In 2023, Vietnam’s real estate market underwent its worst recession period: many enterprises simultaneously took deep losses and struggled to address the crisis of buyer trust. However, thanks to decisive government support policies and vigorous market cleansing, bright spots emerged by year’s end, opening attractive opportunities for new investors focusing on genuine needs.

The 2023 Landscape: When ‘Rough Seas’ Test Resolve

The 2023 real estate market continued its decline from late 2022 with a series of difficulties. Desperate selling and price reductions occurred at many enterprises; many developers even accepted discounts up to 40% of sale prices to stimulate liquidity.

The real estate sector’s turmoil became a sad highlight in the economic picture since 2022.

• Enterprises leaving the market: In just the first 11 months, 1,160 real estate businesses ceased operations or dissolved. Major names like Dat Xanh, Novaland, Hung Thinh… were forced to cut 50% to 75% of staff to survive.
• Trust crisis: Violations by leaders of large groups like Apec Group, Nhat Nam Real Estate, LDG… continued to deliver heavy blows to investor psychology.
• Financial pressure: The figure of 119,000 billion VND in bonds maturing in 2023 created enormous pressure, putting many enterprises at risk of default.

Market Rescue Efforts

Faced with this situation, the Government and agencies made unprecedented ‘rescue’ efforts to revive the market.

The turmoil of real estate enterprises became a sad highlight in the economic picture since 2022.

• Opening capital flows: The State Bank adjusted operating interest rates downward 4 consecutive times, simultaneously issuing Circulars 02, 03, and 10 to ease borrowing conditions and debt restructuring for enterprises.
• Resolving bond bottlenecks: Decree 08/2023/ND-CP emerged allowing enterprises to negotiate bond payments with real estate, helping reduce immediate financial pressure.
• Infrastructure and public investment leverage: Public investment disbursement reached record levels (over 123 trillion VND compared to the same period in 2022), promoting key projects like Ring Road 3 (HCMC), Ring Road 4 (Hanoi), My Thuan-Can Tho Expressway… creating momentum to increase surrounding real estate values.

A Ray of Hope for New Investors

Minister of Construction Nguyen Thanh Nghi assessed: “The market has passed the most difficult phase.” With bright spots in infrastructure, interest rate stability, and new laws soon taking effect, 2024 is forecast to be an important stepping stone for a new sustainable growth cycle.

Minister of Construction Nguyen Thanh Nghi. Photo: Duong Giang/TTXVN

Experts also evaluate the recent difficult period as a ‘necessary cleansing,’ helping the market eliminate weak elements and move toward healthier development.
Notable positive signals:

• Transparent legal corridor: National Assembly passage of amended Housing Law and Real Estate Business Law (effective from 2025) along with tightened mini-apartment management regulations will better protect buyer rights.
• Improved liquidity: Data from VARS shows transaction volumes by year’s end increased significantly compared to early year (from 2,700 Q1 transactions to higher levels in Q3 and Q4), showing hesitant psychology gradually lifting.
• Reasonable pricing: Developers releasing huge discount policies and secondary market price adjustments are ‘golden’ opportunities for new investors to enter the market at more reasonable prices after overheated growth periods.