Despite the Government’s efforts to remove challenges facing the real estate market, it won’t prosper until the end of next year, experts have warned.

Vietnam is among the top five destinations selected by Ultra High Net Worth Individuals (UHNWI) in Singapore for their real estate investment plans, according to the Wealth Report 2023 released by Knight Frank.

The Vietnamese real estate market has remained attractive to foreign investors and investment funds despite difficulties countering domestic firms, according to insiders.

Information relating to the loosening of credit room, and commitments from the Ho Chi Minh City People's Committee and other agencies on removing hurdles to transactions have led to experts' positive views on the future of the property market.

Many banks have just launched credit packages with preferential lending interest rates that decreased by between 0.5-3% per year for customers in the fields of business and production, including real estate.

The industrial real estate sector has good prospects in 2023 due to short supply, a shift in the supply chain to Vietnam and its favourable investment policies, experts said.

The demand for industrial land for rent in Vietnam will remain high this year thanks to policies promoting investment in the country, experts said.

Experts have held that the real estate sector will begin a recovery phase in 2023 with many difficulties lying ahead. However, difficult times will present opportunities for long-term investors to buy low.

The State Bank of Vietnam (SBV) has never issued any documents or statements ordering credit for real estate be tightened, Deputy Governor Dao Minh Tu said on February 8.

Investors tend to target real estate with real value. Products with value of below VND1.5 billion will be the most chosen.