Real Estate Inventory Is Quite Large

By 20/9/2017, the total value of real estate inventory is about $ 1.1 billion – Minister of Construction Pham Hong Ha said in the report implementation of the resolution of the National Assembly on supervision and questioning.

The real estate market in 2016 and 9 months in 2017 is expected to maintain stable growth

Strengthening control and management to ensure a stable, smooth and efficient real estate market, continuing to restructure the real estate market, diversify real estate products, promoting social housing is one of the requirements of Congress with the construction industry.

Breakthrough on social housing

The results of the above-mentioned request were reported by the Minister as the system of legal documents on housing and the real estate market has been improved, creating a relatively complete legal corridor for control, regulate the activities of the market. Include creation, transaction, ownership, use management of real estate, housing, as well as management of market participants. At the same time, appropriate mechanisms and policies should be put in place to promote the development of social housing in order to help low-income social policy beneficiaries improve their housing conditions.

The real estate market in 2016 and 9 months in 2017 is expected to maintain stable growth

The new regulations of the Housing Law, the Law on Real Estate Business and the guiding documents have facilitated more favorable and favorable conditions to attract domestic and foreign resources to invest in the development of the real estate and housing market and at the same time to satisfy the requirements of strengthening the State management role to control the stable and healthy development of the market.

As the regulations on expanding the object, loosen the conditions for overseas Vietnamese and foreign organizations and individuals to trade real estate, buy and own houses in Vietnam. Or the appraisal and approval of investment policy for housing projects must be based on the construction planning, the housing development plan of the locality, the real estate transaction formed in the future must be guaranteed by the bank.

The Minister specifically emphasized that the improvement of policies on social housing development and management is one of the breakthroughs, contributing significantly to restructure the real estate market, creating favorable conditions for the policy beneficiaries, the poor and low-income earners to have conditions to improve their houses, thus contributing to ensuring social security and promoting socio-economic development.

There are still many barriers to business in the development of green real estate.

The law on housing stipulates that the capital for the implementation of the social-house policy shall include the capital directly contributed by the State to beneficiaries of social-housing policy; capital provided by the State for preferential loans through the Social Policy Bank or credit institutions designated by the State. According to the Minister, these new regulations have come to life and bring into play the positive effects that have been supported and appreciated by state agencies, social organizations, businesses and people.

On the basis of summing up, evaluating and proposing solutions for funding for housing development programs of the Ministry, the National Assembly Standing Committee has agreed to add capital in the medium term investment plan for 2016. -2020 for the Social Policy Bank to implement the social housing loan policy and supplement the housing support program for people with meritorious services to the revolution – the minister said in more detail.

Stable growth

The real estate market in 2016 and 9 months in 2017, reportedly continue to maintain steady growth. Stability is expressed through the following factors: stable prices, increased liquidity, better structure of housing commodities, real demand and real capacity of the market, inventory continued to decline, credit in the real estate sector continued to grow, higher than the overall credit growth of the system.

Total inventory value as of 20/9/2017 is about 26,294 billion

Housing prices in this period are generally unchanged, in Hanoi and HCMC house prices in the urban area in some high-end apartment projects, favorable location, the construction progress is good, investors have prestige, have policies of selling and promoting attractive, the price has increased slightly, about 3-5% compared to 2015 (especially those projects have increased to 10 %).

The number of successful transactions in 2016 and 9 months of 2017 is stable, mainly concentrated in the middle- and high-end apartment segment, while low- and medium-sized apartment transactions were due to limited supply.

In the first nine months of 2017, there were about 10,550 successful transactions in real estate trading floors (down by 7.5% against same period last year); In Ho Chi Minh City, there were 11,320 successful transactions (up 3.4%).

Up to now, there have been 63 projects registered for conversion from commercial houses to social houses with the total construction area of 42,370 apartments. There are 96 projects registered to adjust the apartment structure (reduced area) to suit the market demand with the original number of 44,700 apartments proposed to be adjusted to 60,000 apartments.

As of 20/9/2017, the total value of real estate inventory is about $ 1.1 billion compared with December 2016 decreased $ 186,043,478 (down 15.24%); compared with 20/8/2017 decreased $ 19,565,217.

Real estate inventory is decreasing but slower

As of 31/12/2016, outstanding loans in the field of real estate business is $ 1.8 billion, up 11.03% compared with 31/12/2015 and up 1.92% compared to 30/11 / 2016 as of December 31.

As of 31/12/2016, outstanding loans for real estate investment and business were $ 801,869,565 out of total outstanding loans in the field of real estate business of $ 1.8 billion (accounted for 4,23% of total outstanding loans in this field).

On the limitations, the Minister acknowledged, the inventory of real estate has been reduced, but still quite large, the pace of inventory reduction in recent months has slowed down because most of the projects are located far from the center, the infrastructure is not available so it is difficult to sell. High-end housing supply is now abundant, while the supply of social housing, low-cost housing is lacking, and the implementation of housing programs is still slow.

In addition, information on the real estate market is currently incomplete and inconsistent, not sure of publicity and transparency, making it difficult for state management as well as people when entering the market. There are signs of speculation, distorting information through distribution.

You are reading the article “Real Estate Inventory Is Quite Large” in the section “Real Estate Report” on the website: https://realestatevietnam.com.vn/.
All information sharing, feedback please email to contact.vietnamrealestate@gmail.com, Hotline (+84) 898 898 688 (24/7).
Thank you for visiting our website!