Controlling the risk of speculation and price inflation in the real estate sector.
On the morning of March 11, Deputy Prime Minister Tran Hong Ha chaired an in-person and online meeting of the Prime Minister's working group on reviewing, urging, and guiding the removal of difficulties and obstacles in the implementation of real estate projects for localities and enterprises.
At the meeting, the Deputy Prime Minister emphasized the paradox of having an excess of high-end real estate segments but lacking products for middle- and low-income people.
According to the Deputy Prime Minister, the State will do its utmost, with great determination, and make great efforts to carry out what is within its responsibility and authority. At the same time, investors and real estate businesses must recognize their responsibility in overcoming the paradox, resolving the situation of price inflation and price increase so that supply and demand meet...
Deputy Prime Minister Tran Hong Ha speaks at the working group meeting (Photo: VGP).
Regarding the shortcomings in real estate prices, at the meeting, Deputy Governor of the State Bank Dao Minh Tu said that the real estate sector always goes hand in hand with the banking sector and is related to a series of other sectors such as production, supplies, construction materials...
"The banking industry strictly controls credit in risky areas, which in the real estate industry is speculation and price inflation, making it difficult to sell products, unable to circulate capital, and difficult to recover debts," said Mr. Tu.
Reporting on some problems in the 120,000 billion VND social housing loan package, Mr. Tu said that the key issue here is to create conditions for demand to access supply and boost supply, on that basis, reduce the objective price of the market on the supply-demand relationship as well as with projects, corporations that push up prices, monopolize and speculate in real estate.
Representatives of BIDV, Agribank, VietinBank, Hanoi People's Committee... said that the difficulty in disbursing the 120,000 billion VND commercial credit package for social housing is the investor's ability to meet the requirements of financial capacity, collateral, project liquidity, and the limit on profit margins of social housing projects...
"Not all social housing construction enterprises that BIDV approaches have a need for loans, because many projects do not have full conditions for implementation, or are using their own capital," said Mr. Tran Phuong, Deputy General Director of BIDV.
Some businesses have proposed shortening the time to review legal procedures and land use origins for social housing projects; simplifying administrative processes and procedures; loosening credit access conditions for investors and buyers with low and middle incomes...
Regain investor confidence
Concluding the meeting, Deputy Prime Minister Tran Hong Ha emphasized that the issue is to regain investors' trust in a systematic, synchronous, scientific, and responsive manner in the management of real estate, land, credit, capital, etc.
The Deputy Prime Minister requested the Ministry of Construction to summarize the main problems that can be solved in the recently passed amended and supplemented laws on land, housing, real estate business, etc., and then study the plan to advise and submit to the Government and the National Assembly to issue documents within their authority to allow application before the law takes effect.
He also assigned the working group to compile statistics on the number of real estate projects that have been allocated land but are facing legal problems; develop criteria for qualified real estate investors; summarize and codify the pilot project allowing localities to locally adjust planning for real estate projects without reducing general criteria.
At the same time, expand access to social housing for low- and middle-income earners and enterprises in industrial parks; provide full guidance for localities to comply with existing mechanisms and policies on land recovery, site clearance, resettlement, and land pricing, etc.
Overview of the meeting (Photo: VGP).
The Deputy Prime Minister assigned localities to specifically calculate people's needs, fully allocate land funds for housing projects, renovate old apartments, in the process of establishing and implementing urban and rural planning; report on the activities of local working groups on removing difficulties and obstacles in implementing real estate projects.
Regarding capital sources for social housing projects, the Deputy Prime Minister requested the State Bank and the Ministry of Finance to study long-term fiscal policies to support interest rates for preferential credit loans; establish a social housing investment fund including the State budget, contributions from enterprises from the 20% cost of building social housing in commercial housing projects and other legal sources to support enterprises building social housing and people buying social housing, ensuring harmony between the implementation of social policies and market mechanisms.
The Deputy Prime Minister hopes that businesses and investors will calculate reasonable costs, offer commercial and social housing products at suitable prices, ensure quality, design, aesthetics and reasonable profit levels, harmonize the interests of the State and the people; and contribute to the healthy development of the real estate market.
Some positive changes in the real estate market
Deputy Minister of Construction Nguyen Van Sinh said that recently, the real estate market in general and the removal of difficulties in implementing real estate projects have had many positive changes.
Hanoi currently has 404 projects, of which 81 projects have been removed from the list of slow-to-implement projects; 10 projects have had their land reclaimed and operations terminated; 67 projects continue to urge investors to speed up implementation progress. Hanoi is continuing to remove difficulties and obstacles for 246 projects according to the guidance of the Ministry of Construction and other ministries and branches.
Similarly, Ho Chi Minh City has implemented solutions: according to its authority, 33/72 projects requested by the working group; 44/148 projects proposed by the City Real Estate Association; and is continuing to implement solutions to remove difficulties and obstacles for 143 projects...
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