70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Real estate
PM urges actions to aid real estate market
Hai Yen 12:34, 2022/12/15
The prime minister called for joint efforts from the authorities and businesses to help the real estate market prevail over current woes and stay on a healthy development path.

Government agencies and provincial administrations are urged to expedite the resolution of market concerns and real estate developers to restructure their operations and capital inflows, which are seen as measures to support the property market.

 Real estate projects in Hanoi. Photo: The Hanoi Times

Such is the request of Prime Minister Pham Minh Chinh in a directive issued on December 14, in which he stresses the need to take drastic measures to facilitate the development of the real estate market.

Under the directive, the Ministry of Construction is responsible for revising overlapping regulations hindering the implementation of real estate projects and accelerating the contractor selection to carry out social housing projects in major cities and industrial parks.

“The goal is to have at least one million social housing units in the next ten years,” stated the directive.

In response to the lack of access to credit loans, commercial banks must streamline their procedures to provide capital to qualified real estate and social housing projects on time.

The prime minister also urges the Ministry of Finance to monitor the corporate bond market situation and support real estate firms that are struggling financially.

In mid-November, Prime Minister Chinh set up a task force specializing in resolving bottlenecks in the real estate market.

A recent report from the Ministry of Construction showed real estate sector remains a key component of the economy, contributing 11% of the GDP.

However, the market has seen a significant drop in transactions in recent months, and many projects have not been able to proceed due to the lack of capital.

Experts attribute the problem to the government's restriction of bank credit in the market, along with strict regulations on the issuance of corporate bonds.

The Ho Chi Minh City Real Estate Association (HoREA) noted many real estate firms’ downscale operations and cut costs. Meanwhile, those struggling with working capital must resort to borrowing from other sources at high-interest rates.

Such a situation has impacted the real estate market in Hanoi. The city's housing supplies in the third quarter of 2022 dropped by 39% year on year to 3,600 units, the lowest figures in the past several years, according to the municipal Department of Construction.

The department said most new supplies came from existing projects, concentrating in Hoang Mai, Long Bien, and Ha Dong districts, where land reserves are still abundant.

They, however, are in the mid-priced to luxury segment and away from the city center. Meanwhile, the shortage of new projects and rising building materials have contributed to rising housing prices in Hanoi, up 5% from early 2022.

RELATED NEWS
TAG: real estate vietnam property developer hanoi
Other news
14:55, 2024/05/28
Booming West Hanoi property driven by infrastructure investments
Hanoi's real estate market is expected to continue having positive developments in the upcoming quarters.
11:39, 2024/05/08
Hospitality real estate attracts remittances: VARS
Remittance volumes will be a new source of demand driving the property market, according to VARS.
13:31, 2024/04/30
Supply constraints keep housing prices high: expert
Rising value of Hanoi's residential segment calls for measures to reduce property prices.
15:16, 2024/04/15
Real estate prices are on the rise in downtown Hanoi
Demand for retail space in alleyways is rising as small and medium-sized enterprises seek to cut costs, given that most of their revenues come from e-commerce platforms.
19:14, 2024/04/09
Overseas Vietnamese excited about opportunities to buy local property
When the amended Land Law comes into effect in January 2025, more overseas Vietnamese will be able to own local property.
16:27, 2024/03/28
Vietnam real estate market in 2024 shows signs of recovery
In 2024, the housing market shows more positive signs than in 2023, but there will be differences in the timing of the recovery across segments.