The National Assembly's monitoring delegation pointed out that in Hanoi and Ho Chi Minh City, there is no longer a segment of apartments with prices suitable for the income of the majority of people.
High real estate prices, many abandoned urban areas
On October 28, the National Assembly discussed the National Assembly's Supervisory Delegation's Report on the implementation of policies and laws on real estate market management and social housing development (SHS) 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, Deputy Head of the Monitoring Delegation, said that by the end of the monitoring period, there were about 3,363 commercial housing and urban area development projects that had been and were being implemented with a land use scale of about 11,191 hectares; 413 industrial parks were established with a total industrial land area of about 87,700 hectares. Regarding social housing, about 800 projects have been implemented with a scale of 567,042 units, of which: 373 projects have been completed with a scale of 193,920 units; 129 projects have started construction with a scale of 114,934 units; 298 projects have been approved for investment with a scale of 258,188 apartments.
Monitoring results show that real estate and social housing still have many shortcomings, inadequacies, unsustainable development, and imbalance between supply and demand. Real estate prices are still high compared to the income of the majority of people. Many urban areas are abandoned, and the management of mini apartments still has many shortcomings. There is no effective solution to handle and resolve old apartment buildings that do not ensure living conditions for people. Many projects are facing difficulties and are slow to be implemented. New types of real estate face many legal problems, lacking clear and specific regulations.
Regarding the promulgation of policies and laws, there are some provisions that are overlapping, inconsistent, unsynchronized, not suitable to reality, slow to be reviewed, revised, supplemented, unclear, lacking specificity and detail, leading to inconsistency in understanding and in the implementation process. Many documents detailing the implementation of laws are slow to be promulgated.
The implementation of the Housing Development Program and Plan, the Investment Project to build at least 1 million social housing apartments for low-income earners and industrial park workers (2021-2030 period) has not met the requirements, most localities have not completed the social housing development target. The state budget capital has not been properly allocated, so most localities only develop social housing built with non-state capital. "The slow land valuation situation is happening in many localities, which is the main obstacle leading to the stagnation of many real estate projects. The granting of certificates of land use rights, house ownership rights and assets attached to land is still problematic, especially for new real estate products" - Mr. Thanh pointed out.
Condotel, officetel almost "frozen"
The monitoring team also found that the structure of real estate products is unreasonable, there is an imbalance between supply and demand, mainly aimed at the high-end segment and for financial investment purposes, there is a lack of products suitable for the payment capacity of the majority of people while the demand of the people is large. The supply is mainly from projects implemented in the previous period, very few new projects. Some projects have encountered legal problems, especially in granting certificates of land use rights, house ownership rights and other assets attached to land. Many real estate businesses do not have enough financial capacity, lack implementation experience, leading to ineffective projects, low quality real estate products. In addition, the situation of businesses mobilizing capital beyond their ability to balance cash flow to expand land funds, expand business investment, use many financial leverage tools, leading to when investment procedures and processes are prolonged, the burden of financial costs increases, making it difficult to reduce real estate prices to their real value. Condotel and officetel real estate is almost "frozen".
“Many urban areas are abandoned,” said Mr. Thanh, adding that real estate prices have skyrocketed compared to the income growth of the majority of people. In Hanoi and Ho Chi Minh City, there is no longer a segment of apartments with prices suitable for the income of the majority of people. The number of social housing apartments supplied to the market is far short of demand. Most localities have not met the set targets for social housing development. On the contrary, there are places that do not meet demand, leading to no buyers or renters, wasting resources, negatively affecting the macroeconomic development situation, the “health” of real estate businesses as well as commercial banks, increasing risks for the bond market, reducing state budget revenue, and increasing bad debt. On the other hand, it causes social instability, labor, employment, and housing security for people.
Subjective causes are the main ones.
The monitoring team believes that the above-mentioned shortcomings and limitations are due to many objective and subjective reasons, but the subjective reasons are the main ones. Accordingly, the organization of law enforcement is still a weak link, with low efficiency. Localities have a fear of making mistakes and a term mentality, leading to the direction of project implementation in the area not being closely followed, and procedures not being handled promptly. There is no attention paid to the development of social housing, housing for workers and laborers in industrial parks. There is no attention paid to planning and allocating land funds for independent social housing projects. The leadership and direction of the development and completion of laws, inspection and supervision of law enforcement in some places are not timely and close. Awareness of law compliance in some places is not high. Handling of law violations is slow and not resolute.
Source: https://daidoanket.vn/lo-dien-nhieu-bat-cap-ve-thi-truong-bat-dong-san-va-nha-o-xa-hoi-10293216.html
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