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| Regular press conference for the fourth quarter of 2023 on the afternoon of January 12. (Source: Construction Newspaper) |
On the afternoon of January 12, in Hanoi, the Ministry of Construction held a regular press conference for the fourth quarter of 2023 and announced information on the real estate market in the fourth quarter and the whole year of 2023.
Many outstanding results
Speaking at the press conference, Deputy Minister of Construction Nguyen Van Sinh commented that in 2023, the construction industry achieved a number of outstanding results. The entire industry exceeded and achieved 10/12 set targets, of which 5/5 targets assigned by the Government were completed. Some key targets such as the construction industry's growth increased by 7.06% (contributing 0.51 percentage points to the overall GDP, although the level was lower than previous years, it was still a large contribution to the country's GDP).
The urbanization rate reached 42.7%; The average housing area nationwide reached 26m2 floor/person; The rate of urban residents supplied with clean water through the centralized water supply system was estimated at 96%; The rate of clean water loss and revenue loss reached 16%; The rate of wastewater collection and treatment reached 17%.
In all three pillars: Institutional improvement; Strengthening urban management development; Housing and real estate market development, the Ministry of Construction has achieved certain results.
Specifically, the work of perfecting institutions and laws has been given attention, closely and regularly directed, with many innovative and creative ways of doing things, and has completed a large volume, ensuring the set plan. The Ministry has completed, advised the Government, submitted and had the National Assembly approve the Housing Law 2023, the Real Estate Business Law 2023 at the 6th Session of the 15th National Assembly.
The Ministry has also completed the Government's report on the Law on Urban Planning and Rural Planning; the Law on Urban Development Management; the Law on Water Supply and Drainage; submitted and received from the Government and the Prime Minister 1 Decree, 1 Resolution, 1 Directive, 8 Decisions, 3 Official Dispatches; issued under its authority 11 Circulars...
To address the urgent need for social housing and housing for industrial park workers, the Ministry has submitted and received approval from the Prime Minister for the Project "Investing in the construction of at least 1 million social housing apartments for low-income earners and industrial park workers in the period 2021 - 2030"...
The Ministry has also developed and submitted to the Government for promulgation Resolution No. 33/NQ-CP dated March 11, 2023 on a number of solutions to remove obstacles and promote the safe, healthy and sustainable development of the real estate market; Actively coordinate with the State Bank to deploy a credit package of VND 120,000 billion to provide loans to investors and home buyers of social housing projects and workers' housing projects at low interest rates...
"To achieve the above results, in addition to the efforts of the entire construction industry, the Ministry of Construction highly appreciates the coordination and support of press and media agencies in propaganda and orientation work, contributing to helping public opinion understand and create social consensus for the positive results that the construction industry has achieved.
Along with that, the press is interested in promptly reflecting on the shortcomings, problems and limitations arising from practice, so that the Ministry has a basis to absorb and perfect legal policies, make proposals to competent authorities, and at the same time better perform State management work within the scope of assigned functions and tasks," Deputy Minister Nguyen Van Sinh affirmed.
Real estate supply tends to improve
Regarding the real estate market in the fourth quarter and the whole year of 2023, Director of the Department of Housing and Real Estate Market Management Hoang Hai said that in 2023, the whole country had 68 newly licensed real estate projects with a scale of nearly 25,000 units, 71 completed construction projects with a scale of more than 29,000 units, and 197 projects eligible to sell future housing.
The volume of real estate transactions in the last 6 months of the year increased compared to the beginning of the year. The total transaction volume (apartments, individual houses, land) in the last 6 months of the year was about 113%, an increase of 13% compared to the first 6 months of 2023. Of which, apartments and individual houses decreased by 17%, land increased by 28.4% compared to the first 6 months of 2023.
Regarding social housing development, in the fourth quarter of 2023, the country has 16 social housing projects for low-income people and industrial park workers with a scale of 9,302 units completed or licensed for construction, of which 7 projects were completed with a scale of 4,019 units.
In general, in 2023, the whole country had 44 social housing projects with a scale of 36,262 units completed or licensed, starting construction, of which 28 projects were completed, with a scale of 13,864 units.
With this number, up to now, there are 495 social housing projects with a scale of 402,898 completed or under construction nationwide.
Regarding the disbursement of the VND120,000 billion credit package for social housing, 27 provinces have announced a list of 63 projects eligible for preferential loans with a loan demand of VND27,966 billion. Up to now, a number of social housing projects in localities have been disbursed with a capital of about VND179.5 billion.
According to Director Hoang Hai, since the end of 2022, the real estate market has encountered many difficulties, poor liquidity, many real estate projects under implementation have had to be suspended or delayed. Housing prices have increased.
This situation will continue until the first half of 2023, mainly due to problems related to the project's legal issues and in accessing credit loans, issuing bonds and mobilizing capital, so the project's progress must be delayed or temporarily suspended... leading to a rather limited supply for the market.
Meanwhile, housing prices tend to increase, exceeding the financial capacity of the majority of people who want to buy for use.
Regarding apartment prices, in the fourth quarter of 2023, according to the aggregated data of local reports and survey information of market research organizations, apartment prices continued to increase in the two major cities of Hanoi and Ho Chi Minh City, especially in central areas.
There are almost no projects in the affordable apartment segment (price under 25 million VND/m2) on the market, but mainly mid-range apartment segment (price from 25-50 million VND/m2) that are eligible to mobilize capital and trade.
In Hanoi and Ho Chi Minh City, some projects have high average price increases of 3.5-5%.
At the press conference, the Ministry of Construction also announced the inspection plan for 2024. Specifically, according to the decision of the Minister of Construction, the inspection list includes 3 parts. First of all, it is an administrative inspection of the implementation of policies, laws, assigned tasks and powers, and administrative procedure reform at units under the Ministry of Construction.
Inspect specialized state management of the construction sector in the following areas: Management of construction activities, real estate business activities; implementation of technical infrastructure and social infrastructure systems. Urge and inspect the implementation of inspection conclusions, examination and verification of complaints and urge the implementation of legally effective decisions on complaint settlement.
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