Prime Minister: Real estate prices must be the driving force for development, not the driver for development.

Prime Minister Pham Minh Chinh said that real estate prices must be the driving force to promote development, not suppress development. Photo: VGP/Nhat Bac

On the morning of February 17, Prime Minister Pham Minh Chinh chaired a national online conference on removing difficulties and promoting the safe, healthy and sustainable development of the real estate market.

Speaking at the conference, Prime Minister Pham Minh Chinh highly appreciated the reports and opinions at the conference, and requested that agencies absorb them to complete and submit them to competent authorities to issue appropriate directives after the conference.

Emphasizing the important results and achievements of 2022, the Prime Minister stated that the macro economy is stable, inflation is controlled, growth is promoted, major balances are ensured, and the labor market recovers in a context of many difficulties and challenges. Social security is guaranteed, people's lives are improved. We still maintain independence, sovereignty, unity, territorial integrity, political stability, and social order and safety. Foreign affairs and integration are promoted and expanded, and the country's reputation in the international arena is increasingly enhanced. The fight against corruption, negativity and healthy markets are actively implemented.

The Prime Minister affirmed that the important results and achievements in recent years and in 2022 are the foundation for us to confidently and courageously continue to carry out the work.

In addition, the socio-economic situation has also seen some emerging issues, including the real estate issue, which we have been and are trying to resolve. The Prime Minister emphasized that in the process of development, it is inevitable that problems will arise and conflicts will need to be resolved. This is inevitable, because our country is developing, the economy is in the process of transformation, the socialist-oriented market economy operates in conditions of internal and external fluctuations; the scale of the economy is still modest, there are still many internal difficulties, on the other hand, it is deeply integrated, the economy is highly open, a small external fluctuation can also have a big impact on the internal.

The important thing is to detect in time, maintain calmness, courage, steadfastness, perseverance, promote the spirit of great national solidarity, unify will and determination to handle arising problems, difficulties and obstacles. We do not panic, waver, or fear any difficulties, challenges, or changes, but at the same time, we do not get carried away by victories, do not become negligent or subjective when the situation is more favorable, and do not lose opportunities.

The comrades chaired the conference. Photo: VGP/Nhat Bac

The Prime Minister pointed out a number of emerging issues in the real estate market.

Firstly, the supply-demand structure is out of phase, focusing too much on high-end segments and paying little attention to the middle-income and low-income segments.

Second, the prices are unreasonable and not suitable for the average income per capita. According to the press, it takes 1 year of average income per capita to buy 2 square meters of luxury housing.

Third, policy response of relevant entities (management agencies, enterprises, banks) is still slow.

Fourth is legal problems.

Fifth, capital sources are still difficult (credit, bonds, other sources).

Sixth, project planning and project structure adjustment are still slow.

Seventh, cadres in some places and at some times are afraid of responsibility and do not dare to do it.

Eighth, businesses are not really flexible and have not promptly handled problems caused by themselves.

Regarding viewpoints, thinking, and problem-solving methodologies, the Prime Minister stated that the more difficult and challenging the situation is, the more the relevant entities (management agencies, enterprises, banks, customers) must unite, promote a sense of responsibility, and jointly handle issues in the spirit of harmonious benefits and shared risks between the State, people, and enterprises. If this structure is not harmonious, it will not be stable and no one will be able to develop.

Along with that, what is said must be done, what is committed must be done and done effectively, specifically, measurably. Solve immediate problems while handling long-term issues, do not change status suddenly, operate jerkily.

Complying with market rules, supply and demand rules, competition rules, real estate is equal to other industries and fields. In which, the balance point, the harmony of supply and demand is reflected in real estate prices, prices must be the driving force to promote development, not to eliminate development.

Specific tasks and solutions for relevant subjects have been fully included in the resolutions and directions of the Government, the Prime Minister and the documents and reports of the conference. The Prime Minister emphasized some additional contents.

State management agencies strengthen state management, review, supplement, perfect institutions, develop plans, strengthen supervision, inspection, and resolve emerging issues.

Banking and financial institutions must unblock capital flows and resolve credit problems.

Real estate businesses must be responsible for themselves, solving the difficulties they themselves caused by inaccurate forecasts, poor market development, ineffective capital investment, etc. Restructuring segments, reasonable prices to promote liquidity, aiming for profitable but harmonious business.

"When doing business with profit, we have to compensate for when doing business with loss. We cannot always make profit, we cannot demand profit even when facing difficulties, no one will hold our hands until night, no one will sleep with us until morning, we have to contribute for the common good", the Prime Minister emphasized.

Banks cut input costs, increase digital transformation, and reduce deposit interest rates with the participation of the State Bank; thereby reducing lending interest rates, restructuring debt groups, reducing fees, charges, etc. Only when the economy develops can banks develop.

Authorities at all levels remove difficulties and procedural obstacles, speed up the development of plans, strictly implement plans, promptly adjust plans and adjust projects in the area to suit local conditions and situations.

Another important task is to ensure the legitimate rights and interests of customers, while strengthening propaganda and guiding customers to choose good and suitable products, contributing to the safe, healthy and sustainable development of the market.

In the near future, the Government will have a separate project on housing development, housing for workers and low-income people.

The Prime Minister welcomed the State Bank Governor's report at the conference on the credit package for this sector. The Government will consider and report to competent authorities for consideration and decision.

At the same time, the Prime Minister requested to organize effective, accurate, timely communication work, objectively, honestly and accurately assess the situation, and avoid false information.

Emphasizing the spirit of the conference is to remove difficulties and promote the real estate market to develop safely, healthily and sustainably, "no one will rescue anyone", the Prime Minister said that after the conference, the Government will issue a resolution, but on the basis of functions, tasks, powers and the spirit of the conference, the subjects must immediately carry out the work to effectively implement the goals, tasks and solutions set out./.