The market is not strong enough to "overcome the slope" but has basically escaped the risk of "losing the brakes"
At the online conference to implement the Prime Minister's telegram to remove difficulties for the real estate market on November 13, Mr. Hoang Hai, Director of the Department of Housing and Real Estate Market Management, Ministry of Construction, said that in recent times, the efforts of the Government and ministries and branches have contributed positively to "maintaining" the real estate market. Although the market is not strong enough to "overcome the slope", it has basically escaped the risk of "losing the brakes" and is regaining momentum.
The mechanisms and policies to promote the market have begun to show signs of being absorbed. The volume of transactions in the entire market has gradually increased over time.
According to Mr. Hoang Hai, more bright spots are beginning to appear in the overall picture of the market. These are localities with developed economies, attention and focus on promoting investment in infrastructure and transportation, with many sources of supply suitable to demand such as Hanoi, Hai Phong, Lao Cai, Da Nang, Ho Chi Minh City, etc.
The market is not strong enough to "overcome the slope" but has basically escaped the risk of "losing its brakes". (Photo: DM)
“Localities are actively participating and joining hands to solve problems with real estate businesses such as Hanoi, Hai Duong, Dong Nai… This is also a positive and noteworthy signal,” said Mr. Hai.
Mr. Hai said that aggregate demand has improved as a result of gradually permeating policy mechanisms, less economic difficulties, interest rate reductions, etc. However, demand is still only 30% compared to the period before the market encountered difficulties.
Of these, about 50% are in need of housing but have financial difficulties and cannot turn into real demand. The demand for housing, although not much, has helped the market generate transactions.
20% is the demand for real estate investment to buy and resell, increased by about 10% compared to the previous quarter due to being stimulated by signs of economic recovery, reduced interest rates pushing part of the cash flow back to the market.
30% of investment demand is for rental exploitation. This is the priority choice of many customers and investors. Especially apartment products and individual houses can be rented out to create a stable cash flow in large cities or in localities with high potential for tourism development such as Quang Ninh, Da Nang, Lao Cai, Phu Quoc...
In the social housing segment, localities are focusing on attracting investment and accelerating progress. More social housing projects have begun receiving and evaluating applications. The future supply of social housing in many localities is forecast to “improve significantly” in 2024.
“In the 2021-2025 period, nationwide, there have been 465 social housing projects for low-income people and industrial park workers with a scale of 412,845 units completed and under construction,” Mr. Hai revealed.
Now is a "sensitive" time.
The Director of the Department of Housing and Real Estate Market Management emphasized that the present is an extremely important and decisive period for the "transformation" of the real estate market.
“Along with legal and capital bottlenecks, “customer and investor confidence” is the “final hurdle” that needs to be cleared so that the real estate market can truly return to a “new normal state,” said Mr. Hai.
Now is a very important and decisive time for the "transformation" of the real estate market. (Photo: DP)
In order for the real estate market to develop healthily and sustainably, Mr. Hai said that ministries, branches, localities and enterprises must perform well the tasks stated in the resolutions and telegrams of the Government, especially Resolution 33, including some tasks to be done immediately:
Firstly, urgently complete and submit to the National Assembly for consideration and approval the Land Law (amended), Housing Law (amended), Real Estate Business Law (amended), Bidding Law (amended), Auction Law (amended), Price Law (amended), Law on Credit Institutions (amended)...
Second, urgently and effectively implement the Project "Investing in the construction of at least 1 million social housing apartments for low-income earners and industrial park workers in the 2021-2030 period" to immediately remove some specific difficulties and obstacles in developing social housing, increasing supply in line with the needs and capabilities of low-income earners with high demand for accessible housing.
Third, identify investment in developing social housing for low-income workers as an investment item in the medium- and long-term capital sources of localities.
Fourth, effectively implement the VND120,000 billion credit program. At the same time, enhance the effectiveness of the Prime Minister's Special Task Force on removing difficulties for the market.
In addition, localities promote administrative procedure reform, focusing on removing difficulties in legal procedures of real estate projects in the area; Promote planning approval, investment policy approval, selection of investors to implement real estate projects, financial obligations on land to increase supply to the market.
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