Businesses focus on developing social housing

According to HoREA, from 2022 to present, the Government and State agencies have addressed important recommendations and proposals from Associations and the real estate business community in the spirit of listening, considering and resolving at all three levels. However, real estate businesses have not actively implemented the Prime Minister 's instructions on "restructuring segments and reducing product prices" so far.

Social housing projects still cannot meet supply.

HoREA believes that for high-end housing projects and mid-range housing projects, some investors have reduced selling prices, but the level of reduction is not significant. Mostly, investors have implemented discount and promotion policies, and after-sales services that are beneficial to customers to "try to maintain prices", because construction costs, materials, labor, financial costs, management costs have all increased and there are also "unnamed costs".

To implement the Prime Minister 's directive on reducing housing prices to suit people's income, the Association found that the number of businesses with housing products brought to market in the past 3 years is not much.

The Association recommends that real estate corporations and businesses reduce housing product prices, reduce profit expectations, not "anchor high prices", increase discounts and have promotional and after-sales policies to stimulate consumer demand in the real estate market to increase "market confidence", create cash flow and liquidity for businesses according to our grandparents' experience that "it is better to sell at a loss than borrow at a profit".

The Association recommends that real estate corporations and businesses need to shift their investment to the affordable housing segment suitable for people's income and participate in the implementation of the "Program to develop at least 1 million social housing apartments in the period 2021-2030" to be able to access the VND 120,000 billion credit package with interest rates 1.5-2% lower than normal commercial interest rates, especially for real estate corporations and businesses that have registered to participate in this Program.

Competent State agencies focus on removing legal obstacles to increase the supply of housing projects in the market, which is the basis for increasing the supply of affordable housing and social housing. This increase in housing supply will help stabilize housing prices according to the law of supply and demand and the law of market competition.

Propose that the Ministry of Construction promptly submit to the Government detailed regulations on "stages of housing construction investment projects" to standardize the administrative procedures for approving commercial housing projects and social housing projects to shorten the time for implementing investment procedures using land. Propose that the National Assembly Standing Committee consider and complete the Draft of the revised Land Law to develop mechanisms and policies on effective and economical land use to implement real estate projects.

"Thereby creating favorable conditions for investors to access land, ensuring correct and sufficient collection, not causing loss of state budget revenue, not causing loss of public assets which are land resources and creating a transparent investment environment" - HoREA leader affirmed.

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