The National Assembly's monitoring delegation has just sent delegates the results of monitoring the implementation of policies and laws on real estate market management and social housing development from 2015 to 2023. Limited supply, soaring housing prices According to the report, during this period, the real estate market has gradually met people's housing needs. By the end of the monitoring period, there were about 3,363 commercial housing and urban area development projects that had been and were being implemented with a land use scale of about 11,191 hectares. However, in 2022 and 2023, the real estate market declined, business operations faced many difficulties due to the shortcomings and limitations of the 2015-2021 period exposed under the pressure of the Covid-19 pandemic, leading to limited supply compared to before.

From 2022, apartment prices in Hanoi and Ho Chi Minh City have skyrocketed compared to the income of the majority of people. Photo: NK

From 2022-2023, real estate prices have skyrocketed compared to the income growth of the majority of people. In Hanoi and Ho Chi Minh City, there is no longer a segment of apartments with prices suitable for the income of the majority of people. The report of the Hanoi People's Committee shows that the mid-range and high-end apartment segment accounts for the majority. In 2022, apartment prices in Hanoi increased very high, while in Ho Chi Minh City, the number of real estate transactions decreased sharply, prices increased uncontrollably, and there was an imbalance between price and value. In particular, during this period, a large number of housing projects encountered problems, were behind schedule, were slow to implement, and were stalled. Meanwhile, the resources that businesses have invested in projects are very large, causing waste of land, capital, and increased selling prices. The report also clearly stated that a large number of housing projects encountered problems and were behind schedule. Specifically, in Hanoi, there are 404 projects facing difficulties, 158 have been resolved, and 246 projects are still being resolved. In Ho Chi Minh City, there are 220 projects facing difficulties. In the past 3 years, the development of real estate projects in Hanoi has been very slow, with no new projects approved for investment. New housing products offered for sale are mainly projects approved in the previous phase. Social housing prices are too high compared to beneficiaries' incomes. Regarding social housing, in the 2015-2023 period, about 800 projects have been implemented with a scale of more than 567,000 units. Of which, 373 projects have been completed with a scale of more than 193,000 units; 129 projects have started construction with a scale of more than 114,000 units; 298 projects have approved investment policies with a scale of more than 258,000 units. “In general, policies and laws on social housing in the 2015-2023 period still lack stability. Some important and necessary regulations for developing social housing have not received attention, specific guidance, and clarification, causing difficulties for localities,” the National Assembly report stated.

Dai Kim Building social housing area in Hoang Mai district, Hanoi. Photo: Hong Khanh

During the above period, many localities have not achieved the rate of completion of social housing development according to the program and plan; the rate of land fund for social housing development in urban areas is low, mainly depending on the 20% fund in commercial housing projects. The work of reviewing policy beneficiaries and appraising social housing prices often takes longer than the prescribed time limit, greatly affecting the investment cycle, capital recovery, bank interest payments of investors and people's access to social housing. "The average price of social housing is still too high compared to the income of beneficiaries; the source of support capital from the budget for preferential credit programs for social housing is still low, the lending process and procedures are complicated and overlapping; the maximum loan level for social policy beneficiaries is low and not suitable," the National Assembly's report stated.
Need to diversify products for the real estate market
The monitoring delegation recommended that the Government and ministries have a mechanism to thoroughly handle real estate projects facing difficulties and legal problems, freeing up resources for the market and creating momentum for socio-economic development. The Government and ministries need to prevent the market from "overheating" or "freezing", which negatively affects the overall development of the economy and causes social consequences. In addition, it is necessary to diversify products for the real estate market, harmonize supply and demand; and increase supply in line with people's income. The Government and ministries need to have fundamental and sustainable measures to bring real estate prices back to their intrinsic value, prevent manipulation and use of land auctions to create price "fever". Advise the National Assembly to allocate public investment appropriately, focusing on developing social housing for rent in urban areas using public investment capital. Actively deploy loans to support social housing, remove difficulties and obstacles to effectively implement the 120 trillion VND support package.

Vietnamnet.vn

Source: https://vietnamnet.vn/ha-noi-tphcm-khong-con-chung-cu-phu-hop-voi-thu-nhap-cua-dan-2336109.html