After Vietnam joined the WTO in 2006, the industry that attracted the most foreign investment was real estate. On the other hand, when Vietnam joined the WTO, it was also eager to support state-owned enterprises. Banks lent large amounts of money to some state-owned enterprises, but unexpectedly these state-owned enterprises invested a lot of money in real estate. Excessive funds have pushed up a market with weak demand, causing a sudden "fever" in Vietnam's real estate industry, which is still in its "infancy".
At present, developers have slowed down the development progress of real estate. First, banks have raised interest rates significantly, which has increased their financing costs; second, home buyers are waiting and watching, resulting in reduced demand. Under the dual effects of policy and market, housing prices in some cities in Vietnam have continued to fall, and the government's control measures on the property market have begun to bear fruit.
The Vietnamese government has realized that real estate developers have developed too many high-end residences and fewer houses for low-income people. Therefore, starting from this year, the development of affordable housing will also be encouraged.
Sun Yan, vice president and secretary-general of the Ho Chi Minh City branch of the China Chamber of Commerce in Vietnam, believes that in the past, ordinary people in Vietnam were used to living with several generations in small buildings of two or three floors. Now, there are so many people. There is little land and limited resources; secondly, small independent houses are also expensive. Therefore, Vietnam's future urbanization can only take the path of "large-scale development". Since demolition is difficult in big cities like Ho Chi Minh City, major real estate developers follow urban planning and deploy in new districts. "Urbanization will accelerate the development of Vietnam's real estate industry."
Yu Suo, general manager of China Construction Engineering Corporation's Vietnam branch, believes that the impact of Vietnam's "financial turmoil" has mainly hit the Real estate speculators are a good thing for the long-term development of Vietnam's real estate market, allowing home buyers and developers to view the real estate market more rationally. "In the long term, Vietnam's real estate potential is huge, which is determined by demand. Ho Chi Minh City alone has a permanent population of 7 million to 8 million."