Businesses must reduce house prices and sell assets, they cannot sit still and wait for bank support.

ANTD.VN - Banks believe that in difficult times, real estate businesses also need to sell assets, accept break-even or a small loss, and coordinate with banks to pay debts instead of sitting still waiting for banks to support or extend...

The market is out of balance between supply and demand.

According to the Ministry of Construction, in recent times, facing the difficulties of real estate enterprises, the Government and the Prime Minister have issued many important instructions and the Working Group of the Prime Minister, ministries, branches, and localities, including the Ministry of Construction, and the State Bank (SBV) have actively grasped the situation, specifically assessed the difficulties and obstacles related to the real estate business sector, in order to deploy solutions to remove them and provide specific instructions for real estate projects.

Accordingly, the real estate market has shown more positive signs, having overcome the most difficult period.

Mr. Hoang Hai - Director of the Department of Housing and Real Estate Market Management, Ministry of Construction said that compared to the first quarter, the number of projects under construction in the third quarter increased by 123.64%.

The transaction volume has also improved over each quarter. Specifically, the third quarter recorded nearly 6,000 transactions, 1.5 times higher than the second quarter, more than twice as high as the first quarter, but still only about 10% compared to the pre-pandemic period.

However, Mr. Hai also pointed out the fact that the supply structure of real estate products is unbalanced, with only 40% being housing projects, 30% being resort projects, and the rest being other types of projects. The number of completed commercial housing projects nationwide has tended to decrease recently.

Also stating that the real estate market is in a state of great imbalance between supply and demand, Governor of the State Bank of Vietnam Nguyen Thi Hong said that to develop a safe, healthy and sustainable real estate market, it requires solutions on the supply side, which requires policies to increase the supply of social housing.

Governor of the State Bank of Vietnam Nguyen Thi Hong

Currently, real estate credit is growing slowly. According to the assessment of the State Bank of Vietnam, the demand for home loans from workers and low-income earners is still very low, although the demand for home purchases is very high. The reason is that many people have housing needs but they cannot afford to borrow because their income is very low.

“There needs to be a solution to remove this obstacle. The Housing Law has proposed a number of solutions, such as: removing criteria and conditions; allowing businesses to buy houses to rent to workers… These create a policy mechanism to support housing for people, not necessarily through workers taking out loans to buy houses,” said the Governor.

Each business has 30-40 projects, if you keep them, how can the bank support them?

According to the Governor of the State Bank of Vietnam, the real estate market has developed very rapidly in recent years, partly due to the huge investment demand. To bring back the demand for real estate investment, the issue of trust is extremely important, the key to trust lies in the legal issue. If the legal issue is resolved, investors will feel very secure when buying houses, transferring houses... Therefore, according to Ms. Hong, businesses themselves also need to follow the direction of the Government in Resolution No. 33, which is to have good corporate governance, balance profit targets, product structure, consider reducing selling prices... At that time, along with the solutions of ministries, branches and localities, the investment demand of this market will be encouraged.

Regarding credit for the real estate market, the Governor requested credit institutions to continue to review and examine procedures to shorten credit approval time as much as possible, but at the same time also required businesses to be ready to be transparent in their records, clear and healthy in their operations, and cooperate with credit institutions so that both sides can discuss and reach an agreement.

Banks also believe that, in addition to removing difficulties from the Government, ministries and banks, businesses themselves must also change.

VPBank General Director Nguyen Duc Vinh said that businesses also need to look back and change themselves, to see if they are operating healthily and providing transparent information.

"VPBank is one of the banks that lends the most on real estate in the market, but now the bank itself is scared," he said.

Mr. Nguyen Duc Vinh also said that if in the past, real estate businesses accumulated many projects during the period of easy capital mobilization, then when difficult times came, they had to sell off assets, accept break-even or a small loss, and coordinate with banks to pay off debts instead of sitting still waiting for banks to support or extend...

"Real estate businesses must also see that the situation has changed. Each business holds 30-40 projects at the same time, but just sits there, hoping for bank support, how can the bank support?", Mr. Vinh commented.

Regarding interest rates, Mr. Vinh said that interest rates have decreased significantly, including old loans. However, interest rates are determined by the market, and it is impossible to ask the Government for a preferential interest rate, which is non-market.

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