Real estate businesses arrange resources, ready for new growth phase
According to experts, the real estate market has begun to show positive changes in recent months and is expected to improve in 2025.
Market drivers
At the seminar “Identifying the real estate market at the end of 2024 and the beginning of 2025″ held in Ho Chi Minh City in the fourth quarter of 2024, experts gave positive comments on the real estate market in the coming time. The recovery is taking place step by step, businesses are proactively developing appropriate strategies. In the Hanoi and Ho Chi Minh City markets, many old projects after a long period of “hibernation” have been started, investors have completed procedures to bring products to the market.
According to Mr. Pham Lam – Vice President of the Vietnam Real Estate Brokers Association, there are many important driving forces to promote the market in the coming time. First of all, in terms of policy, ministries, branches and localities have implemented many legal regulations in a clearer and more transparent manner. The three laws, the Land Law, the Real Estate Business Law and the Housing Law, which officially took effect from August 1, are the foundations that help the market enter a development cycle in a safer and healthier direction.
In addition, the Government is very determined in implementing infrastructure projects to create momentum for the country’s development. In 2024, the country will spend 657,000 billion VND on public investment, mainly on transport infrastructure investment, and strive to achieve a disbursement rate of at least 95%.
Nationwide, there are 34 major projects, 86 important national component projects, key transport sector projects in 46 provinces and centrally-run cities. Of these, there are 5 railway projects, 2 airport projects, the rest are road projects, mainly expressways and belt roads in the Hanoi Capital region, Ho Chi Minh City belt roads. Many key infrastructure projects with good progress are considered a strong driving factor for the real estate industry in all segments in the long term, especially residential real estate and industrial park real estate.
Enterprises proactively source capital
To prepare for the growth that will start from 2025, many real estate businesses have business and financial strategies ready for recovery next year. The solutions used by businesses include mobilizing new capital sources, seizing international cooperation opportunities, promoting digitalization and financial risk management by investing in technology to optimize cash flow management processes and minimize financial risks.
In the current context, many real estate businesses are also proactively adjusting their product development strategies to better suit market trends. Some product lines expected to be launched in the near future are green real estate applying smart, environmentally friendly technology or products in the affordable housing segment, meeting the needs of a large segment of customers.
Enterprises also take measures to ensure capital for project development. Some enterprises choose to issue or extend the term of bonds. For example, TNR Holdings Vietnam recently announced information about changing the term of bonds in accordance with the law. This change is based on the needs of bondholders, as well as the history of timely payment, in accordance with the commitment of TNR Holdings Vietnam over the years to bondholders.
Known as a developer of high-end apartment projects in Hanoi, Ho Chi Minh City and urban areas in districts across the country, TNR Holdings Vietnam is nurturing new development plans. In the context of macro difficulties in recent years, the company has still strived to maintain and strengthen its internal strength, restructure its organization and continue to develop many projects in Hai Phong, Thanh Hoa, Cao Bang, Dong Nai, Hau Giang, Tra Vinh, etc.
Up to now, bonds are still considered an important capital channel for developing economies , and at the same time, a channel that attracts a large number of investors due to its safety. Meanwhile, other investment channels are not really attractive and still have many barriers for investors: gold prices increase but are very difficult to trade; savings interest rates are not really attractive; stocks have high volatility and require investors to have knowledge, sensitivity and risk management ability. Government bonds and corporate bonds both bring relatively stable profits, not too high but are still chosen by many investors because they are more attractive than savings interest rates.
The recovery of the real estate market and the bond market are closely related. According to experts, although the recovery is slower than expected, this is an extremely positive signal. This recovery is partly thanks to the push from the Land Law, Housing Law and Real Estate Business Law, which will take effect in the second quarter of 2024.
Looking to the future, although the current difficulties still exist, with flexible financial measures and reasonable cash flow structuring strategies, many real estate businesses are confidently entering 2025 with expectations of a new growth period.
baodautu.vn
