Conference promotes healthy and sustainable development of property market

Prime Minister Pham Minh Chinh chaired a conference on February 17 in Hanoi to promote the safe, healthy, and sustainable development of the real estate market, with the event being connected online with 63 localities across the country.

Those in attendance at the function included a number of ministers and deputy ministers and.

As part of his opening speech, Prime Minister Pham Minh Chinh said that in 2022 and the opening months of the year, the socio-economic situation has recorded plenty of bright spots, with macroeconomic stability, controlled inflation, and ensured major balances, especially amid a difficult global situation that affects the domestic market.

Attention was therefore given to cultural and social security issues, while independence, sovereignty, and territorial integrity were maintained, PM Chinh said, adding that political stability, social order, and safety were also guaranteed as a means of raising the country’s reputation within the international arena.

In this context, there are also some difficulties that must be resolved to make the markets healthy, including the real estate market.

This conference aims to assess the current situation relating to the real estate market, particularly difficulties and problems, while proposing solutions for the real estate sector and related fields to promote the real estate market as a way of continuing to develop in a healthy and sustainable manner.

Prime Minister Pham Minh Chinh speaks at the event

The Government chief asked that delegates objectively discuss and honestly assess the situation and carefully analyse the causes, especially subjective ones. They must thereby put forth objectives, tasks, and solutions to develop the real estate market in accordance with guidelines and policies and laws of the Party and State, as well as the socialist-oriented market economy.

According to the PM, after the conference the Government is set to issue a resolution on the real estate market which serves as a basis to promote the safe, healthy, and sustainable development of the property market with the target of harmonising the interests of the State, people, and businesses.

Reporting at the conference, Deputy Minister of Construction Nguyen Van Sinh said that in 2022 housing supply was scarce with the structure of housing products inclined towards the mid-high-end housing segment. In addition, housing for low income earner was lacking, with the structure of affordable real estate products being gradually decreased from 20% in 2019 to less than 5% in 2022. Indeed, the number of deployed projects remained very limited.

PM Pham Minh Chinh and delegates attend the conference

For commercial housing development projects, there are currently 126 projects with 55,732 licensed apartments across the country.

Moreover, real estate transactions in 2022 increased compared to 2021 but still witnessed a decline compared to before the breakout of the COVID-19 pandemic.

Last year witnessed the selling price adjusted to actual value. Products that are suitable for real housing needs boast strong long-term liquidity, whilst high rental demand is still recording good absorption rates.

However, the number of transactions is not high due to restrictions on credit loans not only affecting investors but also making it difficult for people with real needs to access loans.

Meanwhile, the supply structure is largely made up of high-end products. Although many preferential and discount policies been applied, the selling price is still high.

Regarding the situation of real estate credit, according to a report by the State Bank of Vietnam, the outstanding credit balance for real estate businesses as of December 31, 2022, stood at nearly VND800,000 billion.

VOV