Vietnam’s government aims to boost its real estate sector by easing bank credit and tackling legal, land, and administrative hurdles to foster market growth.

Industrial property will continue to thrive and the apartment segment’s recovery will gather pace in the remaining months of this year thanks to growing demand, analysts have said.

Vietnam's industrial real estate sector has shown remarkable signs of growth in the third quarter of 2023, with substantial new project launches contributing significantly to the market.

Time-consuming investment procedures and lack of attractive incentives for developing social housing are preventing the segment from developing strongly despite great demand.

The property market has overcome its most difficult period and will recover from early 2024, analysts concur.

A number of large enterprises from the South Korea are continuing to pour investment into Vietnam, turning the Southeast Asian country into their leading manufacturing hub in the world.

SkyWorld Development Berhad, Malaysia's premier urban property developer, on September 7 made a noteworthy inroad into the Vietnamese real estate sector by securing full ownership of Thuan Thanh Production, Commercial and Real Estate Business JSC

Ho Chi Minh City has not seen any new affordable apartment projects enter the market this year either as mid- and high-priced segments continued to dominate.

Continuous interest rate cuts and support policies are gradually proving effective, helping ease difficulties facing the real estate market, experts have said.

Investors from Singapore, South Korea, Taiwan, Japan and Malaysia invested about $1.4 billion in merger and acquisition (M&A) deals in Vietnam's real estate sector in the first seven months of this year.

More effective solutions are being called for to pave the way for new supply and access to buy property.

With the reduction in interest rates, international credit rating agency Fitch Ratings believed the credit and liquidity risks of Vietnam’s real estate have passed their peak.