Property

According to the Vietnam Real Estate Association, although the real estate market is improving around the country it will face many problems in the long-term, such as inflation pushing up prices and the appearance of legal issues. Mr. Nguyen Quang Tuyen from the University of Law said there are 82 laws and decrees relating to real estate, such as the Law on Real Estate Business, the Law on Housing, and the Law on Investment, but they are inconsistent and out of synch with a changing market, making it difficult to implement the National Housing Development Strategy.

Housing prices in Hanoi and Ho Chi Minh City increased sharply in 2021, from 10-20 per cent, causing difficulties for people with demand to buy housing. According to analysts, the low supply of apartments, upgraded infrastructure, and recent upward trends in material prices are the main reasons behind rising prices.

Data on real estate price increases and decreases over the past ten years shows that prices are always the opposite of inflation. According to analysts, increases to real estate prices mainly depend on monetary policy, bank credit and interest rates, people’s incomes, and improvements to infrastructure.

Under Official Dispatches issued by the Prime Minister on March 10, the Mekong Delta’s Can Tho city and the two northern provinces of Hoa Binh and Hung Yen will convert the use of nearly 134 ha of rice land to non-agricultural land for the implementation of different projects. Can Tho is to implement a residential area project, Hoa Binh a new urban area project, and Hung Yen an industrial cluster project.

Over recent years, land resources have not been fully utilized to become an important internal force for socio-economic development, and the real estate market has not developed sustainably. These inefficiencies stem from inadequacies in the legal framework relating to real estate. There are still no synchronous mechanisms and solutions to regulate the market.

Demand for social housing in southern Dong Nai province is expected to increase in the time to come. As many new industrial parks come into operation, the province’s workforce may increase by 450,000 workers. According to a plan on social housing in the 2021-2030 period, Dong Nai will set aside more than 920 ha of land for the task.