On the afternoon of March 28, the Propaganda Department of the Ho Chi Minh City Party Committee coordinated with the city's Department of Information and Communications to hold a press conference on socio -economic issues and issues of public concern.
Responding to the information that Ho Chi Minh City has no new real estate projects for sale, Mr. Vu Anh Dung, Deputy Head of the Department of Housing Development and Real Estate Market, Ho Chi Minh City Department of Construction, said that in the first 2 months of the year, the Department received 2 applications requesting notification of eligibility for capital mobilization, however, after review, both projects were not eligible.
“Thus, there are new projects that want to open for sale but do not meet the conditions according to regulations. In fact, there are still housing products in the project that are being put on the market by the investor. These are projects that were previously announced by the Department of Construction to be eligible for sale according to regulations,” Mr. Vu Anh Dung shared.
The representative of the Department of Housing Development and Real Estate Market also informed that in the first two months of the year, real estate business revenue increased by 20.1% compared to the same period (data from the General Statistics Office). Therefore, the reason is not entirely due to concerns about the market psychology not recovering, but the supply of each type of housing will be determined by market demand and the business strategy of each enterprise.
Mr. Vu Anh Dung, Deputy Head of Housing Development and Real Estate Market Department, Ho Chi Minh City Department of Construction informed at the press conference.
Further assessment, Mr. Dung said that in the long term, the project's legal factors will greatly affect the supply. Data from the Department of Planning and Investment of Ho Chi Minh City shows that in 2022, 2 new housing projects were approved for investment policy, in 2023, 2 housing projects were approved for investment policy. In the first quarter of 2024, only 1 housing project was approved for investment policy.
In addition, many projects that have been approved for investment policy and investment approval are still stuck with procedures regarding financial obligations, land, planning, and some projects even have to review the project's legal status, land origin, etc. Therefore, when the Department of Construction considers the eligibility for capital mobilization, housing projects in these cases will not meet the requirements.
According to Mr. Dung, it is very difficult to determine specifically which projects are stuck and which have been resolved at each point in time, because housing projects will go through many different investment procedures according to different relevant legal regulations.
When the obstacles of this investment procedure are resolved, there may be obstacles of other investment procedures that need to be resolved. Therefore, the Department of Construction believes that this work will be carried out continuously and the number and content of the obstacles will change continuously.
Regarding solutions to clear the supply, Ho Chi Minh City has had many solutions and directions to resolve. Ho Chi Minh City People's Committee has issued an official dispatch to implement a number of solutions to remove obstacles and promote the safe, healthy and sustainable development of the real estate market.
In particular, the Ho Chi Minh City People's Committee assigned specific tasks to each department, branch, district, and Thu Duc city to carry out key contents under their responsibilities to jointly resolve difficulties in housing and real estate projects in Ho Chi Minh City.
In addition, Ho Chi Minh City also established a Working Group to remove difficulties and obstacles for investment projects, headed by Chairman of the City People's Committee Phan Van Mai and deputy heads being directors of departments and branches.
At the same time, the Ho Chi Minh City People's Committee has agreed on a solution to group projects with specific problems and assign direct responsibility to departments and branches to take the lead in resolving them. In case of problems beyond their authority, they will be reported to the Ho Chi Minh City People's Committee for consideration and decision.
At the end of 2022, the Ho Chi Minh City People's Committee assigned the Department of Construction to summarize the progress and settlement results of 148 housing projects and 189 recommendations compiled and proposed by the Real Estate Association, of which 19 recommendations were related to the handling function of the Department of Construction (accounting for 10%).
By the third quarter of 2023, the City had resolved 52/189 petitions (reaching 27.5%), of which the Department of Construction had resolved 16/19 petitions related to the Department's functions (reaching 84%).
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