Increase small and medium housing market is under VND1 billion

That is one of the nine recommendations of Ho Chi Minh City Real Estate Association (HoREA) for real estate (real estate) in 2018.

HoREA Chairman Le Hoang Chau said the important legal regulations are expected to issue and the policies of the Government, the city will positively impact the real estate market in 2018. Of which, three Group of bills directly related to the real estate market is: “Draft Law amending and supplementing some articles of the Land Law”; “Draft Law amending and supplementing some articles of the Law on Housing, Law on Real Estate Business, Law on Construction, Law on Urban Planning”; “Draft Law Amending and Supplementing a Number of Articles of the Investment Law, Enterprise Law”.

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Environmentally friendly housing is noted

According to HoREA analysis, in 2017, the real estate market has continued to recover, growth is relatively stable; The market segments and real estate products have more reasonable restructuring. In particular, affordable housing plays a key role and is highly liquid; many real estate projects have integrated many utilities, services, creating better living space following the trend of “green real estate”; Many project owners have attached great importance to building brand prestige, responsible to customers and society.

However, there are still potential problems in some market segments such as apartment segment condotel; luxury apartment with large area; Some brokerage firms have shown illegal business and many sellers are shoved by land users to sell their rampant background, creating virtual price spikes in the “unofficial” market. in some coastal districts and suburbs; The situation is complicated in many apartment projects.

In 2018, HoREA forecasts that the real estate market may continue to recover, grow, maintain stable development; segment of the housing market is affordable 1-2-bedroom apartments with the selling price of less than 01 billion per unit play a dominant role and forecast prices of housing will not be large changes; Green real estate projects, which have an environmentally friendly living space in the direction of adapting to global climate change, will be the chosen trend.

Le Thanh Chau, Chairman of HoREA noted that the real estate market in 2018 will face many challenges and difficulties in supply-demand relations. access to investment land; administrative procedures; lack of funds; First of all, it is difficult to access bank loans, as the State Bank is continuing to implement the roadmap to gradually limit credit sources into the real estate market. However, this pressure is also a driving force for BBS businesses to find appropriate solutions to overcome, rise up to sustainable development, adapt to the new business environment.

Nine real estate business recommendations

HoHEA has nine recommendations to real estate businesses in 2018 for businesses to apply to gradually reduce dependence on credit is increasingly limited. This is a challenge but also an opportunity to restructure the business, restructure the business investment capital to develop the business and the real estate market more transparent, healthy and sustainable.

1. Ensuring business efficiency of profit targets; revenue; preparation of land fund, development investment projects; the quality of the work, the progress of the project; transparency in corporate governance … to qualify for bank credit loans under the new policy now and prepare for credit restrictions on real estate is expected to apply on 1-1 -2019.
2. Always put the interests of customers above all, keep the prestige, ensure the quality of construction, progress of construction, handover of houses, forming green living space, environmentally friendly, attaching importance to work. after-sales service, in order to mobilize the advance capital of customers in accordance with the law of real estate business (up to 70% of the contract value if not handed over) up to 95% of the value of the contract if the house has been handed over);
3. Strive to become a professional and competent developer in the market segment and product of your choice; The Association recommends that the segment of small and medium sized housing market (1-2 bedrooms) with affordable price (around 1 billion VND per unit) is the key segment of the market. marketable, highly liquid and sustainable; Participating in programs to rebuild damaged old buildings, renovate houses on and along the canals of the city, social housing of the city; the program of developing house workers’ organizations of the Vietnam General Confederation of Labor;
4. Increasing equity to enhance the internal strength of the business;
5. Enterprises shall consider the transformation into joint-stock companies in order to qualify for social capital; and become a public company, listed on the stock exchange;
6. Enterprises, if they are eligible, shall issue enterprise bonds, project bonds, issue shares and list overseas securities;
7. Enterprises should cooperate, joint venture, association, merger to form powerful real estate corporations;
8. Enterprises should select partners who are reputable companies and financial investment funds for cooperation in investment, business and project development in order to increase resources and learn experience and improve the management capacity of enterprises;
9. It is recommended that businesses study to make it possible to propose the Government to allow real estate securitization.

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