A newly developed residential project in Can Tho city. (Photo: VNA)

There have been signals from the government that starting from the second quarter of 2023, additional policies will take place to provide additional money to the market.

In the meantime, local authorities have been told to step up efforts in resolving legal bottlenecks to allow property projects to take off. This time around, according to the association, developers have taken steps to address the market's demand.

Factors that favour the market's recovery include reduced interest rates, a move by commercial banks that have allowed developers access to much-needed capital injections, and where to start new projects or to finish ongoing ones.

Nguyen Van Dinh, Chairman of the VARs, said with credit room starting to open up and additional capital flowing into the market could look at a recovery phase in the near future. Traditionally, he added, properties were the preferred investment channel among Vietnamese investors that often yielded higher returns than others.

He said now could be a good time for investors to start looking for good deals as prices have had time to cool down significantly during last year.

According to the association, the tightening of monetary policy by the central bank and the government have shown signs of slowing down and could start opening up as soon as the second quarter of 2023.

Capital inflow could also be expected by the third quarter, he said.

Last year, total deposits by businesses and individuals in the banking system reached 900 trillion VND with individuals accounting for more than 565 trillion VND. The third quarter of 2023 would be a critical period as a large portion of said deposit would mature, with investors sitting on piles of cash looking for more profitable investments.

Reports from property brokers have been so far positive, with the market starting to see upticks in transactions and a higher number of requests for information by potential buyers.

Dang Quoc Viet, a representative from Smartland Real Estate Trading Floor in the northern province of Nghe An, said more prospective investors had made calls and visited his trading floor in recent weeks.

He said many had shown great interest in projects with good reputations and infrastructure, a markedly improved situation compared to last year. He added this could be a sign that investors' confidence in the market was returning./.