Property

The Quang Binh Provincial People’s Committee has established three working groups to remove difficulties and obstacles in public investment projects that have fallen behind schedule. The groups are responsible for handling difficulties in the disbursement of public investment and proposing solutions.

Ho Chi Minh City plans to build 367,000 more houses by 2025, totaling 50 million sq m. The average housing area in the city will increase to 23.5 sq m per person by 2025 and 26.5 sq m by 2030. According to calculations by the city’s Department of Construction, about VND1.52 quadrillion ($65.62 billion) is needed to implement projects within the city’s housing development strategy in the 2021-2030 period.

At a recent conference on opening up capital for the real estate market, while businesses said capital from banks to real estate was slowing, the State Bank of Vietnam confirmed that it would not tighten real estate credit but would strengthen management of loans to the real estate sector, especially where there is risk. According to analysts, Vietnam should choose a flexible credit policy for each market segment to better match reality.

At the third session of the 15th National Assembly (NA) on June 8, Minister of Construction Nguyen Thanh Nghi identified nine problems and inadequacies in the country’s real estate market and proposed a range of solutions to develop the market stably, efficiently, and sustainably, such as perfecting the legal system, restructuring real estate credit, strictly controlling the issuance of corporate bonds in real estate, and boosting the transparency of information on housing and real estate.

The expansion of Hanoi and Ho Chi Minh City along with the implementation of key transport projects are creating opportunities for investors to develop mega-urban projects. According to the Vietnam Association of Realtors (VARS), urban projects with areas of 100 ha or more in districts far from the city center are the main source of supply for the real estate market.

The construction sector is working to increase the average housing area to 25.5 sq m per person this year and for the national urbanization rate to reach 41.5-42 per cent. In order to achieve these goals, the Ministry of Construction (MoC) has called for the revocation of public projects that are not really necessary and are ineffective, and for the scattered nature of investment to be addressed.