Prime Minister of Vietnam points to difficulties in the real

Prime Minister of Vietnam points to difficulties in the real estate market

Minh Chinh made the remark while speaking at a nationwide online conference aimed at addressing the issues faced by the sector to achieve safe, healthy and sustainable development.

This is an opportunity to discuss and analyze the current situation and its causes, especially the subjective ones, and to propose goals, tasks and solutions for the development of the real estate market in accordance with the policies, guidelines and laws of the Party and the State and accordingly of the socialist-oriented market economy, he said.

The Prime Minister announced that the cabinet will soon adopt a resolution on the real estate market to promote its safe, healthy and sustainable development based on balancing the interests of the state, individuals and companies with harmonized benefits and shared risks.

In another part of his speech, Minh Chinh, quoted by the VNA news agency, referred to the country’s socio-economic situation in 2022 and the first months of 2023, which he believes have many bright and noteworthy points.

The macroeconomic situation is stable, inflation is under control and the best balance sheets are assured, especially in the context of difficult global circumstances affecting the domestic market, he stressed.

Recently, real estate companies have faced difficulties, particularly in accessing credit loans, issuing bonds and mobilizing capital from clients, leading to delays in the execution of planned projects.

According to the Ministry of Construction, the supply of housing was low last year, especially for the low-income segment.

The structure of affordable real estate products gradually decreased from 20 percent in 2019 to less than 5 percent in 2022, while the number of projects developed was very limited.

According to data from the portfolio itself, released last September, the country has registered just 40 new commercial housing plans since the beginning of 2022, up 41 percent compared to the same period last year.

On the other hand, apartment prices in this capital rose 13 percent year-on-year, marking the fourth straight year of growth, while prices for single-family houses and villas multiplied by two and 2.5 times, respectively, on the back of growth in demand.

According to the economist and member of the National Financial and Monetary Advisory Council of Can Van Luc, the situation of the real estate market is hampered by the inconsistency of property management regulations and the lack of clear guidelines on transparency and disclosure of the planning process.