Real estate prices are beyond people's means

In recent times, the Government and agencies have devoted much effort to stabilizing the real estate market through a series of policies. Accordingly, the real estate market has recorded positive signals, investor confidence is returning, and transaction volume is improving.

Sharing at the forum "Sustainable development of the real estate market and awarding certificates of livable projects 2023" on the morning of September 22, Mr. Hoang Hai - Director of the Department of Housing and Real Estate Market Management ( Ministry of Construction ) said that the first half of 2023 showed that many instabilities in the market continue to the present time.

"The operation of the Vietnamese real estate market in recent times is still part of a general problem of the gap between policies, development orientations and the actual operation of the market that cannot be solved overnight but requires a lot of time for testing or learning from experience," Mr. Hai analyzed.

In addition, the sharp decline in purchasing power and liquidity has also increased difficulties for businesses. Specifically, the decrease in supply has caused real estate, housing, and land prices to start increasing since the beginning of 2021.

"Most typically, apartment buildings continuously set new price milestones due to the decrease in the number of apartments put on the market, causing real estate prices to begin to exceed the investment capacity of the corresponding classes of people," he said.

Real Estate - Ministry of Construction: Real estate prices are beyond people's ability — Mr. Hoang Hai - Director of Department of Housing and Real Estate Market Management, Ministry of Construction.

In recent times, the Prime Minister has taken many drastic actions to remove difficulties for the real estate sector. Typically, the Prime Minister has established a Prime Minister's Working Group and issued many Official Dispatches directing ministries, branches and localities to carry out many tasks and solutions in the short term as well as the long term to remove and promote the real estate market to develop safely, healthily and sustainably.

However, through working with localities and businesses, Mr. Hai assessed that there are currently many housing and urban area projects being implemented that are facing difficulties, obstacles or have stopped implementation due to many reasons, typically reasons related to land laws.

The reasons are related to the law on planning, the authority to locally adjust the general planning; the conditions and time for reviewing, updating, and adjusting the planning to ensure consistency in construction planning including general planning, zoning planning... or reasons related to the law on investment.

In addition to legal difficulties, there are many problems related to social housing, credit sources, corporate bond issuance, and implementation organizations when the legal framework is available but implementation is still slow for many reasons. In addition, many information flows have caused confusion for investors, affecting the lives, markets, and businesses.

Real Estate - Ministry of Construction: Real estate prices are beyond people's ability (Figure 2). — The real estate market is expected to be more positive in the coming time (Photo: Huu Thang).

However, after the Government's determination was transformed into action, Mr. Hai commented that the real estate market has shown initial positive signs of recovery, the market situation has improved, the second quarter of 2023 is generally less difficult than the first quarter of 2023 and there are signs that it will be even more positive in the coming time.

However, Mr. Hai said that in the coming time, ministries, branches and localities still need to focus on reviewing and removing procedural difficulties to complete investment preparation procedures, selecting investors to implement real estate projects, commercial housing projects, social housing projects according to the provisions of the law on land, the law on housing, the law on investment to increase the supply of housing, promote the development of the real estate market in the area. Focus on removing difficulties, promoting the development of the real estate market for both sellers and buyers...

At the same time, urgently organize the establishment, appraisal and approval of urban and rural construction planning, land use planning and plans.

Review and supplement urban planning and industrial park planning, ensure adequate land fund for social housing and worker housing development, and strictly implement regulations on reserving 20% of residential land fund invested in technical infrastructure in commercial housing projects and urban areas for investment in social housing development according to housing laws.

In addition, it is also necessary to be determined to publicly and transparently disclose information on construction planning, the list and progress of infrastructure development projects, real estate projects, especially large projects and mergers.

Monitor and grasp information and developments of the market and take timely measures to stabilize the market, preventing price fever and real estate bubbles in the area .

Source