The market has not developed transparently, the situation of supply-demand shifts, weak enterprises, land use fees are burdens … are the limitations of the property market in Ho Chi Minh City.
Over the past 10 years, the real estate market in Ho Chi Minh City has developed rapidly in all segments. The market is running in cycles, with periods of growth, periods of slowdown and periods of recession.
From the end of 2013 until now, the real estate has been in the cycle of recovery and growth again, but the trend has stabilized in 2016 and potential risks. At present, the property market in Ho Chi Minh City still has 10 limitations.
Secondly, there is a situation of supply and demand phase shift, mainly deviated from the high-end real estate segment, resort tourism, lack of social housing and affordable housing. Credit capital of banks and social capital tend to deviate to some large enterprises and high-end real estate, resort and tourism.
About 1,200 real estate projects in Ho Chi Minh City had about 500 projects suspended. The cause is due to unfinished land clearance. This is the sinking part of the inventory iceberg, which consumes a large amount of capital and has many potential consequences for the market.
Many real estate businesses are not professional, weak in financial capacity and management capacity. In particular, there are businesses that do not fully show the social responsibility and responsibility to consumers should have committed violations of law, harm the legitimate interests of customers causing publicity in the public society.
Land use fees are burdensome, unknown and create mechanisms for asking. To solve this problem, the HCM City People’s Committee has allowed enterprises to temporarily pay land use fees immediately after DONRE determines land prices. Investors are allowed to continue applying for construction permits, which have helped enterprises reduce the waiting time for land valuation procedures like the previous one.
It is difficult to clear the ground, leading to the fact that many projects are unfinished, cannot be implemented, buried capital of enterprises for a long time, no way out.
Difficult to transfer real estate projects because the law requires investors to clear the ground and must have a certificate of land use rights should not create conditions for new investors to replace the project to restart. has been discontinued today.
Credit policy is not suitable, not create the medium, long-term capital for the real estate market. Interest rates are still high and are likely to increase in 2017.
Many administrative procedures, prolonged, hidden negative, harassment in the process of approval of the implementation of investment projects using the land.
In order to solve the above 10 issues, it is necessary to amend and supplement the mechanism and policies and improve the legal system. First of all, it is proposed that the National Assembly adopt the draft of the Law on Amending and Supplementing a Number of Articles of Investment and Business Law to effectively regulate the economy and the real estate market in order to create a legal corridor. Management and business environment more open.
HCMC needs to reform vigorously administrative procedures towards a one-stop shop, simple, transparent, open, fast.
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