Real estate prices have far exceeded their real value, not suitable for people's ability.

On July 22, at the National Assembly House, Vice Chairman of the National Assembly Nguyen Duc Hai chaired a meeting between the National Assembly's Supervisory Delegation on "Implementation of policies and laws on real estate market management and social housing development from 2015 to the end of 2023" with the Ministry of Construction, Ministry of Natural Resources and Environment, Ministry of Planning and Investment, and Ministry of Justice .

Real estate prices are rising and getting higher, far exceeding real value; supply-demand imbalance in segments; housing supply is suitable for people's ability to pay - Photo: VGP/LS

Attending the meeting were Chairman of the Economic Committee Vu Hong Thanh, Deputy Head of the Standing Supervisory Delegation; Secretary General of the National Assembly, Head of the National Assembly Office Bui Van Cuong, Deputy Head of the Supervisory Delegation; Chairman of the Social Committee Nguyen Thuy Anh, Deputy Head of the Supervisory Delegation; and members of the Supervisory Delegation.

On the side of ministries and branches, there were Minister of Construction Nguyen Thanh Nghi; representatives of leaders of the Ministries of Planning and Investment, Natural Resources and Environment, Justice, etc.

At the meeting, the Supervisory Delegation listened to representatives of the leaders of the Ministries of Construction, Planning and Investment, Natural Resources and Environment, and Justice present reports on the promulgation and implementation of policies and laws on real estate market management and social housing development from 2015 to the end of 2023 under the authority and functions of the ministries.

Speaking at the meeting, Vice Chairman of the National Assembly Nguyen Duc Hai emphasized that the real estate market has created a large amount of infrastructure for society, helping production, business and service sectors develop and improve living conditions for all classes of people, contributing significantly to socio-economic development, economic growth of the country and the process of building and developing sustainable urban and rural areas towards industrialization and modernization. The promotion of social housing development has partly met the housing needs of low-income people, workers in industrial parks, policy beneficiaries and poor households.

However, through reports, discussions and monitoring in localities, the Vice Chairman of the National Assembly found that in recent times, the real estate supply has decreased sharply, mainly from previously implemented projects, with very few new projects; real estate prices have increased and are increasing; there are periods and times of "virtual" real estate fever, far exceeding real value; there is an imbalance between supply and demand in segments; the supply of housing suitable for people's ability to pay is not much while people's demand is great...

At the same time, project implementation is facing difficulties, many projects are behind schedule or cannot continue while the development of new projects is slowing down; new types of real estate (condotel, officetel, shophouse, resort villa...) are developing strongly while the legal basis is not complete and strict, leading to difficulties and obstacles.

Regarding the development of social housing, the Vice Chairman of the National Assembly said that the number of social housing supplied to the market is still far short of demand; most localities have not met the set targets for social housing development; the development of social housing and workers' housing has many bottlenecks; some places do not meet demand, leading to no buyers or renters while most localities lack supply; difficulties and limitations in land allocation and use; there is almost no investment capital from the budget for social housing; preferential mechanisms, tax and fee policies have not really been as effective as expected; administrative procedures and construction investment procedures are still overlapping, complicated, and prolonged...

The above limitations and shortcomings have subjective and objective causes clearly shown in the reports of 12 localities, 4 ministries and the opinions of the members of the Supervisory Delegation.

The Vice Chairman of the National Assembly requested that the 4 Ministries in charge of their fields should study and include circulars and decrees that are being issued or will be issued or propose amendments to relevant laws. Ministries and sectors should also closely follow the recommendations of localities, many of which are valid and stem from practical requirements and demands; and fully supplement the missing content in the report for the Supervisory Delegation.

At the meeting, members of the Monitoring Team requested the Ministry of Natural Resources and Environment to provide additional information assessing the coordination with the Ministry of Construction and the Ministry of Finance in monitoring and guiding the use of revenue from land use fees and land rental fees to support localities in implementing compensation and resettlement support; to provide a clearer assessment of the coordination with relevant ministries in directing, monitoring and guiding the use of land funds for social housing construction. The Ministry of Justice should clarify information and data on inspection, review and handling of legal documents and review work to ensure consistency and synchronization of the legal system.

At the same time, members of the Supervisory Delegation also suggested that ministries and branches need to clarify solutions to remove obstacles in granting certificates of ownership for tourist apartments (condotels); promptly issue guidelines for implementing land price determination plans, especially regulations that unify the assumptions applied in the calculation method according to the surplus method; regulations on conditions for subjects eligible to buy, rent, or hire-purchase social housing need to be more accurate and precise; report on the process, order, and sample procedures for applying for an investment license for a real estate or social housing project, clarifying how many steps are required, how many stamps and signatures are required, etc.

Some opinions also noted that the disbursement of some credit support packages, including the VND120 trillion credit support package, has not been effective due to complicated borrowing conditions, high interest rates and short loan terms; there has not been appropriate support from the state budget.

At the meeting, Minister of Construction Nguyen Thanh Nghi and representatives of the four ministries explained and clarified the issues raised by the Supervisory Delegation. In particular, Minister Nguyen Thanh Nghi emphasized that the 2023 Law on Real Estate Business has resolved many problems and obstacles arising in the management of the real estate market. Notably, the Law has added specific provisions on principles, measures, and authority to regulate the real estate market, thereby creating a tool for state management, avoiding confusion when regulating the market as in the past.

Speaking at the meeting, Chairman of the Economic Committee Vu Hong Thanh requested ministries and branches to strengthen coordination with localities in order to remove obstacles in the implementation of projects in the initial phase when the Law amending and supplementing a number of articles of the Land Law, Housing Law, Real Estate Business Law and Law on Credit Institutions recently passed by the National Assembly takes effect on August 1, especially for transitional projects.

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