Find solutions for the real estate market

VCN - The real estate market continues to face difficulties in mobilizing capital sources and is scarce in supply.
Tax revenue from real estate transfer surges Tax revenue from real estate transfer surges
Arrangement, handling of real estate to be separated from equitization process Arrangement, handling of real estate to be separated from equitization process
Control capital mobilization of real estate enterprises in stock market Control capital mobilization of real estate enterprises in stock market
The real estate market is facing many difficulties, again. Photo: T.D
The real estate market is facing many difficulties, again. Photo: T.D

More than 100 projects "covered"

On November 8, in Ho Chi Minh City, Deputy Prime Minister Le Minh Khai and leaders of the Ministry of Construction had a meeting with many real estate businesses to remove difficulties and obstacles for the market.

The report of the Ministry of Construction on difficulties and obstacles of the real estate market shows that the activities of businesses in the real estate sector have gradually recovered compared to 2021. However, in 9 months of 2022, the operation of real estate businesses still faces many obstacles.

Specifically, with the strict control of the credit market, the issuance of bonds and stocks, real estate businesses are facing difficulties in accessing capital to implement projects. Loan interest rates, foreign exchange rates, petrol and oil prices, and construction material prices increased, leading to higher fees for enterprises, and affecting their production and business activities.

Most ominously, many businesses face difficulties in project implementation due to obstacles in the project's legal and investment procedures, especially the approval of investment policies and land allocation procedures.

Some real estate corporations and enterprises are reducing the scale of investment, production and business (stopping or suspending investment and construction activities of some projects; stopping the implementation of new projects; stopping development. issuing shares to increase capital; stopping IPO).

In Ho Chi Minh City, the leader of the Ho Chi Minh City Real Estate Association (HoREA) said that there are more than 100 real estate projects "covered" due to legal problems, which are in need of competent authorities to remove them.

According to Le Hoang Chau, Chairman of HoREA, real estate projects are currently stuck due to many objective and subjective reasons. Among them, the main reason is due to problems and inadequacies of a number of provisions of legal documents and sub-law documents that are not uniform, not connected, and not close to reality.

In addition, some real estate corporations and businesses are "hungry for capital", have to borrow capital from society with very high-interest rates, are full of risks, or have to sell off assets, projects or sell real estate products, housing with deep discounts, even up to 40% of the contract price, creating opportunities for customers to buy cheaply, but there is a risk because it is a product formed in the future.

In addition, the sale of projects at bargain prices creates opportunities for foreign investors to "take over", losing the advantage of domestic enterprises that are "dominating" the market.

Struggling to overcome difficulties

Facing the above situation, recently, representing real estate enterprises, HoREA has sent an official dispatch to the Prime Minister proposing some solutions to remove difficulties for businesses, home buyers and investors for the safe, healthy and sustainable development of the real estate market such as to consider "finally" the projects that are being stopped due to legal problems.

The State Bank creates favorable conditions for businesses and homebuyers to access credit capital to increase liquidity. The Ministry of Finance and the Government shall consider and create conditions for individual investors who are not "professional securities investors" to invest in individual corporate bonds.

However, according to Dr. Can Van Luc, Chief Economist of BIDV, facing challenges in 2022 and is expected to continue to face difficulties in 2023, in addition to supportive policies from the Government, the Ministries and departments of real estate businesses also need to restructure and control cash flow risks, interest rates, and interest rates; actively learn and approach the recovery program. In particular, green recovery, green growth by green real estate is the trend.

In addition, businesses need to actively transform digitally and catch up with new trends; adaptation, change management, risk management are inevitable.

On the other hand, in the context of high bank interest rates, low credit room, and pressure on bond maturity, investors actively built long-term adaptation plans to stimulate market demand.

Specifically, for the project Aqua City - a smart eco-urban area east of Ho Chi Minh City of Novaland Group, the investor has offered attractive incentives such as gifting an interior package of VND 1.5 billion; commitment to re-lease the product with a profit of 18% in the first 3 years after receiving the house or commit to buy back 6-10%/year, special incentives for fast payment schedule up to more than 20%.

Or as investor Hung Thinh has just announced a "huge" discount policy for the Moonlight Avenue project (Thu Duc city). Accordingly, buyers who pay up to 98% ahead of schedule will receive a 40% discount of the apartment value.

By Thu Diu/ Huu Tuc

Related News

Quang Ninh Customs seeks solutions to promote import and export

Quang Ninh Customs seeks solutions to promote import and export

VCN - Quang Ninh Customs Department has made efforts to synchronously deploy solutions to accompany, support and resolve difficulties for businesses, contributing to improving import and export activities through the area.
Accelerate implementation of solutions to disburse public investment capital

Accelerate implementation of solutions to disburse public investment capital

VCN - Facing the impact of storm No. 3 on economic growth, many experts continue to believe that public investment will play a key role in economic recovery and growth for the entire year of 2024. However, there is only one quarter left until the end of 2024. The target of disbursing at least 95% of investment capital is facing many difficulties.
Industrial real estate - "Magnet" attracting foreign capital

Industrial real estate - "Magnet" attracting foreign capital

VCN - Looking back at the development journey over the past 30 years, it can be affirmed that the model of industrial parks and economic zones has been playing an important role, as a driving force for growth and the process of industrialization and modernization of the country; a channel to attract investment resources, especially foreign direct investment (FDI), contributing to improving the business environment and enhancing competitiveness, ensuring sustainable development.
Slow disbursement of public investment capital due to obstacles from policies

Slow disbursement of public investment capital due to obstacles from policies

VCN - Disbursement of public investment capital still has faced many obstacles, mainly focusing on mechanisms and policies related to specialized ministries.

Latest News

EU partners no longer

EU partners no longer 'lenient', Vietnam must adapt through ESG policies

VCN - Legal and economic experts are calling for Vietnam to revamp its policies to align with stringent sustainable development requirements set by European Union (EU) partners.
Changes in Canada

Changes in Canada's trade defense laws

VCN - Canada - a major trading partner of Vietnam - is making many changes in its trade defense investigation regulations, which has a significant impact on Vietnam's export activities.
Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - Although the import and export turnover of goods slowed down in September 2024, in general, import and export activities, especially exports, still grew positively in the first 9 months of 2024. It is expected that import and export of goods in 2024 will reach a record of 800 billion USD.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.

More News

Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

VCN - According to the Ministry of Agriculture and Rural Development, Vietnam's capacity to export over 50 billion USD worth of agricultural products annually, coupled with established supply chains, provides a significant advantage for Vietnamese agricultural and aquatic products to penetrate the Halal market.
Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Vietnam and UAE trade sees billion-dollar growth

Vietnam and UAE trade sees billion-dollar growth

VCN - According to General Department of Vietnam Customs by the end of September 2024, bilateral trade between Vietnam and the United Arab Emirates (UAE) reached nearly US$5 billion, an increase of more than US$1.4 billion over the same period last year.
Sharing responsibility for ensuring security and safety of the supply chain

Sharing responsibility for ensuring security and safety of the supply chain

VCN – Post - clearance audit is carried out in a planned, focused and key manner, avoiding widespread and ineffective inspections, thereby creating convenience for the business community and improving the effectiveness of state management of customs.
Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - Tensions between Israel and Iran escalate, tuna businesses are worried, they may have to stop export orders to the Israeli market in the last months of the year.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Read More

Your care

Latest Most read
EU partners no longer

EU partners no longer 'lenient', Vietnam must adapt through ESG policies

Legal and economic experts are calling for Vietnam to revamp its policies to align with stringent sustainable development requirements set by European Union (EU) partners.
Changes in Canada

Changes in Canada's trade defense laws

VCN - According to the Vietnam Trade Office in Canada, as of September 2024, Canada has initiated nineteen trade defense investigations on Vietnamese export goods, including twelfth anti-dumping (AD) cases, five anti-subsidy cases and two defense cases.
Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - At the regular Government meeting in September 2024, Minister of Industry and Trade Nguyen Hong Dien assessed: import and export continued to be a bright spot, recording a positive recovery compared to the same period last year.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Mobile Version