$4.8B worth of real estate bonds to be redeemed in 2024

In its outlook for 2024, FiinRatings, the credit rating division of FiinGroup, said housing developers continue to face pressures with respect to liquidity, access to capital, interest rates, and recession.

But those with good brands, guaranteed project quality, land plots with clear documents, and ability to execute projects could access a range of capital mobilization channels, and become resilient, it said.

FiinRatings believed important legislation such as the newly passed amendments to the land, real estate businesses and housing laws would create a foundation for recovery, but warned new policies often take time to have an effect.

Most developers have faced pressure to raise capital for their projects. Having to find options to refinance old debts at the same time has increased their risks.

According to the Ministry of Construction, real estate supply continued to be limited in all segments last year.

There were 52 completed housing projects with nearly 16,000 units, less than half the 2022 number, and 17 condotel projects, down 44%, it said.

In the first three quarters transactions in the property market fell by 59% to 324,700.