The real estate market is growing unstable

According to Vu Tien Loc, Chairman of Vietnam Chamber of Commerce and Industry (VCCI), the real estate market was growing unstable due to the impact of the Covid-19 pandemic and projects being stopped and postponed. The overlap in legal procedures caused burden for the increase in the supply of the real estate market while the demand was still high. Meanwhile, the office segment has a low consumption rate.

Therefore, it was necessary to discuss solutions to develop the real estate market because this was one of the important markets contributing to the economic recovery process.

First of all, it was necessary to promote implementation of current support packages, which could expand scale and resources of support packages. At the same time, opening new support packages, especially medium and long-term credit packages for key and core projects.

Besides that, monetary policy needed to be flexible but must ensure macroeconomic stability. The fiscal policy must create more favourable conditions to solve the issues of liquidity and investment of enterprises and suggested the National Assembly and the Government considers and removes 20 overlaps in land and construction policies.

Duong Duc Hien, Sales Manager of MIK Group, said the demand for housing was still high despite the impact of Covid-19 pandemic. This was also a test for businesses, especially those with limited land or enterprises which lack financial strength. This time required investors to focus on product development, services, market research and customer needs.

Nguyen Manh Ha, Chairman of the Vietnam Association of Realtors, said that the real estate market involved more than 10 different laws which came from the Land Law, the Investment Law, the Housing Law and laws relating to taxes and fees; real estate enterprises were particularly sensitive to changes of policy.

Therefore, businesses expected new policies and problems to be solved. However, the issuance of new documents for removing obstacles sometimes encounters new regulations, causing more problems.

For example, when preparing a project, investors calculated the costs to mobilise. However, according to newly issued documents, the increase in cost would cause the failure of investors and many projects failed to implement. Therefore, there was a 10-year project that could not be implemented due to problems in policy mechanisms.

In fact, there was a document that took effect after six months but there were also documents that take effect immediately so businesses struggled. “Thus the documents which are facilitated to people, businesses should take effect immediately. And the documents that cause a great impact on the enterprise should take effect after 1-2 years since the date of issuance,” Ha suggested.

Nguyen Manh Ha also proposed to continue to solve difficulties for businesses amid the Covid-19 pandemic such as reducing interest rates, delayed payment for about 12 months or postponing deposits to allow investment projects. Especially, giving guidelines for businesses in the process of selecting investors for social housing projects, projects that use land subject to bidding and auction.