing supply shortage in the coming period. “The market currently has supply-demand imbalances in certain segments,” Prof. Hoang Van Cuong observed.

With limited product supply and strong demand in the market, prices in Hanoi have tended to rise rapidly. Meanwhile, in southern provinces, including Ho Chi Minh City, during 2023-3024, demand saw virtually no increase and prices across segments did not rise, except for apartments, which maintained growth of around 6%.

Forecasting growth scenarios for the real estate market in the coming period, Prof. Dr. Hoang Van Cuong highlighted several factors, including economic growth and rapid urbanization, which were expected to drive continued growth in real estate demand. This is because real estate is concentrated in many major urban areas where demand is strong. The projected acceleration of urbanization would naturally increase demand.

Regarding an environment conducive to real estate market development, Prof. Hoang Van Cuong expressed expectations that the many newly enacted laws and the new legal framework would resolve the procedural bottlenecks experienced recently. Furthermore, provinces and cities have focused intensively on local and urban planning in recent years, thereby creating new space for development.

According to Prof. Dr. Hoang Van Cuong, lowering short-term lending rates would not help increase real estate supply. Instead, an interest-rate package for long-term real estate loans would generate new demand and bring balance to the market.

Forecasting growth scenarios for the real estate market in the coming period, Prof. Dr. Hoang Van Cuong highlighted several factors, including economic growth and rapid urbanization, which were expected to drive continued growth in real estate demand. This is because real estate is concentrated in many major urban areas where demand is strong. The projected acceleration of urbanization would naturally increase demand.

Regarding an environment conducive to real estate market development, Prof. Cuong expressed expectations that the many newly enacted laws and the new legal framework would resolve the procedural bottlenecks experienced recently. Furthermore, provinces and cities have focused intensively on local and urban planning in recent years, thereby creating new space for development.

However, according to Prof. Hoang Van Cuong, commercial banks face difficulties financing real estate projects, which typically last 5-10 years. Instead, to facilitate capital mobilization for the real estate market, potential sources include the Vietnam Bank for Social Policies, real estate bonds and advance payments from buyers. In addition, trust funds offer more flexible fundraising opportunities, allowing investment in real estate projects that are still at the concept stage, with amounts as small as a few million dong. He also noted: “Legal bottlenecks need to be resolved so that barriers are removed, investors can invest more easily, and costs are reduced to improve access to real estate supply.” However, care must be taken to avoid developing projects en masse only to leave them abandoned, resulting in an inefficient use of society’s investment resources, as in the 2026-2017 period. Instead, investment must follow housing development plans and meet people’s needs, rather than proceeding indiscriminately wherever developers wish to invest.

Prof. Hoang Van Cuong also emphasized new developments in the real estate market as several important laws had recently taken effect. He argued that, as land prices track market prices, a lack of measures to curb speculation would push housing and land prices to a new level that would be difficult to bring down. One solution discussed was to explore taxing speculation to reduce real estate prices.

Vuong Duy Dung, Deputy Director of the Housing and Real Estate Market Management Agency, Ministry of Construction, presents his paper, “Innovations in Housing and Real Estate Business Policies and Their Impact on the Real Estate Market.”

Speaking at the conference, Vuong Duy Dung, Deputy Director of the Housing and Real Estate Market Management Agency, Ministry of Construction, said that real estate price fluctuations were localized in certain market segments and certain provinces and cities. In Hanoi in particular, prices at some real estate projects and land auctions had risen sharply compared with starting prices and general price levels. This required clarification of the factors driving real estate price increases and whether they stemmed from newly issued policy mechanisms.

Proposing measures to establish balance in the real estate market, Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), argued that policies regulating the real estate market in the coming period needed to do more to promote the affordable segment. Only then could the market achieve substantive and stable development.

Pointing out imbalances in the development of housing segments, the Chairman of the Vietnam Association of Realtors said that the market was dominated by high-end properties for wealthy buyers and speculators, while the Government was also taking decisive steps to develop social housing. However, the affordable segment faced shortages, with no new projects in sight. This segment had the greatest demand but insufficient supply—an abnormal situation. According to Dinh, the market needs to be regulated by increasing supply where shortages exist and expanding whichever segments lack products. Implementation of the new legal framework and dissemination of new regulations also need to be accelerated.

Nguyen Dac Nhan, Deputy Director of the Department of Land, Ministry of Natural Resources and Environment, presents his paper, “New Provisions of the 2024 Land Law on Combined Multipurpose Land Use and Changes in Land Use Purpose to Promote the Safe, Healthy, and Sustainable Development of the Real Estate Market.”

According to Nguyen Dac Nhan, Deputy Director of the Department of Land, Ministry of Natural Resources and Environment, the 2024 Land Law was finalized with many important innovations. These include additional provisions on combined multipurpose land use and additional and improved provisions on changes in land use purpose for investment projects. These provisions create a fuller, more comprehensive legal framework for land management and use to unlock and release land resources, contributing to the economical, efficient, and sustainable management and use of land resources in the new period, meeting socioeconomic development requirements, ensuring national defense and security, and protecting the ecological environment. This also provides impetus for the safe, healthy, and sustainable development of the real estate market, as expected and desired by the State and every citizen.

Many experts agreed that the three amended laws—the Land Law, the Housing Law, and the Law on Real Estate Business—had helped reduce inconsistencies among the laws. In particular, their entry into force five months earlier than originally planned had helped generate positive momentum, promoting the recovery and development of the real estate market.

At the conference, in addition to resolving legal obstacles, experts also focused on how to address funding challenges to help resolve instability in the real estate market.

Delegates exchange views and contribute comments at the conference.

MSc. Bui Duc Dung, Head of the Department of General Affairs, serves as master of ceremonies at the conference

Conference delegates pose for a commemorative group photo

Additional photos from the conference:

Article and photos: Department of Communications

Media outlets reporting on the conference:

Vietnam News Agency Television: Hopes for a real estate market recovery

National Assembly Television: Real estate market forecast to recover in early 2025

Real estate market gradually “warms up” with three laws

Nhan Dan Television: Stabilizing real estate market supply and price levels

VTC Television: Promoting stable development of the real estate market

Vnexpress: Prof. Dr. Hoang Van Cuong: Real estate should be taxed to curb housing and land speculation

Vneconomy: Addressing medium- and long-term funding challenges for the real estate market

CafeF: Dr. Nguyen Van Dinh: The market is dominated by high-end properties for wealthy buyers; the sudden “extinction” of the affordable segment is abnormal

Saigontimes: Where can real estate businesses find medium- and long-term funding?

Tien Phong: Prof. Dr. Hoang Van Cuong: Real estate speculators are benefiting the most

Lao Dong: Promoting stable development of the real estate market

Nhan Dan: Identifying and removing bottlenecks in the real estate market

Vietnam Financial Times: Localized real estate price fluctuations in certain segments

People’s Deputies: Access to housing is becoming increasingly difficult

Tin Tuc Newspaper: Regulating the real estate market for recovery and sustainable development

Banking Times: New policies will attract professional real estate investors

Business Forum: A home loan package with an annual interest rate of 5% is needed

Hopes for a sustainable real estate market recovery

Communist Party of Vietnam Online Newspaper: New hopes for the real estate market

Tien Phong: Clarifying real estate price increases: Are newly issued policy mechanisms responsible?

Customs Online: Hopes for positive recovery momentum in the real estate market

Investment Newspaper: The real estate market currently favors speculators

Hanoi’s supply of new apartments increases, but housing prices still do not fall

Policy & Life (Vietnam News Agency): Regulating the real estate market for recovery and sustainable development

Journalists & Public Opinion: The real estate market is nearing the end of its slump but still carries many potential risks

Audit Newspaper: Hopes for a sustainable real estate market recovery

Vnbusiness: Home lending faces difficulties; interest rate incentives need to be more substantive

Industry and Trade Newspaper: Removing legal “bottlenecks” to real estate market development

Corporate Finance Magazine: The real estate market will recover sustainably

Investor Magazine: Obstacles in the real estate market are gradually being cleared

Quality & Life Magazine: VARS Chairman: The shortage of affordable apartments in the market is abnormal

Vietnam Real Estate Magazine: The real estate market gains momentum under the new legal framework

Market Life Magazine: Dr. Nguyen Van Dinh: The market is dominated by high-end properties for wealthy buyers; the sudden “extinction” of the affordable segment is abnormal

Vietnam Business Magazine: Lower short-term lending rates do not help increase real estate supply

Young Entrepreneurs Magazine: “Only a long-term lending rate package can generate new demand and balance in the real estate market”

Business & Green Economy Magazine: A positive wave for Vietnam’s real estate market in the new context

Health & Life: Dr. Nguyen Van Dinh: The market is dominated by high-end properties for wealthy buyers; the sudden “extinction” of the affordable segment is abnormal

Business Life: Divided views on the proposal to tax second properties

Monetary Security: Proposal to allow homebuyers to obtain bank loans at 5% annual interest for a 20-year term

This is an automated translation. If you notice any errors, please contact the Department of Communications, National Economics University at phongtruyenthong@neu.edu.vn.