Real estate prices have not cooled down
On the morning of October 24, at the meeting of the Central Steering Committee on housing policy and real estate market, Deputy Prime Minister Tran Hong Ha said that one of the reasons affecting the supply and demand of the real estate market is the problems with projects and land in the conclusions of inspections, examinations, and judgments.
Therefore, localities must urgently review everything, classify and clearly indicate the handling measures under the responsibility and authority of the Central and local governments.
The Deputy Prime Minister assigned the Ministry of Construction to review the documents and administrative procedures of social housing investment projects, coordinate with ministries, branches and localities to guide enterprises to carry out procedures simultaneously in a single set of documents to reduce time and costs. The Ministry of Construction also coordinated with the State Bank to compile statistics and report on the credit situation in the real estate sector, assess the impact on the economy, and propose new, strong and key policies and measures to stimulate the real estate market.
In 2025, the Deputy Prime Minister requested the Ministry of Construction to thoroughly coordinate with localities in implementing the State's policies and laws on housing and the real estate market in a unified and transparent manner, "strongly decentralizing to localities but policies, regulations, processes and procedures must be clear". The Ministry of Construction proposed that the Steering Committee establish interdisciplinary working groups to inspect the implementation of laws related to housing policies, the real estate market, social housing, and targeted housing support in a number of key localities such as Hanoi, Ho Chi Minh City, Bac Ninh, etc.
The Deputy Prime Minister also requested the Ministry of Construction to coordinate with the Ministry of Labor, Invalids and Social Affairs, the Ministry of Planning and Investment, and the Ministry of Finance to complete the housing project and program for people with meritorious services who need to be repaired or newly built, and to arrange and allocate funds for implementation in 2025.
“People with meritorious services must be given attention and focus when regulating and implementing targeted housing support programs,” the Deputy Prime Minister emphasized.
Regarding the target housing support policy, localities have supported 19,468 poor and near-poor households in poor districts, reaching about 62.6% of the 2024 plan; stably arranged for about 21,000 households in natural disaster areas, especially difficult areas, border areas, islands, spontaneous migration areas, special-use forests; supported more than 18,204 houses for poor households in ethnic minority and mountainous areas.
The Vietnam Fatherland Front Committees at all levels have helped build and repair 340,000 Great Solidarity houses for the poor and people in difficult circumstances.
According to the report of the Ministry of Construction, in the first months of 2024, although the supply of the real estate market has had positive changes, it is still quite limited. The structure of housing products is mostly concentrated in the mid- to high-end housing segment, housing for low-income people is lacking, and the structure of affordable real estate products is gradually decreasing.
In the third quarter of 2024, real estate prices in some localities still tend to increase, especially in Hanoi, Ho Chi Minh City and major cities...
Some localities and regions have had land use rights auctions with winning bids many times higher than the starting price, and then the deposit can be "abandoned" with the aim of establishing a virtual price level in the area to make a profit...
The increase in real estate prices was partly due to recent increases in land-related costs as well as the impact of the new land pricing method and table.
Implementing 622 social housing projects
Speaking at the meeting, Deputy Minister of Natural Resources and Environment Le Minh Ngan proposed a number of solutions to address the phenomenon of “creating virtual prices”, inflating prices, and auctioning land at many times higher than the starting price for profiteering: “To cool down the real estate market, there needs to be a comprehensive solution to increase both supply and demand for construction administrative procedures, preferential credit, raw material prices, etc., not just policies on land prices.”
Meanwhile, Deputy Governor of the State Bank Dao Minh Tu said that banks and real estate businesses must meet according to the principle of "harmonized benefits and shared risks" to unblock the real estate market.
Regarding social housing, to date, localities have planned 9,757 hectares of land for social housing, with 622 social housing projects being implemented with a scale of 565,177 units (79 projects with a scale of 40,679 units have been completed; 131 projects with a scale of 111,687 units have started construction; 412 projects with a scale of 411,076 units have been approved for investment policy).
However, only 83 projects in 63 provinces/cities are eligible for preferential loans from the VND120,000 billion credit package. Of these, 15 projects are committed to providing VND4,200 billion in credit, 57 projects have no need for loans, 6 projects are under appraisal, and 5 projects do not meet the loan conditions.
The Ministry of Construction stated that the mechanisms, policies and preferential credit sources for investors in social housing projects are not attractive enough. The source of investment capital for social housing construction from the budget is still limited. The procedures for purchasing, leasing and renting social housing are still complicated, especially the confirmation of documents proving housing conditions, income and residence.
Source: https://vov.vn/kinh-te/nguyen-nhan-anh-huong-den-thi-truong-bat-dong-san-la-do-vuong-mac-tu-cac-du-an-post1130636.vov
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