Many projects have been resolved
In the first 8 months of 2023, after the Government introduced a series of active solutions to remove difficulties in credit and legal matters, the real estate market has had many positive changes. According to analysts from CBRE, many projects have started to be implemented again. As a result, supply has improved and absorption of real estate products, especially apartments, has increased. In particular, projects with good legal status and well-planned planning located in localities with strong development in transport infrastructure have received special attention from investors. Compared to 2020 - 2021, the business results of real estate enterprises are not positive. This is understandable because real estate enterprises are still under pressure on cash flow and liquidity in the market.
Recently, the Government's Special Task Force reviewed 180 real estate projects in Ho Chi Minh City and 175 projects in Hanoi. After classifying the project groups, Ho Chi Minh City directed and resolved 67 projects. Of these, 28 projects were under the guidance and supervision of the Task Force, and 39 projects were reviewed by local authorities.
In Hanoi, we have answered, provided direct guidance and written guidance on about 20 petitions related to difficulties and obstacles of more than 100 projects. All projects have had their issues related to site clearance resolved, difficulties and obstacles in technical infrastructure connection considered and proposed to be resolved, creating conditions for investors to continue implementing the project, ensuring progress according to legal regulations; approving regulations for renting houses at the project...
Mr. Nguyen Van Khoi - Chairman of the Vietnam Real Estate Association assessed that these efforts of localities and working groups have initially achieved some positive results, contributing to increasing confidence in the real estate market. With the drastic participation of competent authorities, especially through the effective coordination of the Government Working Groups, the Prime Minister's Working Group will contribute to solving most of the real estate projects that are facing difficulties. In addition, the State Bank has directed commercial banks to adjust interest rates down 4 times, aiming to lower the lending level to support real estate businesses and home buyers to have easier access to credit capital. This will be an important lever to promote market liquidity in the coming time.
Remedial policies often have a time lag, so economic experts believe that the Government needs to classify real estate businesses to handle them in different directions. Mr. Nguyen Van Dinh - Chairman of the Real Estate Brokerage Association said that for real estate businesses facing problems with inventory, the State can help organize investment promotion, connect with foreign businesses to add more consumption channels. For financially weak businesses, with many projects entangled in legal issues but not enough resources to implement, the State can arrange to buy back or "pour capital" to support. Real estate businesses must also accept mergers or restructuring in this context.
“The mechanisms and policies that the Government has put in place are creating positive impacts on the real estate market. On the part of real estate businesses, it is necessary to orient development and have sustainable recovery solutions. In particular, in the issue of product structure, it is necessary to carefully calculate the residential real estate segment to truly serve the needs of the people so that when the real estate market warms up again, it will lead to a recovery in the production and business activities of their own businesses,” Mr. Dinh emphasized.
Preparing future project supply
A survey by the Vietnam Real Estate Brokers Association of 500 businesses operating in the real estate sector showed that, in terms of supply, up to 43% of surveyed businesses said that new mechanisms and policies issued since the beginning of 2023 have had a positive, very positive impact on real estate supply.
Overall, over the past 8 months, the supply situation, especially social housing and affordable housing products in the real estate market, has shown positive signs. Specifically, in the last months of the second quarter and the beginning of the third quarter, in Ho Chi Minh City, Hanoi, and Hai Phong, a series of social housing projects have been implemented and opened for sale.
According to Mr. Ha Quang Hung - Deputy Director of the Department of Housing and Real Estate Market Management (Ministry of Construction), this change comes from two main sources. Firstly, some projects are stuck in the final legal stages, which have been resolved and promptly brought to the market. Secondly, some projects were previously eligible for sale but investors delayed the sale due to concerns that the sluggish market would affect the sales plan. With the drastic actions of the Government, ministries, branches, investors are reassured and have more confidence to decide to open for sale. In addition, it must be added that project legal issues cannot be resolved in a short time, so the fact that real estate businesses are worried about resolving legal issues at this time will help ensure the future supply of the real estate market.
Currently, real estate enterprises are proactively organizing reviews and restructuring of enterprises, investment portfolios, product structures... to ensure that they are consistent with the enterprise's capacity and consistent with the real needs of society; Urgently reviewing, completing and reporting, proposing competent agencies and individuals to consider and resolve legal procedures of the project to quickly deploy and implement the project in accordance with legal regulations.
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