HCMC – Experts of the Central Institute for Economic Management (CIEM) have forecast that the gloomy global economic picture will continue to affect the Vietnamese economy next year, especially the real estate market.

Inflation, high interest rates, volatile foreign exchange rates, restrictions on real estate loans, falling foreign investment and slow public investment disbursement would dampen the property market.

Chairman of the HCMC Real Estate Association Le Hoang Chau told the Vietnam News Agency that if there were no incentives for real estate firms, the local property market next year could melt down. Many firms are in financial distress, with some having seen their assets frozen due to corporate bond issues. As a result, flows into the real estate sector might decrease sharply.

Under pressure from international supply chain disruptions and global inflation, the local property market could plunge into depression as it is not until late 2023 that many regulations and laws on land, housing and real estate trading come into force.

However, CIEM experts said that if these laws are approved at the National Assembly Standing Committee’s extraordinary meeting and take effect from the first quarter of 2023, the property market would see many positive signs.

Realizing the challenges facing the economy, a few days ago, the prime minister asked relevant agencies and ministries to promptly remove obstacles over loans and real estate bonds and lift hurdles on the real estate market by developing housing projects pending the completion and expediting the launch of the revised Laws on Land, Housing and Real Estate Trading.

To relieve the financial burden on the real estate industry, the Prime Minister urged the central bank’s governor to work with commercial banks and relevant agencies to offer preferential loans to property firms and homebuyers.

This year, the local real estate market has been facing many difficulties, including an undersupply of social homes, an oversupply of luxury homes, falling capital flows into the sector and soaring prices of homes.