With new policies in the real estate business law promises to have a strong impact on the housing market in 2018.
The new policy noticeable in the law of real estate business
– The tightening of credit capital is poured into real estate
2018 can be considered a worrisome year for real estate businesses, as the flow of credit capital into the real estate market is tightening. According to the Resolution No. 01 / NQ-CP, the Government will direct strict control of credit for potentially risky areas, including real estate. On March 23, the State Bank of Vietnam (SBV) sent an official letter No. 563 / NHNN-TTGSNH requesting banks to quickly shift their credit structure to focus on priority capital for production, business, limited credit focus on the real estate sector.
According to the requirements of Circular No. 19/2017 / TT-NHNN, in 2018, the bank only maintains the maximum ratio of short-term funds used for medium and long term loans is 45%, instead of 60% as previous years. Faced with the tightening of credit in the real estate market, real estate firms are forced to step up their investment capital.
– Promote the development of social housing, low price
According to the Resolution No. 01 / NQ-CP, the Government will promote social housing, low price houses will continue to be effective in housing development programs, especially housing support programs for poor households. The Ministry of Construction shall have the responsibility to study, formulate and propose appropriate mechanisms and policies to mobilize resources for the development of social houses in urban centers and houses for laborers. industrial zones, encouraging the development of housing for rent, commercial low-cost housing in big cities …
This is considered a good signal, creating more incentive for the development of affordable housing market. Low income people in big cities will have more opportunities to own a home.
New policies affect the real estate industry
According to HCM City Real Estate Association (HoREA), in 2018, the housing market may continue to recover and grow steadily. The market segments, real estate products will have more reasonable restructuring. The segment of apartments priced at over VND1 billion will still play the leading role and forecast price of housing is also not large fluctuations. Green property projects will be the trend this year.
According to HoREA, 2018 will also be a year when the real estate market faces many challenges, difficulties in supply-demand relationships, access to land for investment and administrative procedures. But first of all, it is difficult to access credit capital, because the new real estate business law requires the State Bank to continue restricting the flow of credit into real estate. This also motivates the real estate business to find suitable solutions to overcome, rise up and develop sustainably and adapt in the new business environment.
In addition, a series of legally-issued legal, regulatory and regulatory corridors will play an important role in helping to clarify and remove obstacles to real estate market operations. It is expected that the National Assembly will review and promulgate the Law on Special Administrative-Economic Units and will consider issuing many bills directly related to real estate such as: Draft Amendments to Land Law, Business Law real estate, Housing Law, Construction Law, Urban Planning Law, …
Remarkably, Resolution 01 on January 01, 2018 of the Government to closely monitor market developments to have solutions to promote real estate development stable, sustainable, does not happen status speculation and price increases unreasonable. Concurrently, reform of administrative procedures relating to land, taxation …
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