The real estate market is revealing many limitations and inadequacies

DNHN - In addition to making positive contributions to the country's economic development and ensuring social security, the Minister of Construction also acknowledged the real estate market is currently revealing limitations and inadequacies, having unstable, unhealthy signs.

Report on a thorough analysis of the real estate market for 2021 and the first half of 2022; Minister of Construction Nguyen Thanh Nghi emphasised, in forecasting the situation and proposing solutions to develop a safe, healthy, and sustainable real estate market, that the real estate market is one of the important markets of the economy, plays an important role in attracting resources, creating fixed assets for the economy, promoting the development of many other economic sectors and fields, meeting the demand for residential accommodation, and developing urban, industrial, and agricultural areas.

In the first 6 months of 2022, the whole country completed only 3 social housing projects for low-income people in urban areas and industrial park workers, with a construction scale of about 6,000 units, with a total area of ​​about 300,000 m2 of construction floor. Particularly for the social housing project for industrial park workers: completed the construction of 01 projects, with a construction scale of about 400 apartments, with a total area of ​​21,500 m2.

Implementing the Government's Resolution No. 11/NQ-CP on the Socio-economic Development and Recovery Program, localities have started 11 projects with a total of about 25,675 apartments, and a total construction area of ​​about 1,282 .850 m2. However, the results of the development of social housing projects, housing for workers in 2021 and the first 6 months of 2022 are still very limited compared to demand.

In the first 6 months of 2022, the total transaction volume of apartments and individual houses was about 50,000 transactions, and land plots about 200,000 transactions increased compared to the same period in 2021.

Besides making positive contributions to the country's economic development and ensuring social security, the Minister also stated that the real estate market is currently showing limitations and inadequacies, there are signs that stable, unhealthy emerges as:

The legal system related to real estate investment, construction and business still have have some shortcomings that need to be studied and revised, such as the form of selecting investors for projects using land; determining land prices when recovering, allocating land, leasing land, and auctioning use rights; on the time limit and land use regime for new types of real estate, mixed real estate, multi-function...

The formulation and approval of local housing development programs and plans as a basis for implementing housing projects by the Law on Housing is still slow and does not meet the requirements as prescribed.

The supply of commercial housing decreased in most localities, and many projects that are about to be implemented also face difficulties in legal procedures, especially in choosing investors, calculating land use fees, and allocating land. According to information from the Real Estate Association of Ho,Chi Minh City has about 126 projects in the city.

The structure of real estate products are still unreasonable: the middle and high-end housing segments, and tourism real estate show signs of excess. Meanwhile, there is a severe lack of social housing, housing for workers and affordable commercial housing for low- and middle-income people (for new social housing, reaches 7.3 million m2/12.5 million m2 as required and targeted by the National Housing Development Strategy).

Real estate prices, especially houses and residential land, are constantly increasing and are higher than people's incomes. This makes it difficult for low-income workers in urban areas and industrial zones to access and create accommodation. In Hanoi and Ho Chi Minh City, there are almost no apartments for rent under 25 million/m2.

The established real estate trading floors, operating spontaneously and unstable; do not yet ensure full control of information and legality in real estate transactions.

The business of real estate brokerage services has not been well controlled; a part of real estate brokerage is still weak in expertise, has limited legal knowledge and is not professional. There is also a large number of individuals practising freelance real estate "brokers" without a license.

Real estate transactions are not transparent, the phenomenon of "two prices", declaring lower than the actual transaction price to avoid tax in real estate business transactions is still quite common.

The information system on the housing and real estate market is incomplete and incomplete; the disclosure and transparency of information related to the real estate market have not been regular, continuous and complete, leading to abuse, spreading of rumours, and market disturbances.

The management of planning, construction, land use management and real estate market in some localities still exists and is inadequate. Some localities have the phenomenon of dividing plots, a subdivision of plots for sale of the ground floor in contravention of regulations, incompatible with planning, lacking in infrastructure, but have not been checked and dealt with firmly; the work of information, publicity and transparency on planning and infrastructure projects, urban upgrading, and administrative units is still incomplete and timely.

The control of investment capital flows into the real estate sector is not tight, and there are potential risks, especially in the issuance of bonds and shares of real estate businesses.

Tax policies for the use of real estate and real estate transactions and business activities have not been able to distinguish between users and investors and business entities. The phenomenon of speculation and hoarding of real estate has not been limited. The auction of land use rights still has some shortcomings and limitations like some recent cases.

PV