Real estate market - Final article: Need for synchronous solutions

Lesson 1: Initial Movement

(Baonghean.vn) -The real estate market is currently showing positive signs. This is a good opportunity for businesses investing in this field to "shake up" their luggage, continue to innovate and improve to survive and develop, and at the same time actively contribute to "heating up" the real estate market. However, in addition to the efforts of each business, it is necessary to have synchronous mechanisms, policies and the active participation of all levels and functional sectors.

In Nghe An, there are about 100 investment projects in the real estate business sector (total area of ​​1,000 hectares), of which in Vinh City there are 80 projects and some projects are being implemented and have been put into use such as: Doi Cung apartment building, Nguyen Sy Sach apartment building (Hanoi Housing Development and Investment Company No. 30); Project of Tecco Joint Stock Company; Petroleum Investment and Trading Joint Stock Company in Quan Bau Ward; Project of Vinaconex 9 Joint Stock Company in Nghi Phu Commune... and some projects in localities such as: New urban area of ​​Vuon Xanh Real Estate Company in Do Luong Town; Loc Chau housing project in Cua Lo Town of Hanoi Housing Development and Investment Joint Stock Company No. 30... This has enriched housing products, creating excitement for the real estate market. However, these projects still only account for nearly 7% of the total investment (the total registered investment in the area is more than 50,500 billion VND). These statistics show that there are still many projects and large amounts of money that have not been invested in the real estate market in a timely manner, and therefore, there is still a large gap in this field that needs to be exploited promptly.

Real estate investors are optimistically waiting for the real estate market to "warm up".

After successfully investing in many real estate projects in Vinh City, TECCO Joint Stock Company is now taking advantage of the "warm" opportunity of the real estate market to launch policies to attract customers and boldly invest, speeding up the progress of unfinished projects such as the project of the general service housing area and social housing in Le Loi ward, the resettlement area of ​​72m road in Nghi Phu commune. Or Nghe An Petroleum Investment & Trading Joint Stock Company is also continuing to invest in building No. 1 (11 floors high) including 63 apartments at Nghi Phu project. In addition, it is actively promoting the progress of the new urban area project of Petroleum in Vinh Tan... Or at Hanoi Housing Investment & Development Joint Stock Company - No. 30, it is also speeding up the progress of some unfinished projects such as: High-rise building project 482; Project to renovate Quang Trung C area; New urban area and high-rise apartment building on Lenin Avenue (currently, the A3 building of the 14-storey apartment building has completed the rough construction)...

In 2011, the Department of Planning and Investment granted investment licenses to 23 projects with registered investment capital of up to thousands of billions of VND, including large projects such as: Residential area combined with commercial center, townhouses and villas by Song Hong Housing Development Investment Joint Stock Company (investor) in Nghi Phu commune, Nghi Duc with total registered investment capital of up to 721.70 billion VND; 72m resettlement area project in Nghi Phu commune by New Technology Construction and Application Investment Joint Stock Company (investor) with total registered investment capital of 512.03 billion VND; Townhouse project, commercial center and high-class hotel on Nguyen Thi Minh Khai street by Nghe Tinh General Materials Joint Stock Company (investor) with total registered capital of 310 billion VND; Son Ha new urban area project (in Nghi Lien - Vinh City)... Among these newly licensed projects, the Son Ha new urban area project has a fairly fast implementation progress. Although the project was implemented right at a time when the real estate market was gloomy, the investor (Son Ha Joint Stock Company) quickly completed the necessary procedures, completed the site clearance of the entire project land area and is proceeding with the construction of technical infrastructure.

Mr. Nguyen Dinh Loi - Deputy Director of the Department of Construction said that in order for enterprises to survive and develop in the difficult period of the real estate market, enterprises need to proactively change their business plans, adjust the product structure of real estate projects to suit the needs of the market; form joint ventures and associate with other enterprises with financial potential to continue implementing projects; diversify investment capital sources for real estate projects, avoiding over-reliance on bank loans. In particular, enterprises should not invest in new real estate projects but focus on completing projects or construction items that have started construction and are likely to be completed in 2012; develop reasonable sales plans to share difficulties with customers and promote market development, increasing liquidity for transactions.

As mentioned above, the investment capital in the real estate sector is quite large, but in reality it has not yet met the investment needs for real estate projects, so currently there are many projects that cannot be implemented and many projects are being invested in unfinished. To help businesses have enough capital to complete real estate projects, state management agencies need to take active and timely measures such as: Negotiating with banks to find solutions to help investors access loans with reasonable interest rates. Focusing on completing administrative procedures to eliminate unnecessary procedures and reduce the time for processing records in construction investment, site clearance compensation, land price determination, and issuance of land use right certificates. Depending on the specific situation and conditions, allowing the conversion of commercial housing projects to serve the purpose of resettlement and social housing types for low-cost rental; Allowing the adjustment of the product structure of each commercial housing and low-income housing project to suit market demand. There is a policy of buying back some apartments that investors have not sold at reasonable prices to serve the resettlement needs of some key projects. Urgently establishing a Housing Development Fund to support capital for businesses and people who want to buy houses...

With the active support of appropriate policies, mechanisms and mechanisms from all levels and functional sectors and the efforts of real estate investment and business enterprises, in the coming time, the real estate market will warm up and be hot enough to "thaw the ice".

Hoang Vinh