Explaining at the Economic Committee on removing difficulties in the real estate market
This morning (January 24), Minister of Construction Trinh Dinh Dung will explain to the National Assembly's Economic Committee about the current situation and solutions to remove difficulties and obstacles for the real estate market.
The explanation session at the National Assembly's Law Committee on traffic violations on April 24, 2012. - Photo: VGP/Thanh Chung
According to the Ministry of Construction's report, from the beginning of 2012 until now, the real estate market continues to face difficulties, real estate prices have decreased in all market segments. Ho Chi Minh City and Hanoi alone account for nearly 50% of the real estate market nationwide, which is also where the market situation is most difficult.
The sluggish real estate market has led to a rapid increase in real estate and construction material inventories. According to incomplete reports from 50 localities, there are 42,230 houses in inventory, 92,800 m2 of office space for rent, 98,407 m2 of commercial center space, 7.9 million m2 of residential land, and 1.9 million m2 of other commercial land.
The estimated value of total inventory capital is about 111,963 billion VND, of which the value of real estate inventory in Ho Chi Minh City is 30.2 trillion VND and in Hanoi is more than 14 trillion VND.
However, the Ministry of Construction said that the inventory data does not reflect the actual situation when there are still many projects with inventory but have not reported and because the characteristics of real estate inventory are different from the inventory of other industrial products (many apartment buildings are under construction, partially mobilized capital, many projects have cleared the site, invested in infrastructure construction but had to stop due to lack of market, secondary investors have bought but cannot sell to consumers).
Faced with difficulties in the real estate market, the Ministry of Construction has advised the Prime Minister to issue a number of solutions to strengthen real estate market management (Directive 2196/CT-TTg).
On January 7, 2013, the Government issued Resolution 02/NQ-CP on a number of solutions to remove difficulties for production and business, support the market and resolve bad debts" for implementation.
These solutions have created positive signals. Many businesses have proactively adjusted their business strategies; supported home buyers in many forms such as bank loan support, promotions...
In particular, housing prices have decreased significantly compared to the fever period of 2008-2010. Many projects have reduced prices by up to 50%, returning to the same price as in 2006, helping to gradually warm up the affordable housing segment in Hanoi and Ho Chi Minh City.
At the conference summarizing the construction industry in 2012 and planning for 2013 (January 16), Minister of Construction Trinh Dinh Dung said that 2013 is the year the industry will have to focus on removing difficulties for the real estate market in conjunction with the housing development strategy until 2020, developing social housing, housing for poor households in phase 2...
According to (Chinhphu.vn) - LT
