They said liquidity has improved significantly in recent months, which is encouraging greater investment in new housing projects.

The Novaland Group, for instance, plans to unveil 15 new projects worth dozens of billions of dong this month.

The Hung Thinh Group too has announced plans to pump in thousands of billions of dong into property projects.

Its chairman, Nguyen Dinh Trung, said, "The company has just completed negotiations with the Binh Trieu Construction and Engineering Company to develop the VND2 trillion (US$95.2 million) Binh Trieu housing project in HCM City’s Binh Thanh District.

On its second founding anniversary in early September the National Housing Organisation announced that it would develop 14 projects costing VND20 trillion ($941.35 million) in Ha Noi, HCM City, Binh Duong, Quang Ngai, and An Giang.

It has already invested VND4 trillion ($188.27 million) in projects like Fist Home in HCM City’s Districts 9 and 12, Fist Home Binh Duong, and Fist Home Ha Noi.

Vingroup’s VND30 trillion ($1.41 billion) Vinhomes Tan Cang project is under development and expected to be completed in 2017.

Luong Tri Thin, chairman of the Dat Xanh Real Estate Company, revealed that his company is scouring for lands for new housing projects. It recently bought 7.5 hectares of land in District 9.

Property developers are returning not only to HCM City but also neighbouring provinces like Dong Nai and Binh Duong.

In Dong Nai, Amata Vietnam JSC, a subsidiary of Thai group Amata, has signed an agreement with the province to build a $530 million hi-tech park and a commercial and service area in rural Long Thanh District.

Many well-known developers have also come back to Binh Duong including Tac Dat Tac Vang Company, which has tied up with Becamex IJC to build a luxury commercial complex called IJC@VSIP.

Recovery

Deputy Minister of Construction Nguyen Tran Nam said the real estate market has recovered strongly and seen a sharp increase in the number of transactions.

In the first seven months of the year some 5,100 transactions were done in Ha Noi, two times the figure recorded in the same period last year. In HCM City the number was up 30 per cent to 4,500.

As a result, inventories have fallen sharply from VND120 trillion ($5.65 billion) worth to VND83 trillion ($3.90 billion).

Nam said "Prices have become rather stable. The phenomenon of developers slashing prices has already stopped. The rates have even increased at some projects."

He attributed the recovery to several reasons, including changes to the legal framework comprising the Land Law, the Law on Tendering, Housing Law, Investment Law, and Real Estate Business Law.

The legal amendments have had a significant impact on the housing market.

The speedy disbursement of the VND30 trillion preferential credit for social housing has been another factor, helping improve the market’s liquidity.

Le Chi Hieu, chairman of the Thu Duc Housing Development Company, concurred with Nam, saying that the number of transactions has been rising since late last year.

"The real estate market has not yet escaped the difficult situation.

"But the changes in the economy, interest rate decline, the Government’s market support policies, and recovery of the securities markets have had a strong effect on it."