Many shortcomings in the real estate and social housing market have been revealed.

The National Assembly's supervisory delegation pointed out that in Hanoi and Ho Chi Minh City, there is no longer a segment of apartment buildings with prices affordable to the majority of the population.

High property prices, many urban areas left abandoned.

On October 28th, the National Assembly discussed the Report of the National Assembly's Supervisory Delegation on the implementation of policies and laws on real estate market management and social housing development from 2015 to the end of 2023.

At the meeting, reporting on the results of monitoring the implementation of policies and laws on real estate market management and social housing development from 2015 to the end of 2023, Mr. Vu Hong Thanh, Chairman of the National Assembly's Economic Committee and Deputy Head of the Monitoring Delegation, stated that by the end of the monitoring period, approximately 3,363 commercial housing and urban development projects had been and were being implemented with a land use scale of approximately 11,191 hectares; 413 industrial parks were established with a total industrial land area of ​​approximately 87,700 hectares. Regarding social housing, about 800 projects had been implemented with a scale of 567,042 units, of which: 373 projects were completed with a scale of 193,920 units; 129 projects had commenced with a scale of 114,934 units; 298 projects have received investment approval, comprising 258,188 units.

Mr. Vu Hong Thanh reports to the National Assembly (Photo: Quang Vinh)

Monitoring results show that the real estate and social housing sectors still have many shortcomings and inadequacies, unsustainable development, and supply-demand imbalances. Real estate prices remain high compared to the income of the majority of the population. Many urban areas are abandoned, and the management of mini-apartment buildings is still inadequate. There are no effective solutions to address and resolve the issues of old apartment buildings that do not meet living conditions for residents. Many projects face obstacles and delays in implementation. New types of real estate encounter many legal obstacles and lack clear and specific regulations.

Regarding the policy and law-making process, some regulations are overlapping, inconsistent, not synchronized, not in line with reality, slow to be reviewed, amended, or supplemented, unclear, lacking specificity and detail, leading to inconsistencies in interpretation and implementation. Many detailed implementing regulations are slow to be issued.

The implementation of the housing development program and plan, and the investment project to build at least 1 million social housing units for low-income earners and industrial zone workers (2021-2030), has not met expectations, with most localities failing to complete the social housing development target. State budget funds have not been adequately allocated, resulting in most localities only developing social housing projects built with non-state capital. "The delay in land valuation in many localities is a major obstacle leading to the stagnation of many real estate projects. The issuance of land use rights certificates, house ownership certificates, and certificates for assets attached to land remains problematic, especially for new real estate products," Mr. Thanh pointed out.

Condotel and officetel projects are virtually "frozen".

The monitoring team also noted that the structure of real estate products is unreasonable, with an imbalance between supply and demand, mainly targeting the high-end segment and financial investment purposes, lacking products suitable for the affordability of the majority of the population while demand is high. The supply mainly comes from projects implemented in previous periods, with very few new projects. Some projects face legal obstacles, especially in obtaining land use rights certificates and ownership certificates for houses and other assets attached to the land. Many real estate businesses lack sufficient financial capacity and implementation experience, leading to inefficient projects and low-quality real estate products. Furthermore, businesses are raising capital beyond their cash flow capacity to expand land reserves and business investments, using many financial leverage tools. This leads to prolonged investment procedures, increasing financial costs and making it difficult to bring real estate prices down to their true value. The condotel and officetel real estate market is almost "frozen".

“Many urban areas are abandoned,” Mr. Thanh said, adding that real estate prices have skyrocketed compared to the increase in income for the majority of the population. In Hanoi and Ho Chi Minh City, there are no longer any affordable apartment units suitable for the majority of people. The number of social housing units supplied to the market is far short of demand. Most localities have not met their social housing development targets. Conversely, in some areas, the supply does not meet demand, leading to a lack of buyers and renters, wasting resources, negatively impacting macroeconomic development, the “health” of real estate businesses and commercial banks, increasing risks for the bond market, reducing state budget revenue, and increasing bad debts. On the other hand, it causes social instability, affecting labor, employment, and housing security for the people.

The main cause is subjective factors.

The supervisory delegation concluded that the aforementioned shortcomings and limitations stemmed from both objective and subjective causes, but subjective causes were the primary factor. Accordingly, the organization and implementation of laws remain weak and ineffective. Local authorities are prone to fear of making mistakes and a short-term mentality, leading to inadequate guidance on projects and untimely handling of procedures. There is insufficient attention paid to the development of social housing and housing for workers in industrial zones. There is also a lack of focus on planning and allocating land for independent social housing projects. Leadership and guidance in the development and improvement of laws, as well as inspection and supervision of law enforcement, have been untimely and inadequate in some areas. Awareness of law compliance remains low in some places. The handling of legal violations is slow and lacks decisiveness.

Source: https://daidoanket.vn/lo-dien-nhieu-bat-cap-ve-thi-truong-bat-dong-san-va-nha-o-xa-hoi-10293216.html