The supply of high-end housing is more than the supply of affordable housing, while the majority of people have demand for medium to medium-sized homes.
According to Hochiminh City Real Estate Association (HoREA), the real estate market has shown signs of slowing down, potentially causing instability.
As evidence of the above sign, HoREA pointed out that the transaction has slowed down, showing signs of phase shift to the high-end real estate segment, while the lack of medium- and small-sized residential apartments with 1-2 bedrooms with affordable price. Statistics of 34 projects were confirmed by the Department of Construction to qualify for capital mobilization with more than 14,900 units, up 1.8 times; High-end luxury apartments increased by 16% while the average apartment decreased by 19% over the same period last year.
Besides, there are still unqualified projects that have mobilized capital and the phenomenon of some investors abusing the deposit regulation under Article 328 of the Civil Code while the Law on Real Estate Business is not regulated. To raise capital in advance through such forms as deposit contract, promised buy promised sale, home buyer loan contract … This situation increases the risk for homebuyers.
Mr. Le Hoang Chau, Chairman of HoREA, said in the market also appeared in some cases investors do not comply with legal regulations such as Harmona, Bay Hien, Rubyland, Petrolandmark apartment influencing negatively to real estate market. Unprofessional investors, lack of capacity or use of mobilized capital, credit capital for wrong purposes, in some cases due to loose management or consent of the credit institution did not comply with the regulations of law on investment and construction.
There are also cases where the investor has not satisfied the conditions for bringing the condominium into use for the customer to live in; Failing to strictly comply with regulations on a mortgage, mortgage and sale of houses to customers, causing damage to consumers and affecting social security; Disputes in the apartment complex still occur … All these things have affected the market confidence, bad impact on the real estate market in the early months of 2016.
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However, according to Chau, with changes in government policies, a policy framework for orienting the country’s economic development and macroeconomic stability has been established with great commitments to create conditions for enterprises to develop…
The State Bank of Vietnam (SBV) has been active and flexible in managing and adjusting to a more cautious credit policy. By issuing Circular 06/2016 raising the risk weight in real estate business to 200% and setting a two-year roadmap to gradually reduce credit supply into real estate has sent a strong message to regulate the market. Real estate is positive, creating pressure for investors to seek alternative sources of capital.
City leaders also inspire and aspire for the people and businesses, the direction of government agencies and civil servants to the role of service … All the above jobs of the state apparatus plus The outstanding efforts of the business community have contributed to stabilizing the confidence of the market.
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