Short supply causes real estate prices to continuously increase
Vietnam's real estate market has gradually heated up thanks to increased new supply and support policies from the Government. However, the increase in supply is mainly contributed by the high-end segment, which only meets a very small part of the housing demand, while the demand of the majority of people - affordable housing - is being "abandoned", causing the imbalance between supply and demand to become more and more serious.
Experts say that drastic and thorough measures are needed to improve supply, clear up stalled projects, and "shelved" projects to bring new supply to the market.
Assessing the current housing supply, Mr. Nguyen Van Dinh - Vice President of the Vietnam Real Estate Association said that efforts to solve difficulties for the real estate market have had positive results when the market has had new supply, especially in the period from the beginning of the year until now, creating about 40,000 new products.
However, according to Mr. Dinh: “There is a paradox in the real estate market that supply can be improved, in principle the selling price should decrease, but here the supply is improved but the price is high. In general, if there is no improvement in price, transactions will decrease and stagnate - this is a problem that makes us very worried”, Mr. Dinh shared.
Mr. Dinh also shared that the real estate market is in a transitional phase, so it will be very sensitive to positive or negative influences from the subjects.
To solve this situation, the State needs to soon have support measures to clear the way for affordable commercial housing projects, social housing and have more recovery policies for the resort real estate market. At the same time, it is necessary to have the participation and companionship of all subjects including: State management agencies, professional social organizations, real estate enterprises and real estate brokers.
Thoroughly resolve "shelved" projects
Also related to the story of housing supply, Dr. Le Xuan Nghia, member of the National Financial and Monetary Policy Advisory Council, said that the Vietnamese real estate market is currently facing many difficult problems, especially a series of "shelved" projects that have been delayed for a long time, causing waste of national resources and negatively affecting both people and businesses.
According to statistics, Hanoi has nearly 1,500 "shelved" projects, while Ho Chi Minh City has about 2,600 projects. This situation not only causes a housing shortage but also reduces job opportunities. In that context, management agencies have taken positive actions to remove difficulties. Currently, Hanoi is reviewing all projects facing difficulties, including projects behind schedule and "shelved" projects to find solutions.
However, Mr. Nghia said that the most necessary thing now is to build a National Assembly Resolution to remove obstacles related to law, management and administrative procedures... The real estate market is related to many laws, from the Land Law, Investment Law, to the Real Estate Business Law, a National Assembly Resolution, or the National Assembly can authorize the National Assembly Standing Committee to build a Resolution that will create the necessary legal framework to thoroughly resolve current shortcomings.
“This is not only the hope of real estate businesses but also the solution to the housing problem for millions of people. If we do not act promptly, the market will continue to fall into a vicious cycle, and investment and development opportunities will be missed,” Dr. Le Xuan Nghia emphasized.
